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LANDLORDS SHOULD BE allowed to “reset” rents between tenancies to prevent investors from leaving the market, a new report has recommended.
In its latest report on Ireland, the Organisation for Economic Co-operation and Development (OECD) states that it is important to weigh the benefits of strict rent regulations on existing tenants in the short term against possible longer term drawbacks.
It goes on to state that stringent rent controls reduce the rates of return on real estate investment and create uncertainty, which can discourage developers and lenders from investing in real estate.
The report comes as Taoiseach Micheál Martin has floated the idea of reforming the Rent Pressure Zones (RPZs) so as to attract inward investment. Criticism has been levelled at him for also suggesting that tax breaks for developers might be necessary to boost supply.
Currently the RPZ system caps annual rent increases at 2%, or at the rate of inflation, whichever is lower, even if there is a change of tenant.
While the report finds that rent controls have had some “rent stabilisation effects”, it adds that the lack of data makes it difficult to measure the potential impact on supply.
In a suggestion that will alarm renters, it suggests that one option is to provide tenants with reasonable security over tenure, but allow rents to be freely adjusted for new contracts.
The OECD states that “Ireland should allow rents to be re-set between tenancies and adjusted for inflation during a residency, but care should be taken that it does not lead to unfair termination of contracts”.
“At the same time, keeping the balance of the rights of tenants and landlords is essential,” states the report.
In addition, the report warns that temporary tax measures introduced in recent budgets to address near-term affordability challenges should be phased out.
The OECD report warns against re-introducing tax incentives to stimulate house building amid speculation the Government is weighing up whether to use the measures.
Two government schemes, the Help to Buy and the First Home Schemes, which the government argues are there to help first-time-buyers, can “translate to higher house prices or rents over the medium term”, the OECD states.
It added there should be close monitoring of both programmes so they can be quickly adjusted if they create inflationary pressures on house prices.
The re-introduction of mortgage interest relief and extension of tax reliefs and credits for landlords and tenants are not targeted and can be regressive, the report also finds.
The Renter’s Tax Credit is also cited, with the OECD report stating that the ceiling for the credit for tenants was gradually increased from €500 to €1,000 in Budgets 2024 and 2025.
It criticises the credit for not being targeted, stating that rental support for households should be provided through welfare measures based on income criteria.
Asked about the the review of RPZs, Finance Minister Paschal Donohoe said the government is going to consider the matter. He said there is a need for balance, stating the government must ensure that those who are renting are in a position that their rents are affordable and have security of tenure, while also finding ways to boost supply.
“I know what an important role they (RPZs) play in preventing excessive rent increases,” he said, stating that is at the forefront of the government’s considerations.
Donohoe said taxation can play an important role in the delivery of more homes but any taxation changes will have to wait until Budget Day.
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Just goes to show that the death sentence should never be an option. The state illegally killed the man
Legally murdered an innocent man.
His descendants will get a few pounds compo from the state i hope.. The gards and prosecutors should also be name and shamed im sure they are long gone but how can men sleep at night kowing they sent an innocent man to the grave.
What do you mean you’re “sure” they’re long gone? He was executed 74 years ago, of course they are long gone.
Death sentence should be there, just ‘death sentence’ should mean life imprisonment. We shouldn’t be hanging etc, but we should definitely have sentences where you will spend the rest of your life locked up. Serial rapists, murders, paedophiles, people with 10′s & 10′s of previous convictions for serious offences are real risks to sporty and should never be let out again.
@arnie well a person that was 21 at that time would be 95 now so some of the people involved in this case could possibly be alive… probably not.
Sporty must be protected at all costs
@Arnue – Nit necessarily.
Not much good to him now.
Not much good to him but great for his family to have that stigma lifted off their name after 74 years!
And, despite an innocent man having had his life taken from him, there are still plenty of people who seek to have the death penalty reinstated!
Harry Gleeson was framed. He was deliberately murdered for a crime he ‘had no hand nor part in’ as he said himself. Kieran Fagan has written an excellent book called The Framing of Harry Gleeson.
I hope you gave full details of the Gardai who did not disclise relevant details – these are the men who should be shamed now.
My book The Framing of Harry Gleeson published by Collins Press in April 2015 has the full story.
I feel very sorry for what happened to this man. I also feel sorry for the descendants of those who killed Ms McCarthy, and by extension killed Mr Gleeson. She had children by those men and it must be awful to think your grandfather murdered your grandmother – a terrible legacy to have.
Perhaps you stumbled on something, was Mary McCarthy murdered because she may have named a married man in the area as the father of one of her children,and if this is so were prevailing attidutes at the time partly to blame for the murder.ie.prevent a scandal at all costs murder included .
Shows how corrupt Holy Ireland was before Casey brought the whole tissue of hypocrisy out in the open. All the captains of irish virtue conspired to concoct a murder conviction against an innocent man. I wonder who had the influence to get two innocent people killed and walk away clean. What good is a ‘pardon’ now after years of ostracism.
Congratulations and well done to the Gleeson family
Interesting article here about it, the link in the article above set off my anti virus so i can’t open it http://www.irishexaminer.com/ireland/harry-gleeson-a-patsy-for-locals-with-a-secret-324650.html
Has anything changed?
Little late, innit?
Well, tell us who the man in the photo is, a certain Mr. Irish Innocence Project, maybe.
Family of man wrongfully executed by State deem it a ‘disgrace’ posthumous pardon ‘bears wrong name
Irelands past was a dangerous country and not just a different one… Farmers fighting over land and old scores to settle… It is the same now but not as bad?
The state killed an innocent man…
Confusion over Pardon.
Looks like some one has messed up big time. Pardon for Harry Gleeson is invalid. The man’s correct name was Henry Gleeson and he is still guilty of murder in the eyes of the law.
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