The French property market in 2026 is marked by a recovery in existing-home transactions, a gradual stabilisation of prices and ongoing debate about access to credit. These three trends, combined with recent regulatory changes, are reshaping the decisions buyers and sellers make.
HCSF rules and disposable income: the real debate over mortgages in 2026
Discussion about financing goes beyond interest rates. The French Banking Federation is calling for the HCSF (High Council for Financial Stability) rules to no longer be legally binding. At the same time, a bill proposes giving greater weight to disposable income after expenses when assessing borrowers’ creditworthiness.
Both proposals are still under discussion. No changes to the criteria have been approved so far, leaving strict requirements in place for households looking to borrow.
One figure is worth noting: nearly one in two mortgages now has a term of 25 years. This longer repayment period reflects the real pressure on access to homeownership, particularly for first-time buyers. To keep up with Le Coin Immobilier property news and understand how these developments could affect a home-buying project, it is worth keeping an eye on regulatory decisions as well as interest rates.
Property transactions and prices: what the first-half figures show
According to data published by Foncia, the existing-home market recorded 8% more transactions than in the first half of 2024. The size of properties sold also increased, with a notable rise in Île-de-France.
Prices, meanwhile, have stabilised after several quarters of decline. The slight increase recorded over the half-year remains modest, but it is changing market sentiment. Buyers and sellers are gaining a clearer picture of price levels, helping transactions move forward more smoothly.
Significant regional differences
The recovery is not evenly distributed. Major cities and Île-de-France account for a significant share of the increase in sales volumes, while some rural areas and medium-sized towns are still seeing long selling times.
Average selling times remain around three months, following a period in which they had lengthened. This suggests the market is no longer contracting, although it has yet to regain the fluidity seen before 2022.
Negotiations and fair pricing
Buyers are returning, but they are negotiating. Sellers who list their property at market value from the outset can significantly reduce the time it takes to sell. Even a modest initial overvaluation extends the time on the market and often leads to successive price cuts, which can be seen as a negative signal.
New lease templates and EPC ratings: regulatory requirements in 2026
The decree of 6 July 2026 introduced new lease templates for primary residences. Two notable changes:
- A termination clause is now included in the standard contract, setting out more clearly the conditions under which a lease can be terminated if the tenant breaches their obligations.
- The lease must explicitly state that the property is rented as the tenant’s primary residence, clarifying which legal framework applies.
- Leases signed before this date do not need to be rewritten for this reason alone. Only new contracts are affected.
When it comes to energy performance, EPCs (Energy Performance Certificates) continue to weigh on the rental market. Recent reports describe tenants being forced to look for another home when their landlord chooses to sell rather than carry out the renovations required under the regulatory timetable.
Energy-efficiency renovations affect more than just property values; they directly impact the availability of rental homes in areas with tight housing markets. Landlords of poorly insulated properties must choose between investing in renovations and leaving the rental market.
Interest rates and borrowing capacity: a guide for buyers
Financing conditions have improved compared with the 2023–2024 peak. This relative easing has helped bring some buyers back to the market. Even so, the cost of borrowing remains a key factor when assessing whether a project is financially viable.
Three factors shape purchasing power in 2026:
- The mortgage interest rate, which has fallen from its peak but remains above the historically low levels of 2020–2021.
- The loan term, which is increasingly being extended to 25 years to offset the higher overall cost.
- The 35% debt-to-income cap imposed by the HCSF, which mechanically limits the amount borrowers can borrow, regardless of the interest rate.
The interaction between these three factors explains why lower interest rates alone are not enough to restore the home-buying power people had before 2022. A household borrowing over 25 years at a moderate rate but subject to a strict debt-to-income cap will not necessarily be able to buy a larger property than in 2024.
First-time buyers under pressure
Households without a substantial deposit are hit hardest by the combined effect of interest rates, loan terms and debt limits. Longer mortgage terms provide some relief, but they reach their regulatory limit at 25 years. If calls to relax the HCSF rules were successful, the benefits would probably be concentrated among this group of buyers.
The 2026 property market rests on a fragile balance: transaction volumes are recovering, but financing constraints have not gone away. The next quarter will show whether price stabilisation continues or regional disparities widen further.
