Séminaire Théorhis - The Judicialization of Rent Controls in Europe

conférence (en anglais) avec le professeur Alessio Sardo (Université de Gênes) et Allegra Grillo Doctorante (Université de Gênes, Projet ERC HABITAT)

Abstract :

This paper examines the judicial response to rent control of five courts: the ECtHR, the Italian Constitutional Court, the German Federal Constitutional Court, the French Conseil Constitutionnel, the Italian Cassation Court, and the French Court de Cassation. Based on an analysis of a sample of judicial decisions from rendered over time, a convergent trend emerges: A robust conception of property rights protection combined with a market-based approach underpins the judiciary’s assessment of rent controls. Surprisingly, this trend is prominent in the jurisprudence of the ECtHR: The Strasbourg Court has contributed to reshaping the distribution of power between tenants and landlords, favoring the latter in the transition of Eastern European Countries to the common European (free) market. Both in upholding and striking down rent control measures, European judges generally take the market value is the preferred benchmark for fair price; the commodity nature of housing underpins the argumentation of the European judiciary.

Conversely, the social function of property is downplayed or overshadowed: Rent controls are justified when the market value is taken as a pricing tag for rents; otherwise, they impose excessive burdens on landlords.