The quarterly rent reference index (IRL) created by Law n°2008-111 of 8 February 2008 on purchasing power corresponds to the mean of the consumer price index excluding tobacco and excluding rent over the previous twelve months.
It is an over-the-year chain-linked index. It is constructed by multiplying the index of same quarter of previous year by the change between these two periods of the average over twelve consecutive months of consumer price index excluding tobacco and rents.
The index is calculated in relation to a reference of 100 in the fourth quarter of 1998.
The calculation is performed on the series of the consumer price index excluding tobacco and excluding rent which is not rounded off.
The value of the reference index used to review housing rents is rounded off to two decimal places.
The rent reference index came into force on 10 February 2008 (Article 9 of Law 2008-111 on purchasing power) and replaced the rent reference index- 2005 law (created by Law n°2005-841 of 26 July 2005) as of that date.
The Rent Reference Index concerns rent for premises for use as a main residence governed by the Law of 6 July 1989 and furnished premises subject to Article L 632-1 of the Construction and Housing Code (CCH).
This new index now replaces the Cost of Construction Index (ICC) for the revision of:
- payments on property leasing with purchase option contracts for buildings for housing purposes or professional and housing use that are either completed or under construction at the date of signature of the agreement;
- rents on residential buildings within the framework of farm tenancies (Article 411-11 of the Rural Code): "This rent and the minimums and maximums are revised each year, in line with the variation in the rent reference index published each quarter by the National Institute for Statistics and Economic Studies and corresponding to the mean over the previous twelve months of the evolution in consumer prices excluding tobacco and excluding rents."