Budget cut for housing renovation aid

The National Housing Agency (Anah) has reduced the budget for its energy renovation aid, MaPrimeRénov', by 351 million euros for 2026 due to a government-imposed credit freeze in June. The agency had initially planned to distribute 4.38 billion euros in subsidies but now has a reduced budget of 4.01 billion euros after the freeze.

Government savings measures

The government announced a series of savings measures in June to avoid a public deficit overrun caused by the war in the Middle East. These measures affected several billion euros across most ministries, with the Anah's MaPrimeRénov' program being significantly impacted.

Impact on renovation programs

The budget cut affects two main components of MaPrimeRénov': the "accompanying journey" for comprehensive housing renovations, which loses 255 million euros, and subsidies for co-ownership renovations, which fall by 50 million euros. This will result in 14,241 fewer homes being fully renovated in 2026.

Reduction in individual renovation support

The "step-by-step journey" for individual home renovations sees a 46 million euro budget cut, leading to a decrease of 40,000 subsidy applications. The government has also narrowed the list of eligible works to focus on the installation of heat pumps, which is expected to further limit the scope of supported renovations.

Anah's response to budget changes

In a press release, the Anah board of directors noted that it has acknowledged changes in energy renovation policies from September and October of last year, including the transfer of funding to energy savings certificates (CEE). This shift reflects a refocusing of subsidies toward step-by-step renovation approaches.

Criticism of budget cuts

Jacques Baudrier, a deputy from Paris city hall and now a board member of Anah, criticized the budget cut for MaPrimeRénov' as a "regrettable setback" that undermines a major 21st-century housing initiative. He expressed concerns about 2027, predicting it will be "worse" due to an additional 200 million euro reduction in the Anah grant proposed in the government's October budget.

Proposed solutions to funding challenges

Baudrier is advocating for the creation of a new revenue stream specifically for energy renovation and for allowing the Anah to access financial markets to borrow funds. These proposals aim to address the current funding shortfall and support ongoing renovation efforts.