Financial assistance and homeownership schemes in France

There are several financial aids and homeownership schemes in France, each with specific objectives, mechanisms, and eligibility conditions. Below are the main schemes currently available.

Controlled-Price Homeownership

This is a local scheme implemented by certain local authorities to offer new homes at prices below market value. The principle is straightforward:

  • The local authority sells land to the developer at a reduced price.

  • In return, the developer commits to selling certain homes at a price cap to first-time buyers or lower-income households.

This system helps reduce the purchase cost without changing the legal status of the property. However, it depends on local programs and is not available everywhere.

Advantages:

  • Sale price below market value (often 15% to 30% lower)

  • Can be combined with other aids (PTZ, subsidized loans)

Conditions:

  • Income ceilings must be met

  • Often reserved for first-time buyers or primary residences

Social Homeownership

This is a broad term covering schemes designed to facilitate access to homeownership for low- to moderate-income households. It notably includes:

  • Rent-to-own schemes through the Social Lease-to-Own Loan (PSLA)

  • The Solidarity Real Estate Lease (BRS)

  • In some cases, the sale of social housing (HLM) units to their tenants at preferential prices

PSLA (Social Lease-to-Own Loan)

The PSLA is a state-backed scheme based on a rental period followed by purchase:

  • You first rent the new property (rental phase, often up to 4 years), paying a monthly fee.

  • Part of this fee is treated as savings and deducted from the purchase price when you exercise the purchase option.

  • The purchase price is set from the outset and may be particularly advantageous.

PSLA Advantages:

  • Reduced VAT of 5.5% on new properties

  • Exemption from property tax for up to 15 years in many cases

  • Allows gradual ownership, even without an initial down payment

Conditions:

  • Income ceilings apply

  • The property must become your primary residence

  • Scheme mainly applies to new-build housing

BRS (Solidarity Real Estate Lease)

The BRS is a scheme that separates land ownership from building ownership:

  • The buyer owns the building, while the land remains the property of a Community Land Trust (Organisme de Foncier Solidaire – OFS).

  • The buyer signs a long-term lease (usually between 18 and 99 years) for the land.

  • This separation significantly reduces the purchase price, as land often represents a large share of total property costs.

BRS Advantages:

  • Reduced purchase price (sometimes 20% to 40% lower)

  • Eligibility for the PTZ and reduced VAT at 5.5% in certain cases

Conditions:

  • Property must be used as a primary residence only

  • Compliance with income ceilings and anti-speculation rules is required

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