IPP Report n°10 - June 2015

Reforming French housing benefits

rapport-ipp-10-aplIPP Report n°10 – June 2015

Authors: Antoine Bozio, Gabrielle Fack, Julien Grenet, Malka Guillot, Marion Monnet, Lucile Romanello

Contacts: antoine.bozio@ipp.eu, julien.grenet@ipp.eu

Summary: Personal housing benefits are at the crossroads between housing policies aimed at facilitating access to a necessary good, and social policies aimed at improving standards of living for the poorest. They are therefore social benefits that are closely linked to the cost of housing. As a result, housing benefits have inflationary effects on rents, which in turn reduce the effectiveness of this policy. While a significant proportion of housing aid is captured by landlords, public expenditure devoted to this policy – more than €16 billion – is of limited effectiveness in terms of its stated objective of reducing poverty and poor housing situations. Given the importance of rental housing policy in France, both for potential beneficiaries and for public finances, reforming the system of personal housing assistance to improve its effectiveness is a major public policy challenge. The objective of this study is to propose and analyze several reform scenarios aimed at reducing the inflationary effects of personal housing assistance.

logo-pdf-minReforming French housing benefits (in French)



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