IPOA on rent reform proposals: "A lot of the focus is at the higher level of the market"
Mary Conway, Chairperson of the Irish Property Owner's Association, on how proposed changes to Rent Pressure Zone's will impact landlords.
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The Journal
13 hours ago
- The Journal
New rent rules 'reasonable', says Minister, as govt to scrap cap on rent increases for new tenants
THE REFORMED RENT regulations will be 'well-balanced' and 'reasonable,' the housing minister has said, as the government is expected to scrap the 2% cap on rent increases for new tenancies. Under the proposal, rents for existing tenants in the entire country will be brought under control under the current Rent Pressure Zone (RPZ) system that is currently in place. However, the new plans will mean that the 2% rent cap will not apply to apartments built after a certain date, a move the government is hoping will increase apartment construction by the private sector. Landlords will also be allowed to hike rents in instances where tenants leave homes voluntarily. Where a notice to quit is served on a tenant, the landlord can't reset the rent, which the government hopes will remove any economic incentive for landlords to evict their tenants. Browne said it's about balancing protecting renters and attracting investment. 'What we're doing is protecting renters. We're doubling down on renters rights,' he said, speaking ahead of Cabinet this morning. Tenancy protections will be brought in, according to a government source, who said that protecting renters is a key component. It is expected that new tenancies, while facing higher rents, will see a six-year security of tenure rolled out. Browne said the expansion of RPZs is 'one strand' of a package that will be implemented in the next few weeks. 'If we don't do something, every rent in this country goes back to market, and I'm not prepared to let that happen.' 'Supply, supply, supply' Homelessness reached another record high in April, with 4,675 children having accessed emergency accommodation in that month. Advertisement The homelessness figures cover those living in emergency accommodation but not those rough sleeping, refugees, asylum seekers, individuals in domestic violence shelters, or those experiencing 'hidden homelessness', such as sleeping in cars, on couches, or other unsuitable living conditions. 'I am very conscious of homeless people. We shouldn't have any homeless people in this country,' said Browne. 'The way to address homelessness, the way [that] people can get homes that they need to live in, is through supply, supply, supply, supply.' Opposition parties have been calling for a reintroduction of the ban on no fault evictions. Asked whether he will consider such a move, Browne said: 'In fairness, everybody has been trying to do their best, but we do know the only way to address the homelessness situation, the crisis … is supply. And that's what I'm trying to do today, is address that supply issue.' Despite criticism from experts and homelessness charities, Browne says he's confident his plan will work, as he's 'put an awful lot of thought into it'. Housing protest Next week, the Raise the Roof campaign group will hold a demonstration outside Leinster House that is likely to heap further criticism on the government. The protest is seen as a reboot of the campaign and will coincide with a cross-party private members' bill calling for emergency action on the housing crisis. People Before Profit TD Paul Murphy said the Government's new plan could amount to it 'unleashing the landlords on renters'. Ethel Buckley, deputy general secretary of SIPTU, said she also fears the move will include 'greater sweeteners for investors'. Mike Allen, director of advocacy at Focus Ireland, said while there has been an increase in the amount of affordable housing built, it has not curbed homelessness and a dedicated homelessness plan is needed. He said homelessness organisations don't see protesting as an act of opposition to the Government, but rather as part of a democratic process where issues are raised. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Daily Mirror
a day ago
- Irish Daily Mirror
Rent Pressure Zones extended across entire country & new rules for rising rents
Rent Pressure Zones will be extended across the entire country under plans agreed by the Government leaders and the Housing Minister James Browne. The Rent Pressure Zone (RPZ) will be discussed by Cabinet on Tuesday and is set to cause significant political backlash. Taoiseach Micheál Martin, Tánaiste Simon Harris, Housing Minister James Browne and senior Ministers met in Government Buildings to discuss the plans on Monday evening. Rent caps of 2% will stay in place for existing dwellings. RPZ legislation will now apply across the entire country. There will be no caps on new build apartments, as part of a Government push to increase the supply of apartments being built. It is expected this will be linked to inflation rather than capped. It is expected that a new tenancy rule will be implemented, along with a restriction on no-fault evictions. After this period, believed to be six years, the rent can be increased to match market rates. In a major change, landlords will also be allowed to increase the rents between tenancies. However, landlords will only be able to reset a rent if their tenant voluntarily leaves. Where a notice to quit is served on a tenant, the landlord can't reset the rent, seeking to remove any economic incentive for landlords to evict their tenants. Minister Browne will also categorise landlords according to the number of properties owned. Currently, all landlords are treated the same regardless of how many properties they own. Smaller landlords will now be categorised, it is understood, as having three properties or fewer. The Irish Mirror understands that additional protections will be put in place for tenants. This will include limiting the situations in which a person can be evicted from a property. For smaller landlords, tenants can be told to leave the property if it is being sold or if family is moving in. However, the Irish Mirror understands that the list of eligible family members could be tightened. For larger landlords, they will be allowed to remove tenants if they break contractual agreements only. Rent Pressure Zone (RPZ) legislation was introduced in 2016. It limited the amount by which rents in RPZs could be increased to 2 per cent or the level of inflation, whichever is less. The legislation is due to lapse at the end of this year.
Extra.ie
a day ago
- Extra.ie
Rental reform plan will add to homelessness, landlords claim
New plans to reform the rental housing market are unfair and will have a serious negative effect on rentals, according to the Irish Property Owners Association, the body representing the country's landlords. The new two-tier reform, which proposes to lift the cap in rent pressure zones and provide for minimum six-year leases, is being debated in the Dáil tonight and considered by Cabinet tomorrow. The controversial measures are aimed at encouraging landlords to enter the market and increase the number of rental homes, but the Property Owners Association say it will have the opposite effect. Pic: Shutterstock They have urged the Government 'to consider the impact of, in effect, banning short-to-medium term letting of less than six years' and of the implications for owners of large, multiple tenancies who wish to sell the property. They also ask if the new reforms will include exemptions for homeowners going into nursing homes who want to rent their home for less than six years. 'The IPOA is concerned that the Government's proposed reforms are over-complicated and that the proposed 6-year minimum security of tenure will have a serious negative impact on private, non-institutional landlords, and on the rental market. The IPOA fears that the Government may not have fully considered some of the implications and consequences of the proposals,' spokeswoman Mary Conway said. Mary Conway. Pic: Supplied 'The proposed changes are unfair on the individual who – for good reason – wishes to, and needs to, rent out their home for a short period and points to a flaw on the part of the Government thinking which – by going after institutional landlords – has ignored the implications for individual, private landlords. 'We believe that in seeking to address political concerns about the role of institutional landlords (who are predominantly active in the Dublin region), the Government may be punishing individual landlords, particularly the types of landlords who are the drivers of rental supply in provincial towns and rural areas outside of the large cities.' Ms Conway added. Pic: Shutterstock The proposal to lift the cap on rent in rent pressure zones has been heavily criticised by renters and housing charities. Instead of limiting rent increases to 2% a year the rent will now be tied to the rate of inflation, meaning a higher increase in rents. The Government believes lifting the current rent cap will encourage large landlords to enter the Irish market, but critics and opposition politicians say it will lead to more homelessness if the cap is lifted. As a mark of Ireland's dysfunctional rental market, three-bedroom houses and apartments in Tallaght are now renting for a staggering €3,000 monthly.
