In France, several million homes are classified F or G under the Energy Performance Diagnostic (DPE). These energy-inefficient properties represent a major challenge for homeowners and buyers because they directly impact property value and complicate real estate projects. In this article, discover the precise definition, current regulations, renovation work options, available financial aid, and the concrete impact on your buying or selling plans.
What Is an Energy-Inefficient Home in France?
Definition and DPE Calculation
An energy-inefficient home is a property classified F or G under the Energy Performance Diagnostic (DPE). Specifically, its energy consumption exceeds 330 kWh/m²/year in primary energy, or its greenhouse gas emissions exceed 70 kg CO₂eq/m²/year.
The DPE evaluates two main aspects: energy consumption (energy class) and greenhouse gas emissions (climate class). The final result is represented on a scale from A to G. Class A indicates optimal performance, while class G corresponds to the most energy-consuming homes. Since January 2026, the DPE calculation includes a new electricity conversion coefficient (1.9 instead of 2.3), which mechanically improves the rating of many electrically heated homes.
Class F corresponds to energy consumption between 330 and 419 kWh/m²/year and emissions between 70 and 99 kg CO₂/m²/year.
How Can You Tell If Your Home Is an Energy-Inefficient Property?
Several concrete signs can help identify an energy-hungry home. Abnormally high heating bills are the first indicator. If you constantly feel cold in winter despite the heating being on, or if some rooms remain cold while others overheat, your insulation is probably inadequate.
Excessive humidity is also revealing: frequent condensation on windows, damp patches on walls, mold, or peeling wallpaper. Finally, a recent DPE classified F or G clearly confirms the property’s status as an energy-inefficient home.
According to the National Observatory for Energy Renovation, around 3.9 million primary residences were affected as of January 1, 2025, representing 12.7% of the housing stock. Including secondary homes and vacant dwellings, this figure reaches 5.4 million.
French New Law and Rental Ban Timeline in 2026
Energy Standards and Rental Ban Since 2025
The Climate and Resilience Law of August 22, 2021 introduced a progressive schedule aimed at removing energy-inefficient properties from the rental market. Since January 1, 2025, homes classified G under the DPE can no longer be rented out. This ban applies only to new rental agreements signed after that date.
The schedule continues with the ban on F-rated homes from January 1, 2028, followed by E-rated homes from January 1, 2034. The goal is clear: encourage landlords to renovate and improve the energy performance of their rental properties.
Landlord Obligations: Existing Tenants and Rent Increases
If a tenant already occupies a property classified F or G, the existing lease is not automatically terminated. However, landlords must comply with a strict rule: rent freezes. Since August 24, 2022, any rent increase has been prohibited for F- and G-rated homes, whether during lease renewal, tacit renewal, or annual rent review.
The only way to lift this freeze and increase rent again is to carry out energy renovation work enabling the property to reach at least class E. A new DPE must then be issued to prove the property has exited energy-inefficient status.
Seasonal Rentals and Condominiums: Special Cases
Since January 1, 2025, newly listed seasonal rentals requiring a change-of-use authorization are also subject to DPE requirements. These properties must have an energy rating between A and E. From 2034 onward, all furnished tourist accommodations will need to comply with this standard.
For condominium apartments, energy renovation work on common areas requires a vote during the general assembly meeting. Since the energy transition law, these works can be approved by a simple majority (majority of votes cast by present or represented co-owners), making implementation easier.
Deadline Date | Concerned DPE Class | Applicable Measure |
|---|---|---|
January 1, 2025 | G | Ban on rental listings (new leases) |
January 1, 2028 | F | Ban on rental listings (new leases) |
January 1, 2034 | E | Ban on rental listings (new leases) |
How to Renovate and Insulate an French Energy-Inefficient Home
Carry Out an Energy Audit to Identify Priority Work
Before starting renovation work, it is essential to conduct an energy audit. This comprehensive assessment identifies the most energy-consuming areas of your property and establishes a coherent renovation plan. The audit precisely identifies sources of heat loss and prioritizes interventions according to their effectiveness.
Since January 1, 2025, an energy audit has been mandatory for the sale of properties classified E, F, or G. Beyond this legal obligation, it is a valuable tool for prioritizing your investments and maximizing the impact of every euro spent. A qualified assessor will provide you with a detailed report including several renovation scenarios to achieve a satisfactory energy rating.
Structural Insulation and Heating System Replacement
Once priorities are identified, renovation work can begin. Poorly insulated attics are responsible for up to 30% of a home’s heat loss. Addressing this area offers a rapid and significant return on investment.
Replacing an old oil or gas boiler with an air-to-water heat pump can dramatically reduce energy bills. Thermodynamic water heaters, double-flow ventilation systems, and wall insulation from the inside or outside effectively complement this comprehensive renovation approach.
Apartment or House: Adapting Renovation to Your Property
The type of property directly influences the feasibility and scope of the work. A detached house offers significant flexibility for all renovation tasks, from roof insulation to replacing the heating system.
By contrast, a condominium apartment involves specific constraints. Some work affecting common areas or the building’s exterior requires approval from co-owners at the general assembly. Regardless of the configuration, the goal remains the same: gain at least two energy classes to leave energy-inefficient status behind and sustainably improve your home’s comfort.
What Financial Aid Is Available to Improve an Energy-Inefficient Home?
MaPrimeRénov’ and the Energy-Inefficient Home Exit Bonus
MaPrimeRénov’ is the main government aid program for financing large-scale renovations. The scheme requires at least a two-class energy improvement, enabling an F- or G-rated property to comply with new standards. Until 2025, a 10% bonus was granted when renovations enabled a property to move from class F or G to class D or higher. However, this bonus was removed starting in September 2025.
Eligibility for MaPrimeRénov’ depends on household income and property location. Amounts vary according to your profile, reaching up to €30,000 for a two-class improvement and €40,000 for three classes or more. A prior energy audit remains mandatory to benefit from the aid and direct renovations toward the most effective improvements.
Interest-Free Eco Loan and Other Schemes
The eco-interest-free loan (éco-PTZ) allows homeowners to borrow up to €50,000 interest-free over 20 years. Since July 2025, the technical criteria for the éco-PTZ have been aligned with those of MaPrimeRénov’, simplifying procedures.
Additional aid is also available to reduce renovation costs: Energy Savings Certificates (CEE) paid by energy suppliers, as well as local authority grants that vary depending on your municipality or region. These schemes can be combined, enabling you to finance a significant portion of your renovation project.
Checklist of Available Financial Aid
Buying or Selling an Energy-Inefficient Home: What Should You Do?
Buying an Energy-Inefficient Home: Opportunity and Discount
Buying an energy-inefficient property can represent a genuine investment opportunity for informed buyers. These properties generally sell at discounts ranging from 10% to 20% compared to homes with better DPE ratings. This price difference reflects regulatory constraints and the energy renovation work required.
Purchasing such a property offers several advantages. The lower price can provide access to areas where the real estate market is usually more expensive, or allow buyers to acquire a larger apartment. After renovation, the property can generate significant added value thanks to its improved energy class. Available financial aid, such as MaPrimeRénov’, also reduces renovation costs and improves overall project profitability.
However, risks must also be considered. Renovation work can be expensive, especially if wall insulation and heating system replacement are required. Work timelines and technical constraints (particularly in condominiums) should also be anticipated. Before proceeding, it is essential to accurately assess the overall budget: discounted purchase price + renovation costs + additional expenses. This total should remain lower than the price of an equivalent already-renovated property for the operation to truly be worthwhile.
Selling an F- or G-Rated Property: Advice for Homeowners
If you own a property classified F or G, you are probably wondering whether it is better to renovate before selling or accept a discount. The answer depends on your situation and the reality of the local real estate market.
Selling the property as-is with a discount remains possible and may be wise if the necessary work is too extensive or if you wish to complete the sale quickly. The selling price must then reflect the estimated renovation costs and the property’s energy constraints. A precise property valuation carried out by a Capifrance advisor will help you set a realistic and attractive price for buyers seeking opportunities.
You may also choose to complete certain renovations before listing the property, especially if these improvements significantly increase the energy rating. This strategy can reduce the discount and broaden the pool of potential buyers. In all cases, it is essential to highlight the property’s strengths: location, brightness, spaciousness, and layout optimization potential. These elements can offset a poor energy label and reassure buyers about the property’s post-renovation potential.
Your Capifrance Advisor Supports Your Real Estate Project
Are you planning to buy or sell an F- or G-rated property in France? Capifrance advisors, experts in their local markets, support you through every stage of your project. Thanks to reliable property valuations that take into account all the property’s criteria, including its energy class, they help you determine the right selling price or evaluate your acquisition budget. Their in-depth local knowledge enables you to anticipate renovation work and integrate financial aid into your strategy. Whether you want to turn an energy-inefficient property into an investment opportunity or sell your home transparently, contact a Capifrance advisor today to benefit from personalized support and successfully complete your real estate project.
FAQ
Which DPE Ratings Are Prohibited from Sale?
There is no ban on selling energy-inefficient properties in France. You may sell an F- or G-rated property without legal restriction. However, the DPE must be provided to the buyer during the transaction. Since April 2023, an additional energy audit has also been required for F- and G-rated properties offered for sale, in order to inform buyers about necessary renovations and their estimated cost.
How Can You Report an Energy-Inefficient Rental Property?
If you are a tenant living in substandard housing, you can report the situation through Histologe, the official platform for reporting degraded housing conditions. Your file will be forwarded to the relevant authorities (town hall, ADIL, Regional Health Agency). You may also directly contact your local ADIL office for legal advice and personalized support regarding disputes with a landlord.
How Can You Efficiently Heat an Energy-Inefficient Home?
Before replacing your heating system, it is essential to first address insulation. Insulating attics and walls and replacing windows significantly reduces heat loss and makes heating much more efficient. Once insulation is improved, opt for efficient solutions such as a heat pump or thermodynamic water heater, which heat your property economically and environmentally responsibly.
Is It Mandatory to Renovate an Energy-Inefficient Home Before 2028?
For owner-occupiers, there is no obligation to renovate before 2028. However, renting out a G-rated property has been prohibited since 2025, and renting out an F-rated property will be prohibited from 2028 onward. If you wish to continue renting your property, you must carry out renovations to achieve at least class E.
Can You Receive Financial Aid to Renovate a Rental Property?
Yes, landlords can benefit from MaPrimeRénov’ as part of a large-scale renovation project. The éco-PTZ and Energy Savings Certificates (CEE) are also available to landlords. These schemes help finance a significant portion of energy renovation work.
- MaPrimeRénov’: up to €40,000 depending on income and targeted energy improvement; mandatory energy audit.
- Éco-PTZ: interest-free loan up to €50,000 repayable over 20 years; can be combined with MaPrimeRénov’.
- Local grants: varying amounts depending on your municipality or region; inquire with your town hall or France Rénov’.
- CEE certificates: grants paid by energy suppliers; can be combined with other schemes.
Author :
Frédéric Rémy – Director of Commercial Performance
A real estate professional for several years within the Capifrance network, I would like to share with you some essential advice to help you succeed in your real estate project with the support of our advisors.
