Something I would be thinking about if I were still a landlord, being tied in to a 24 month rate when there is the chance of changes a government and the outside chance of a loony left influence in the dail. Should the next government increase the tax / cost burden on private landlords there will be no scope for reaction from the landlord for up to 24 months. Considering the hefty enough tax take on rental income as is … many LLs wouldn’t be able to handle further increases without the option to pass these costs on to the end user.
‘left’ was probably a wrong phrase, who I mean are those socialist / independent type politicians who feel that their target market should pay no taxes and the minority should pay for the lifestyles of their voters
The proposals also include an increase in RA/HAP levels in some areas. Increasing the rates of these payments is also a strong driver of rent increases for all tenants, both those in receipt of RA and those paying rents out of post-tax income.
The new Labour party policy will significantly increase rents in the short term and has increased the subsidy from the taxpayer to landlords.
Alan Kelly previously railed against the Central Bank macro-prudential policy saying that it was was probably correct in the long-term but was damaging in the short-term. His own policy proposal is wrong both in the short-term and the long-term.
From what I’ve heard today the most significant development is that public opinion is now aware that renters have influence in public policy. It’s easily overlooked in the analysis of the immediate impacts but in the bigger picture this has been a momentous move in Irish societies relationship with property matters.
The door is open to more demands and those who previously felt powerless won’t sit quiet.
I agree Catbear from the electoral perspective I can’t see what Labour has to lose from pursung this strategy. Landlords are unlikely to vote for them, the votes of the social welfare classes are lost to Sinn Fein but in urban areas, where the Labour vote is concentrated, a large minority of households are renting privately and are mightily pissed off with being fleeced by landlords and they votes are ripe for the plucking.
I heard AK47 on Morning Ireland and what struck me most was his unwillingness to make any concessions to landlords. When asked what he would do if landlords break the regulations his attitude was ‘we will fine them and we will resource the PRTB to police it’. But after all, no landlords vote Labour so why would he bother saying anything else?
I guarantee that the Labour manifesto will promise the introduction of full rent certainly, and will promise private tenants - we will fight for your interests.
Socialists have no problems robbing people, if anything they make an art out of it, just not THEIR kind of people, to quote Churchill “Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.”
to answer the OP, i have no idea why any landlord would bother to improve/repair the property and try to achieve better rents for a better home when they now have to justify to some bureaucrats the difference, the quality of rentals will just get worse
Fine. Leave prices drop so that folk who would like to exit the rental market can afford to buy then.
That’s the primary reason for the rental squeeze: numbers renting increasing because they can’t afford to buy.