France Targets 2.38 Million Empty Homes with Bold Tax Reform

France Takes on 2.38 Million Vacant Homes in New Housing Tax Reform

France is stepping up its fight against housing shortages with a bold fiscal reform aimed at mobilising over 2.38 million vacant homes across the country. The measure, scheduled to move forward in early 2026, seeks to make better use of the nation’s underutilised housing stock — a move seen as both economic necessity and social urgency.

According to the latest data from the national database LOVAC 2025, vacant homes now represent 7.2% of private housing. Of these, around 1.34 million have been empty for more than two years, a staggering figure in a country facing one of the worst rental crises in recent memory.

Two Visions: Assembly vs. Senate

The road to reform, however, is far from smooth. The French Parliament remains divided on how best to implement the new system.

The National Assembly’s stance (November 20): Deputies voted in favour of merging the taxe sur les logements vacants (TLV) and the taxe d’habitation sur les résidences secondaires (THRS) into a single unified housing contribution. The goal is to simplify taxation and give local authorities more flexibility.
The Senate’s counterproposal (December 2): Senators instead voted to abolish the TLV, transferring full responsibility to local governments by expanding the THLV (local housing vacancy tax) across all municipalities. This would give mayors greater power to decide— and potentially to increase— local tax rates.

Currently, the TLV applies in about 1,150 communes, mainly in high-demand areas known as zones tendues. The rates stand at 17% the first year and 34% for subsequent years, but the upcoming reform could allow for significantly higher rates.

A Stalemate Before the Holidays — and Fresh Talks in January

A joint parliamentary committee failed to reach a compromise on December 19, 2025, forcing the government to adopt a provisional law to maintain fiscal continuity. Prime Minister Sébastien Lecornu has since urged lawmakers to find common ground, with discussions set to resume in early January 2026.

The reform will return to the Assembly’s finance committee between January 6 and 9, as the government hopes to finalise a balanced plan that supports both housing access and local revenue.

Why So Many Homes Stay Empty

While the intentions behind the reform are clear, critics warn that not all vacant homes can easily be rented or sold. Many properties face complex legal, technical, or financial hurdles:

Inheritance issues: Unresolved estates can delay property transfers for years.
Structural problems: Some homes require major renovations or upgrades before they become habitable.
Rental risks: Owners fear damage, unpaid rents, or lengthy eviction processes that make them hesitant to rent out their property.
Rural depopulation: In small towns, there’s simply not enough demand to fill empty homes, no matter how low the rent.

Paris: The Focal Point of the Debate

Nowhere is the conversation more intense than in Paris, where officials estimate nearly 300,000 dwellings are either vacant or used as second homes. Local leaders argue that with sky-high rents and limited availability, such properties should not remain underused.

The debate has reignited a sensitive national question: Should fiscal policy override private property rights to ensure housing for all? For many, this is the defining tension of France’s modern housing policy.

What Property Owners Should Expect in 2026

If the reform passes in early 2026, France could see:

A broader and higher tax base for vacant homes.
More local control, allowing mayors to adapt taxes to local needs.
Administrative simplification, merging overlapping tax categories.
Incentives for owners to rent or renovate idle properties.

Experts say the measure could free up hundreds of thousands of units within a few years — but only if paired with better renovation support, tenancy protection, and streamlined bureaucracy.

Final Thoughts

France’s housing crisis is at a crossroads. This reform, still under heated debate, represents one of the country’s most ambitious efforts to balance property rights, local autonomy, and the right to housing. Whether it succeeds will depend on execution — and the willingness of both policymakers and property owners to take action in 2026.