The new zoning “ABC” was revised by the Order of 04/07/2019 made pursuant to Article R.304-1 of the Construction and Housing Code.
It classifies the territories according to the degree of tension of their local real estate market.
Zoning A/B/C characterises the tension of the housing market by dividing the territory into 5 zones, from the most tense (A bis) to the most relaxed (zone C).
Zoning A/B/C is based on statistical criteria linked to territorial dynamics (demographic trends, etc.), local market tension and rent and price levels.
Zoning A/B/C has multiple uses:
— Private rental investment scheme: rent and resource ceilings for tenants.
— Device Rent affordable and rent better.
— Rental investment scheme for institutional investors: VAT rate reduced to 10 % in zones A and B1.
— Zero Rate Loan (PTZ): resource ceilings, tranches, quotas and operating ceilings
— Rental-Accession Social Loan (PSLA): resource, rent and price ceilings
— Tax on high rents for small-area dwellings in Area A.
— Mobilisation of public land
— etc.
More information at https://www.ecologie.gouv.fr/zonage-b-c
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