The French property market is going through a paradoxical period: home-buying plans are picking up, transactions are increasing, but borrowing costs have been rising again since autumn. How can we measure the gap between the announced recovery and the actual conditions for accessing housing? Three indicators help make sense of the situation: mortgage rates, property values based on their energy rating, and the new contractual rules governing rentals.
Mortgage rates: the return of financial constraints
The downward trend in interest rates seen between late 2024 and the first half of 2026 has reversed. Financing conditions are tightening, and rising rates confirm a rapid turnaround.
This trend does not affect all borrower profiles equally. Higher-income households continue to secure negotiated terms. By contrast, lower-income borrowers and some borrowers over 40 face double pressure: higher nominal rates and the cost of borrower insurance, which weighs more heavily when the usury rate limits room for manoeuvre.
This gap between buyer groups is worth watching closely, as it is reshaping the profile of active buyers in the market. First-time buyers, who had begun returning, may be held back again if the trend continues beyond the first quarter of 2027. To follow these developments week by week, Immobilier Hebdo news brings together data on mortgages and prices.
Property prices and EPC ratings: a comparison of value drivers
Sale prices remain relatively stable nationwide, but this average masks significant differences based on a property’s energy performance. The EPC rating has become as important a factor in determining value as location.
| Factor | Impact on price | Recent trend |
|---|---|---|
| EPC rating A-B | Higher sale value | Green premium rising in high-demand areas |
| EPC rating F-G (energy-inefficient homes) | Lower sale value, rental restrictions | Phased rental ban, with discounts widening |
| Mortgage rates | Reduce home-buying power | Rising for some loan terms |
| Electricity conversion factor (EPC) | May change the rating of homes heated with electricity | New calculation method referenced by data.gouv.fr |
| Renovation grants (MaPrimeRénov’) | Reduce the cost of bringing a property up to standard | Eligibility requirements may change in 2027 |
The most technical issue concerns the change to the EPC calculation for homes heated with electricity. A change to the conversion factor can shift a property from one rating to another, even if no work has been carried out. An online tool available via data.gouv.fr can be used to check whether a home is affected.
MaPrimeRénov’: a timeline to watch before year-end
Property owners planning energy-efficiency renovations should check whether their project is eligible before putting together a financing plan. MaPrimeRénov’ requirements could change in 2027, making it advisable to check each project’s eligibility promptly.
This timing constraint has a direct impact on transactions: a seller who puts off renovations risks seeing the discount on their property widen, while a buyer can factor renovation costs into negotiations if they know how much grant funding they are entitled to.
Property rentals: what is changing in residential leases
A decree has updated the mandatory information notice attached to residential leases. Details relating to the EPC and the use of the property as a primary residence have been revised. This change applies to new rental agreements signed since the decree came into force, and does not apply retroactively to existing leases.
The practical implications are as follows:
- Landlords must use the new version of the notice for any lease signed on or after the decree’s effective date, or risk a challenge from the tenant.
- Information about the property’s energy performance is now set out more explicitly in the contractual document, increasing transparency for tenants.
- Existing leases are not affected by the update, but a renewal or amendment may be an opportunity to comply with the new requirements.
This regulatory change is part of a broader trend: energy performance now determines access to the rental market as much as it affects rent levels.
Inequalities in access to mortgages: an overlooked aspect of the market
Most market analyses focus on average rates. This approach smooths over a more varied reality. The difference in terms between a 30-year-old borrower with a stable income and a 45-year-old borrower with an atypical profile can amount to several dozen basis points on the interest rate, plus higher insurance costs.
The usury rate, intended to protect borrowers, can paradoxically exclude some profiles from mortgage lending: when the combined cost of insurance and the nominal rate approaches the cap, the bank rejects the application rather than offering a loan above the legal limit.
For estate agents and notaries, this reality is changing the profile of buyers they see on the ground. Transactions are increasingly concentrated among households with substantial deposits or existing assets, which widens the divide between first-time buyers and existing homeowners moving up the property ladder.
This year’s property market cannot be summed up by a price curve alone. Rising rates, the growing influence of EPC ratings on property values, and new contractual obligations for rentals combine to shift the balance between buyers, sellers and landlords. Access to credit remains the most decisive factor, with terms varying significantly depending on the borrower’s profile.
