Entire country to be brought under Rent Pressure Zone in major change agreed tonight by Government leaders
by jklynam
Entire country to be brought under Rent Pressure Zone in major change agreed tonight by Government leaders
by jklynam
45 comments
At least the Irish Property Owners Association are happy sure that’s all that matters, but in all seriousness why implement this when it goes against the recommendations in the report from Housing Commission?
I had a customer in my job today subject me to a 10 minute rant about how furious she was about this. She said it’s so hard to be a landlord in this country these days. She even had to fly back from her Florida home just to sell her rental property.. god love her. I’m not sure why she thought a retail worker would give a fuck.
This will do absolutely nothing to increase supply.
You would want to be mad to invest in such a regulated market when so many better opportunities are available.
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So can someone break this down for me? This means landlords can jack up rent to whatever they like?
Ok. Good job on this in so far as the report informs me. Now more people have protections. Now we also need to get serious about planning and a state agency to drive up development.
At least this is some good news ‘According to proposals going to cabinet, landlords will only be allowed reset rents if the tenant leaves voluntarily. If a landlord serves a tenant a notice to quit, the landlord will not be allowed reset the rent. The move will aim to remove the economic incentive for landlords to evict tenants.’ ..
The real rate of return on buying a property is shocking. Factor in all costs, income tax of up to 52% and then the time effort, you’d be mad to get into the landlord game.
And as much as the Irish love to hate on the landlord class, a private rental market is needed, whether that be large corporations or individuals.
Seems like a win for the renters lobby going off the early media reports?
Thought this was waterford whispers for a sec
Rent is so astronomical atm, that any increase in rent should only be down to inflation. It does makes sense in that regard
However the only way to drive actual competitiveness is to make the market as viable as possible to investors. The reason rents are that astronomical in the first place is because landlords know they can charge whatever the fuck they want, and someone desperate is guaranteed to take it
I honestly don’t know what the fuck we can do
WONT SOMEBODY PLEASE THINK OF THE LANDLORDS
“According to proposals going to cabinet, landlords will only be allowed reset rents if the tenant leaves voluntarily. If a landlord serves a tenant a notice to quit, the landlord will not be allowed reset the rent. The move will aim to remove the economic incentive for landlords to evict tenants.”
Have to say, I am absolutely stumped to see the Irish government actually do something to reign in the cut throat nature of Irish landlords for once.
Whats the catch? They rarely, if ever, do something collectively to benefit the people…
Government body that actually builds houses. Vienna model. Too much money to be made off housing now.
I love us doubling down on rent controls which have never worked anywhere.
All these whinging landlords about how it’s impossible for a profit to be made off other people’s misery here. All these investors who apparently can’t make a dime off the labour of others. Where the fuck are people pulling these sob stories from?
By any stretch Ireland is clearly one of the most profitable markets for landlords in Europe. Why do we entertain this absolute garbage.
“Latvia, Ireland, and Italy top the country list with very robust average rental yields, signalling prime opportunities for investors such as Maria. Latvia, with its rental yield of 8.06%, stands out as the highest in Europe.
If current rental yields remain stable, it would take approximately 12 years of rental income to recoup an initial property investment in Latvia. In Ireland and Italy the amount of years needed would be thirteen and fourteen, respectively.”
See: [https://www.euronews.com/business/2024/05/20/europes-best-and-worst-property-markets-where-to-invest-in-2024](https://www.euronews.com/business/2024/05/20/europes-best-and-worst-property-markets-where-to-invest-in-2024)
Wonder was this expected?
Cousin of nine that had been paying €600 a month for a one bed in Longford, was told last month that the rent would be doubling from this month.
Yeah, we need more attractive conditions for landlords, so they buy more properties, so there is even a bigger shortage, so there is a lesser chance for normal people to get properties. What the…
ELI5 why is forcing landlords out of the rental market a bad thing? Will these houses not go to first time buyers?
I understand there needs to be a certain amount of rental properties available. But why should prospective buyers be competing with landlords trying to build their property portfolio?
When are we going to demand that the state set up its own house building agency?
I’m guessing this is why my landlord told me he was selling the house I’ve been in for 12 years today then.
> meaning the remaining one fifth of tenants in Ireland not in an RPZ will benefit from rent controls.
Not sure this is the massive change ppl think it will be.
The evidence is that rental caps reduce supply. They are good news for existing renters, bad news for anyone trying to rent.
If this is what the government is actually doing, it appears that they are playing gesture politics rather than trying to meaningfully improve the supply of property. That’s disappointing.
This means that the last government’s housing policy which already decreased the amount of new builds happening is even more of a failure. The rent pressure zones were meant to be temporary but they will be here till the next crash. There is no actual expertise informing any of the decisions the government are terrified and running in circles.
They haven’t fixed the planning process or zoning laws. The cost of building is some of the highest in Europe and the amount of construction workers is not increasing. The amount charged for rent is insane but without more properties being built it always going to be insane. Supply and demand.
The saddest part there is that there is no end game here, they don’t know what they are doing. If they had a plan to fix the other parts while the rent control is in place that would be something. But they don’t. It is going to be a political hot potato and everyone is going to lose out.
I am glad it offers protection for renters as they need it but if they had fixed the other parts we wouldn’t be in this situation. But based on how quick the policy changes it could change by the end of week.
This just further disincentivizes supply from growing. When can we get a political party that supports supply side economics?
As long as the archaic and monumentally stupid/selfish planning laws – that gives massive power to NIMBYS – remains , the housing situation will remain a nightmare.
No amount of bandaid solutions like this is going to fix anything in any significant scale in the long-term. short of planning reform and collectively telling NIMBYS to fuck off will achieve that.
Is this a good or a bad thing?
wow, I am actually flabbergasted. I genuinely did not think this government had a single morsel of capability to act in favour of the working and renting class. For a second I actually thought this was some sort of fake or joke headline, I was waiting for the punchline.
One interesting wrinkle to this is that a whole lot of rural whole-property AirBnBs are about to become illegal, assuming the current legislation regarding planning permission requirements for short-term rentals in RPZs remains in force.
Surprisingly fair enough. Another good thing about this is landlords will no longer be keeping properties vacant for 2years between tenancies to set new rents avoiding RPZ limits which will bring more rental supply back on the market.
Cue every landlord in the country rushing to hike up rents before this kicks in!
😬
Everything outside of building housing and reducing population growth/demand is a bandaid fix
Might be dumb comment but for landlords, they pay 40% tax right?
So if they buy a 400000 house as example, mortgage per month is say 1400 – they rent it for 2000 so end result is 1200 after tax and a 200 loss per month until mortgage is paid off.
Is that a realistic scenario or am I way off?
This will clearly reduce supply (small landlords exiting), disincentivise institutional landlords from entering the market and make existing institutional landlords respect existing tenancies and stop maintaining them but charge crazy rents for new ones to average out their desired profit targets. Great work 👏
So will this mean the end of short term rentals? Do they not need some sort of licence (or something) if they are Rpz?
> Vote for centre-right government because SF would wreck the economy
> Get moronic SF policies anyway
Why not just vote for SF?
Why do I get the feeling rent is about to skyrocket just before this is implemented
This will result in tenants who don’t want to quit coming under pressure from landlords to submit their own notice to quit.
Finally some decent development in this shit show.
More supply is needed and this will constrain supply as no landlords are going to want to enter a market that is so heavily skewed against them.
Giving in to opposition demands with cheap headlines over real solutions.
Ireland needs to do some government taking. Get the properties back, rent to their citizens at a reasonable rate.
I’m not a landlord, I swear. I’m also just after going sale agreed on my first house.
Having said that, up until now the best way of reliably growing wealth in the Irish economy has been through property. Now that it’s no longer a viable way to grow wealth, what’s left?
I think the rent pressure zone thing is great because it’s a measure that helps the poor, but I think DD needs to be abolished in the same breath.
A win for those that currently have a place to rent.
However, this won’t help new entrants to the rental market in the future who are looking for a place. It will cause a slowdown in the amount of buy to rent houses being built. And you can be sure that any future houses that come to the rental market will be rented out at extremely high prices because of low supply/high rental demand and because landlords will want to hedge against potential future inflation. It will be the same story for properties vacated for whatever reason why existing tenants.
I am guessing that the government is partly thinking about potential voters, the people likely to benefit the most from this our existing renters who mostly are Irish through naturalisation or indigenous birth and they don’t want to piss that group off too much.
A sizeable amount of the future entrants to the rental market who are going to have a hard time finding a house at an affordable price are probably going to be people who do not have a vote here in the general elections and the government don’t really care. Sure there will be some people who do have a vote who will be very pissed off but that number is going to be a lot fewer than the number of current ranchers who will vote.
At least I’m guessing these were some considerations.
Betting the farm on building apartments is an interesting one.
I can’t see the private market coming in and financing the construction of apartments en masse. The Minister talks about this burning security and confidence to the market. This will do the exact opposite, all this will do is demonstrate to investors how risky the Irish property market is because the government are making it up as they go.
At the end of the day every market including the property market is governed by supply and demand, supply just cannot be increased quickly enough so that the government wanted to do anything short-term to lower the cost of rentals they would have to massively reduce demand.
The recent comments by the Taoiseach have indicated that they are not going to go in this direction and will likely do the exact opposite.
Interesting times, interesting times.
I don’t agree with this as it targets landlords but not farmers who can freely shoot you for being on their land. Pick a side either land owners have all the power or have none
Landlords are not the biggest problem, agents are. It is in their interest to increase the rent frequently so they can force tenants to leave. They get their management fee regardless but they are chasing a letting fee for getting new tenants. Full rent regulation is the only solution.
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