: The system, based on apartment size, year of construction and location, will allow surcharges for luxury homes, according to Bloomberg. The mechanism is dangerous because the framework is deterring investors who, faced with the lack of freedom, will chose other investments, Jean-Francois Buet, chairman of FNAIM, France largest residential property-broker federation, said in a statement Monday. The proposal will limit rents in the French capital to 20 percent above and 30 percent below a neighborhood average, the government said June 12. About one in five of the 80,000 new leases signed in Paris each year may be capped, according to Observatoire des Loyers de l’Agglomeration Parisienne, the association mandated by the government to compile Paris rents. The party has called for the cap to be extended to all cities that face a tight housing market. Of these, a third will drop by less than 50 euros per month, a third by 50 euros to 100 euros, and the rest by more than 100 euros, according to OLAP. It a strong step for social justice as rents have climbed by 42 percent in the capital over the past 10 years, said Sandrine Rousseau, a spokeswoman for Europe Ecologie-Les Verts, France main environmental party.
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