Elected officials on the Île d'Oléron, an island off the west coast of France, are now offering up to €10,000 to owners who agree to rent out their property to long-term tenants.
Depending on the size of the property, homeowners who commit to renting the property year-round for at least four years can receive between €5,000 up to €10,000.
This new rule implemented by the local council, aims to reduce the housing shortage.
Both Île d'Oléron and its neighbour Île de Ré, just off the coast of La Rochelle in south-west France, are massively popular with second-home owners.
Of the 30,000 homes on Île d'Oléron, more than 60 percent are second homes, making it almost impossible for locals to find a place a live.
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The islands, sometimes referred to as the 'French Hamptons' because of their popularity with wealthy Parisians, have a hugely inflated real estate market. The average price per square metre on the Île d’Oléron is €3,738, while on Île de Ré the price is €8,255.
The local Communauté de Communes is financing the €10,000 bonus scheme thanks to a successful lawsuit against Airbnb - it won €1.3 million from the online platform after a court found that Airbnb had not passed on the tourist tax to local authorities, as it is required to do.
Ultimately, the goal of the scheme would be to transform 150 second homes into long-term rentals.
"We have a major problem with year-round and seasonal housing on the Île d'Oléron. This prevents us from recruiting effectively from businesses, local authorities, and retirement homes, so we had to take multiple initiatives", Michel Parent, president of the Communauté de Communes, told regional French media France 3.
One of these initiatives involved converting a former retirement home into accommodation for young workers.
"We welcome all types of young people who need it. This includes young apprentices, students and seasonal workers", says Jacques Rodde, chairman of the Local Committee for independent housing for young people.
"It's for a short period, with three-month contracts renewable for up to two years, but it will enable them to find accommodation so they can eventually stay on the island".
The coastal city of Les Sables‑d’Olonne, located in the Vendée department on the west coast, has had a similar program since 2022.
It offers financial incentives to owners of second homes or vacant properties who agree to rent them out on a long‑term basis. About 400 units have been brought back into year‑round housing through this plan, which inspired the Île d’Oléron scheme.
More and more French towns are taking action to crack down on Airbnb and other tourist rental platforms, which are accused of taking housing off the local market, creating shortages and pricing locals out of the market.
READ ALSO: Airbnb crackdown: The French towns that have short-term property rental restrictions✎
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