France's DPE Reform Removes 700,000 Homes from 'Passoire Thermique'...

Since January 1, 2026, a new calculation method for the Diagnostic de Performance Énergétique (DPE) has taken effect in France. This reform immediately removes nearly 700,000 residential properties from the classification of passoires thermiques, or thermal wastebaskets. The change represents a significant shift for thousands of property owners who were previously restricted by the energy efficiency labels of their buildings.

The reform alters how energy performance is calculated, resulting in improved ratings for a large number of homes. This change prevents these properties from being classified as energy-inefficient, which carries significant legal and financial implications for owners in the French real estate market. The measure is expected to provide a 'breath of fresh air' for the affected owners, potentially easing rental restrictions and renovation obligations that were previously triggered by the former classification.

The reform of the Diagnostic de Performance Énergétique (DPE) officially commenced on January 1, 2026. The primary change involves a new mode of calculation that determines the energy efficiency of residential buildings. This technical adjustment is the direct cause of the shift in classification for nearly 700,000 homes across the country.

Previously, these properties were labeled as passoires thermiques, indicating poor thermal insulation and high energy consumption. The new calculation method assesses the buildings differently, resulting in more favorable energy grades. Consequently, these homes are no longer categorized under the strictest energy inefficiency standards.

The removal of 700,000 properties from the passoires thermiques list offers immediate relief to their owners. In the French property market, a low DPE rating can severely restrict the ability to rent or sell a property. It often imposes mandatory renovation works to meet energy efficiency standards.

With the reform, these owners are no longer subject to the same level of regulatory pressure. The improved ratings mean they can avoid penalties associated with energy-inefficient housing. This development is viewed as a significant positive change for the real estate sector, allowing for smoother transactions and reducing the financial burden of immediate renovations for a large segment of the population.

The reform is expected to have a stabilizing effect on the housing market. A significant number of properties that were previously considered unsellable or difficult to rent due to their energy classification are now back in play. This increases the available housing stock and may help balance supply and demand in certain areas.

Furthermore, the change impacts rental prices and property values. Properties with better DPE ratings generally command higher rents and sale prices. By upgrading the status of these 700,000 homes, the reform could lead to a re-evaluation of assets across the market, benefiting both sellers and landlords.

While the reform provides immediate relief, the long-term energy efficiency goals for buildings remain in place. The French government continues to push for improved insulation and reduced energy consumption in the housing sector. The DPE remains a central tool in this policy framework.

The adjustment of the calculation method highlights the evolving nature of energy diagnostics. It demonstrates that regulatory frameworks can be adapted to reflect technical advancements and economic realities. For the 700,000 owners affected, this reform marks a new chapter, though the broader challenge of improving the country's housing stock continues.