Anger with the Property market and rent increase !!

[MAC]

Rents on the way up?

Couple of points - Delboy, you're landlord is obliged to provide a rent book, what's he going to do if you request one? Kick you out? Any landlord with any common sense would see where that is likely to lead to.....does he accepts cheques?

On another point Bearish said "The increased supply of property created by landlords selling up combined with record housing output could push prices down rather quickly." As I stated before I think some of the Buy To Let lads will get out now they've reaslised it's not "free money". I also think that some of the non-revenvue compliant lads will head for the hills... This will have the effect of reducing supply (WITHIN DUBLIN CITY) and ergo rents will be re-enforced (yields will increase in the house price drops at the same time). The overall market will lift and therefore landlords will be complying and meanwhile the sprawl will continue out by Kildare / Louth etc. Bottom line is that govt. intervention tends to cause more problems than solutions.

This post will be deleted if not edited immediately, this is depressing!!!!!!

MAC

 

[Sean]

.

"Denial is NOT a river in Egypt"

That's quite funny actually; - I'll have to remember that one...

 

[Delboy]

DeNial

If your from Cork, DeNial is a river in Egypt !!!!!!!!!!!

 

[Bearish]

Market Index

Mags,

As for rental levels I do believe they should be dictated by the market, not government. However in order for the proposed legislation to work The need some objective measure of what is happening to general rental levels in the MARKET. Just as we have the CPI or ERSI house price index to compare against increased prices when buying a retail product or a house, so too should there be a measure to compare particular rental changes against. Otherwise how can you objectively say that a particular rent increase is generally above or below changes in the market. I suspect that the legislation is primarily there to protect the more vulnerable in society who will never own their own home And there will always depend on the rental sector. Young professionals such as myself are more than capable of knowing what is going on in the market and haggling with our landlords. If the haggling isn’t to our satisfaction then we can move somewhere else. Older people and those on lower incomes with families are more vulnerable and are not as mobile. It would be easier for these people to have a simple reference rate against which to judge whether their landlord was being fair in imposing rent increases. That way if market rates are increasing 5% then the landlord can reasonably ask for a 5% increase, but not a 15% increase. It seems logical to me anyway.

As I stated before I think some of the Buy To Let lads will get out now they've reaslised it's not "free money". I also think that some of the non-revenvue compliant lads will head for the hills... This will have the effect of reducing supply (WITHIN DUBLIN CITY) and ergo rents will be re-enforced

There is an oversupply of rental accommodation in Dublin at the moment. Just look at any area on Daft.ie to see the supply out there. As a result rental levels in general are falling. I agree this trend will cause some new buy to let landlords out of the market. Until this over supply is eliminated rents will continue to fall to a level where they meet demand. I can’t see the reasoning for you to believe that rental levels will then go back up in the short-term unless you believe there will be increased demand. Previously landlords enjoyed the combined effect of Irish graduates getting good jobs in Ireland and renting out for a few years before buying a house as well as foreign workers coming to Ireland and renting accommodation. Both these trends are in decline. There is less immigration into the country as a result of the downturn in the economy and the majority of new graduates are finding it difficult to get good jobs and are therefore going abroad or living at home with their parents. Both factors are likely to increasingly lead to softening in demand for rental accommodation. Therefore I cant see rents i9nn general increasing in the short to medium term.