Do you expect the Lefties in the Public
Do you expect the Lefties in the PublicRents are rising due to undersupply of houses for rent so the main opposition party proposes the introduction of additional regulations to reduce the number of houses available to rent. The worst thing is no one in our economically illiterate media will call them out.
Looked at in isolation I agree, but there are other issues.Rent Controls reduce supply in the rental sector.
The biggest losers are those on moderately high incomes who had the misfortune to be born too late to buy property before the current boom.
Tenants need certainty too. If you know your landlord can evict you whenever they want on the pretext of selling the property it's hard to think of it as home of care that much about the upkeep.Looked at in isolation I agree, but there are other issues.
If landlords had greater certainty that they could collect rent and evict non paying and or disruptive tenants that would tend to increase supply.
Yes, same cohort are the losers when trying to buy.Those on moderate incomes renting privately are certainly the losers here.
Cheap is a relative term. Appropriately prices works just as well for me.However property prices were very cheap until 5/6 years ago.
Only because of the inbuilt inefficiencies in the entire sector. Planning takes too long, land is too expensive, financing is too expensive, Government charges are too high and builders are grossly inefficient. The replacement cost reflects all of that.They are only now reaching replacement cost in most parts of the country.
Yes tenants need certainty but so do landlords. All of the changes to recent legislation has favoured the tenant. it is now getting to a point that Landlords have no control over their property. Landlords signed up to provide a service under agreed conditions at the time. With the changing legislation landlords are not been treated fairly at all. It is almost impossible for a landlord to get his property back to sell it.Tenants need certainty too. If you know your landlord can evict you whenever they want on the pretext of selling the property it's hard to think of it as home of care that much about the upkeep.
Yes, same cohort are the losers when trying to buy.
Cheap is a relative term. Appropriately prices works just as well for me.
Only because of the inbuilt inefficiencies in the entire sector. Planning takes too long, land is too expensive, financing is too expensive, Government charges are too high and builders are grossly inefficient. The replacement cost reflects all of that.
The view from NZ on our Government induced rental crisis -
https://i.stuff.co.nz/business/property/129646516/heres-what-we-can-learn-from-irelands-rental-market-collapseWill any Irish politician admit that rent controls have created this crisis?
It has got exponentially worse since they were introduced in 2016. Also there is the opportunity cost of substituting an always-doomed-to-fail rent controls policy for proper remedial action (eg incentivisation of residential building/restoration/investment) that should have been taken back then.The crisis existed before rent controls. So it's impossible for them to have created it.
I agree with you on that. It was the 2009 government actions (not only backed but demanded by the then opposition parties) to constructively ban new residential property development, building and investment that created it. The problem since then is that the political cartel have doubled down on their error instead of admitting it.They also changed the tenancy length in 2016, and we've had a net population increase since 2015.
They also made more changes in 2019 https://www.rtb.ie/legislation-change
It make no sense to cheery pick rental controls as the cause or even the main factor. They certainly made it worse.
Residential construction activity was pointless in 2009-2013(ish) as it was cheaper to buy an existing home then build a new one. House prices needed to rise in order to stimulate any activity at all at all.It was the 2009 government actions (not only backed but demanded by the then opposition parties) to constructively ban new residential property development
Yes, and they rose alright only for the 2009 measures to block any recovery in activity.Residential construction activity was pointless in 2009-2013(ish) as it was cheaper to buy an existing home then build a new one. House prices needed to rise in order to stimulate any activity at all at all.
Nail on head.After the last crash I know why a lot of people think high house prices are a bad thing. But you can have low house prices or lots of new dwellings built, but not both.
The population has increased by 361,671 since 2016. Our average household size is 2.75 persons. That means we needed 131,517 new units to homes, just under 22,000 a year, just to stand still.and we've had a net population increase since 2015.
Because it draws capital away from the wealth creating sectors of the economy and devalues labour relative to capital.After the last crash I know why a lot of people think high house prices are a bad thing.
You can if you can built dwellings cheaply. The problem is that almost every sector that has an input into producing residential property is grossly inefficient. When prices are high there is no incentive to improve productivity and reduce waste. Given that construction accounts for 17% of global GDP that makes the everything less efficient and so makes everyone poorer in the medium to long term.But you can have low house prices or lots of new dwellings built, but not both
See my previous post. It's not unreasonable to say that those demographic changes are the main driver rather than rent controls.On 1 August 2016, before the introduction of rent controls, there were 3,600 properties nationwide advertised to rent on daft.ie.
On 1 August 2022 there were only 716 properties nationwide advertised to rent on daft.ie.
So, I think it’s fair to say that we have moved from a challenging, supply-constrained, rental market in 2016 to a full blown crisis in 2022.
I think it’s obvious that there has been a net reduction in available rental properties over the intervening period at a time of increased demand. In my opinion, the primary reason for this net reduction was the introduction of rent controls.
So, I think it’s entirely reasonable to say that the current crisis in the rental market is Government-induced.
I disagree.See my previous post. It's not unreasonable to say that those demographic changes are the main driver rather than rent controls.
We did for a few years from 1999 until 2001. Rents went through the roof and there was an exodus of Dublin renters to buy places in Gorey, Portlaoise and the like. This was after the government screwed new landlords by blocking them from claiming a tax deduction for mortgage interest, but Charlie McCreevy defused that particular timebomb at the end of 2001. I remember him being loudly denounced on these pages for doing so.We also had a growing population during the tiger years but we didn’t have an associated rental market crisis.