# Pre budget Rpz and inflation



## moneymakeover (3 Aug 2022)

Hello

Previously the rule was 4% rent increases

Now it's inflation or 2% whichever is lower?

In a time when inflation is 9%... rent increases are limited to 2% ?

First want to check if what I'm saying is correct

And then what can be done to change things


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## PebbleBeach2020 (3 Aug 2022)

I would expect tax treatment of landlords to be relaxed significantly in the budget. I don't see them allowing rental increases more than 2%, it would be political suicide to do so. However by not doing so, more landlords will leave the sector.


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## moneymakeover (11 Aug 2022)

If as expected interest rates increase 0.5% in September then my interest-only repayment will have doubled = 100% increase.

Why am I constrained on increasing rent but banks are not constrained limiting mortgages?


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## Purple (11 Aug 2022)

moneymakeover said:


> If as expected interest rates increase 0.5% in September then my interest-only repayment will have doubled = 100% increase.
> 
> Why am I constrained on increasing rent but banks are not constrained limiting mortgages?


Because you're a landlord. 
The State is spending nearly a billion Euro subsidising the supply side of the rental market. 
They are also the biggest purchaser of property in the private sector, property which they then remove from the private rental market. 

That's a big part of the reason your rent receipts are as high as they are now. In other words that subsidy and that spend is already benefitting you as a landlord.


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## moneymakeover (11 Aug 2022)

Purple said:


> Because you're a landlord.
> The State is spending nearly a billion Euro subsidising the supply side of the rental market.
> They are also the biggest purchaser of property in the private sector, property which they then remove from the private rental market.
> 
> That's a big part of the reason your rent receipts are as high as they are now. In other words that subsidy and that spend is already benefitting you as a landlord.


There is a certain logic on what you're saying. The property market is off balance.

But the landlords getting below market rates, what about them?


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## DazedInPontoon (11 Aug 2022)

moneymakeover said:


> But the landlords getting below market rates, what about them?


They're still by and large struggling a lot less in life than people whose rent is increasing faster than their wages


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## Purple (12 Aug 2022)

DazedInPontoon said:


> They're still by and large struggling a lot less in life than people whose rent is increasing faster than their wages


The main driver of rent increases is State intervention in the market. They are removing rental units from the private rental sector and they are inflating prices by increasing HAP.


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## DazedInPontoon (12 Aug 2022)

Both things can be true.


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## Purple (5 Sep 2022)

DazedInPontoon said:


> Both things can be true.


Both things are true. The State is removing properties from the private rental market while capping the rents landlords can ask for.


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## Horatio (6 Sep 2022)

DazedInPontoon said:


> Both things can be true.


I think they can both be true at the same time & indeed are true but if you have a different view explaining why both can't be true I'd like to understand it (sincere).


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## DazedInPontoon (6 Sep 2022)

Horatio said:


> if you have a different view explaining why both can't be true I'd like to understand it (sincere).


I do not have one


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