In a letter to key players in the housing industry, French Prime Minister Sébastien Lecornu has proposed a plan to boost housing development in the 2027 budget, aiming to tackle France's long-standing housing crisis. The letter, obtained by Le Monde and reviewed by BFM Business, explains that the government will keep its strong support for the housing sector, even as it faces the challenge of reducing overall public spending. Although the 2026 budget brought some positive changes, such as an increase in construction permits and the start of new projects, the current pace of home building still falls far short of the target of 400,000 homes per year. Lecornu emphasized that the 2027 budget will follow the same strategy begun in 2026. A major focus of the government’s plan is the preservation of social housing, which provides affordable living options for lower-income families. Lecornu confirmed that the 500 million euros allocated to social housing in 2026, along with benefits like rent control exemptions, will continue. This stands in contrast to the proposal by opposition leader Marine Le Pen, who wants to eliminate the requirement that 20 to 25% of housing in new developments be social housing. The government also plans to invest in more sustainable construction of social housing in France's overseas territories and introduce an "adaptation bonus" to help retrofit existing homes to better handle extreme heat events. To support home ownership, the government will extend the zero-interest loan (PTZ), which currently helps 70,000 households annually, with 2.4 billion euros in funding next year. Lecornu also announced that the PTZ will be expanded to include families expecting a child or those who have had a child in the past three years, a response to France’s declining birth rates. This change is part of the government's broader effort to make housing more accessible and to encourage family growth. On the rental market, the Prime Minister proposed changes to the tax incentives for short-term furnished rentals, arguing that these should not receive more favorable treatment than long-term rentals. This is part of a larger housing bill, aimed at revitalizing and decentralizing housing across France, which is set to be reviewed by the National Assembly after being approved by the Senate and the Economic Affairs Committee. The bill includes measures to give more authority to local governments in housing matters, allow the rental of energy-inefficient homes, and simplify urban planning rules, inspired by recent major projects like the Notre-Dame cathedral restoration and the Paris Olympics. It also includes provisions to help people affected by this summer's wildfires rebuild their homes more easily and identically. Lecornu concluded that despite the difficult financial situation, the government remains committed to supporting the housing sector through both the finance bill and a dedicated housing bill. These reforms are seen as vital to achieving the goal of adding 2 million new homes by 2030, addressing both the immediate need for housing and long-term sustainability.