In France social housing is associated with the concept of low rent housing or “HLM housing” (Habitation à Loyer Modéré). It is a specific sector of the housing market, which is governed by legislative and regulatory provisions, separate from common law and regulated by the Construction and Housing Code (Le Code de la Construction et de l’Habitation, CCH. The HLM organizations benefit from state aid and are subject to administrative control.

Market trends

France has one of the largest stocks of housing in the EU when measured on a number per thousand population basis (513 per 1000 inhabitants, see table), but this is partly due to a relatively large number of second homes. France is facing a housing crisis affecting particularly middle to low income households and which concerns many regions and most urban centres. This crisis is due to an insufficient construction level throughout the last decade. Home ownership has grown steadily since 1954. 56% of French households own their own home. Between 1989 and 1995 the increase in home ownership slowed down due to a decision by government to reduce subsidies.

The proportion of private rented homes fell steadily until 1988. Its decline ceased due to an increase in demand for student housing, a decrease in new home owners and tax incentives to investment. Significant price rises have been going on for almost a decade, since the end of the early and mid-1990s slump in 1997. House price inflation continued to slow down during 2006 and year end inflation was around 7% and reached a peak of 16% in 2004. Social housing is estimated to represent about 19% of dwellings used as primary residence.

The overall rate of new social building has declined substantially since the mid-1990s - from around 50-60 000 dwellings a year to 36 000 in 2002, representing 12% of total new building at that date (9% in 2005). However, it is now increasing again: 57 000 units were built in 2006, to which 20 000 transfers from the existing stock should be added. Nonetheless, these increases are being partly offset by demolitions averaging 15 000 a year and sales now of around 5000 a year so that, all in all, the social housing stock is now growing by more than 50 000 a year (net).