Access to real estate credit was tightened in 2022 with the increase in debtor interest rates and the problem of usury. There is another element that can block a loan application: a poor ECD (Diagnostics of energy performance). Banks are increasingly attention to property diagnosis and requires integration of costs for renovations in the financing plan. The hunt for thermal colanders has been open since the new climate act came into force.
The importance of property diagnosis
Appeared in the 2000s, DPE el Energy performance diagnostics must be integrated into technical diagnostic file (DDT) given to the buyer or tenant when selling or renting a home. Mandatory performed by a certified professional, this property diagnosis measures the property’s energy performance through an assessment of the amount of energy (energy label) and greenhouse gas greenhouse (climate label), expressed in letters from A for the most virtuous to G for the most energy-demanding. It is valid for 10 years and must appear in all advertisements for the sale or rental of real estate.
In addition to ECD, other mandatory property diagnostics must be added to DDT:
- found of risk of exposure to to lead for homes built before 1949
- the state ofasbestos for homes for which the building permit was issued before July 1997
- the diagnosis termites and other xylophage insects for dwellings located in an area declared by prefectural decree
- the state of the internal installation gas if she is over 15 years old
- the state of the internal installation ofelectricity if she is over 15 years old
- installation statussewerage if the home is not connected to the public grid
- the state of risks and pollution for housing located in the relevant municipalities
- the diagnosis noise for everything well located near an airport.
In July 2021, new version of DPE, which should make the diagnosis more reliable, more readable and more complete. Of the two brands (energy consumption and greenhouse gases), the worst letter is used to determine final energy class. Another major regulatory change has been DPE oppositethat is, the seller or lessor takes responsibility in the event of an error to the detriment of the buyer or lessee.
Buyers pay close attention to DPE, for informational purposes to know the performance of the sought-after home, to measure any necessary work to upgrade or improve comfort, also to negotiate with the seller. A poorly rated property can reduce the price between 7% and 15% compared to a better student. And at a time when energy bills are skyrocketing, the most mediocre homes in terms ofthermal insulation logically goes through discounts on their selling prices.
DPE scrutinized by the banks
Prospective buyers are not the only grantors significance for ECD. Banks are increasingly taking this into account, refuses to finance thermal colanders (classes F and G) if there is no solid real estate project at stake. The Climate and Resilience Act allows for the blacklisting of energy-intensive homes according to a specific schedule. Will be prohibited to rent:
- worst class G homes per 1eh January 2023
- all class G accommodation from 1eh January 2025
- Class F accommodation from 1eh January 2028
- Class E accommodation from 1eh January 2034.
The household that wants buy a thermal colander in 2022 must show the best intentions in relation to energy renovation. Whose Financial plan of a poorly classified home does not contain one envelope for work intends to requalify it, the bank does not even open mortgage file. The request for housing loan must be accompanied by quote cost of the renovation and upgrade work. ECD is now one of them criteria for granting housing loansalthough borrower solvency remains the cardinal determinant.
The importance that banks attach property diagnosis has become clear whether it is a rental investment by virtue of the development of the regulation, but also under a request for funding from primary or secondary residence. While energy crisis is only in its infancy, the banks are showing their commitment to the fight against high-energy housing by directing their financing towards real estate projects aimed at a significant improvement of ECD.
Some establishments such as Crédit Mutuel or Banque Postale offer in-house work loan to complete MaPrimRénov’, the public support system for energy renovation. Other financial support, theeco-PTZ : this interest-free loan of a maximum amount of €50,000, granted without resource conditions, is paid by certain banks, but largely lacking in visibility. However, we know that it is possiblesaves with energy renovation. that combination of MaPrimRénov’ and eco-PTZ has also been approved since 1 July 2022.
The construction sector and in particular the housing sector must commit to greater energy sobriety. In France, almost 70% of buildings represent 26% of total greenhouse gas emissions (ADEME figures). To reach CO2 neutrality by 2050must our country activate lever for energy renovation which is based on appropriate regulations that some consider oppressive (climate legislation and RE2020), and increased assistance to individuals.