As real estate prices remain high and mortgage rates stay above 3%, homeownership has become an increasingly difficult goal for many first-time buyers in France. In response to these challenges, the government is expanding the eligibility criteria for the zero-interest loan (Prêt à Taux Zéro, PTZ), starting on April 1st, 2025. This new initiative aims to make it easier for households to access housing by offering innovative solutions such as co-acquisition and real estate dismemberment.
Co-Acquisition: A New Path to Homeownership
The expanded PTZ will now include co-acquisition, a model that allows buyers to purchase a majority share of a property, with a bank covering up to 10% of the cost. This method, previously tested by Crédit Mutuel Arkéa through its Duoprimo program, helps first-time buyers overcome the challenge of saving for a large down payment.
Under this model, buyers will gradually repurchase the bank’s share over a maximum period of 10 years, eventually becoming full owners of their home. The government hopes this approach will provide a more accessible route to homeownership, particularly for those struggling with current market conditions.
Valérie Létard, Minister of Housing, explained at the Mipim real estate fair that the priority is to “support households struggling with the current market conditions.” The integration of co-acquisition into the PTZ framework is seen as a significant step toward reducing financial barriers for first-time buyers.
Real Estate Dismemberment: A Flexible Financing Option
Another innovative solution now eligible for PTZ financing is real estate dismemberment, a model similar to automobile leasing. In this approach, an investment fund purchases a property and sells 50% of it to the buyer for a period of 25 years. This allows the buyer to significantly reduce their initial debt by financing only half of the property’s price.
During this period, the buyer has the option to fully purchase the remaining share when their financial situation allows. This model, supported by the startup Neoproprio, provides a flexible and secure framework for buyers, with the terms guaranteed by a notarial contract.
The government hopes that this new financing option will encourage more households to invest in real estate and stimulate the sluggish housing market. However, questions remain regarding its accessibility. Will banks embrace these new mechanisms? Will developers be ready to offer these schemes to potential buyers?
Next Steps: Decree on Implementation
A decree specifying income ceilings and financing quotas for the expanded PTZ is expected within the next two weeks, providing more details on how these measures will be implemented. The government’s goal is clear: to offer a more gradual and inclusive approach to homeownership, allowing first-time buyers to enter the market with less financial strain.
As France seeks to address the challenges faced by new homebuyers, these new policies could represent a turning point. By offering flexible and innovative financing options, the government aims to make homeownership more accessible to those who need it most. However, it remains to be seen whether these measures will gain traction with banks, developers, and potential buyers.
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