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THE GOVERNMENT HAS approved a 2% cap on rent increases in areas designated as Rent Pressure Zones.
It will cap rent increases at 2% or the level of inflation as measured by the harmonised index of consumer prices, whatever is lower.
If you want to check whether your area is in a Rent Pressure Zone, or whether your rent is due to increase, you can check the Residential Tenancies Board’s calculator (note, the 2% cap has not been included in this, as it has to pass through the legislative stages of the Oireachtas, and signed by Uachtarán na hÉireann before it comes into effect).
Speaking to reporters today, Housing Minister Darragh O’Brien said:
“Earlier on today, I brought to Cabinet the Residential Tenancies (No 3) Bill, which will cap rents at inflation or 2% – whichever is lower.
“We have seen an increase in inflation which I did flag back in July and across Europe it has been the case where inflation rises in the shortterm.
So these measures have been approved by Cabinet now, so effectively we’re raising rents to 2% in the future – we’ll get that bill passed in the coming weeks as well.
A previous cap of 4% on annual rent increases was replaced on 16 July 2021. Rent increases in RPZs were technically prevented from exceeding general inflation as measured by the Harmonised Index of Consumer Prices (HICP).
The Government’s aim was to bring about far lower rent increases for the estimated 74% of all tenancies which are in RPZs. But the cap was difficult to police, as many renters feared being kicked out of their homes for reporting rent increases above the cap.
Sinn Féin housing spokesperson Eoin Ó Broin has said that a 2% rent increase cap in RPZs will “do little to halt rising rents”, and said that an outright ban is needed.
Ó Broin said that new rental properties on the market are exempt and it is difficult for the RTB to monitor or sanction landlords who are breaching the rent caps.
“Just like his last attempt, which saw the government linking rents to inflation at a time when inflation was overtaking the old 4% cap, this measure will fail.
“A rental cap limited to areas in rent pressure zones won’t work. The legislation as it currently stands has too many loopholes.”
Ó Broin added that the cost of renting homes should not be linked to the market and “affordable” should be priced between €700-900 a month, with tenancies of indefinite duration.
With reporting from Christina Finn.
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They’re right it is time we as a country stood up and stopped bowing to the bullying, what has happened already is unforgivable without making things worse.
The article doesn’t make it clear, but a key issue is now the interest to be paid on these bonds.
While the bonds are held at the Irish Central Bank, any interest paid is recycled back to our country, so is effectively zero.
But once these bonds are sold to the private finance sector, the interest paid will be a real cost, and quite significant. IIRC in its usual undemocratic fashion to exert political power well beyond its mandate, the ECB has ‘discretion’ in this deal to force Ireland to sell these bonds into the private sector and force higher costs again on to the Irish people for this whole fraudulent bailout of banks.
To an extent we can forget about the principal of the loan itself, as this does not need to be repaid for a very long time. And in practice, this period, and even the modest 2% inflation target of the Euro zone, together with economic growths renders such loans insignificant in ‘real’ value terms.
A country’s debt +principal+ is rarely, if ever repaid, like a household debt would need to be, for this reason – the ‘nominal’ principal sums are simply rolled over. This is how national borrowings have been conducted, well, forever. The only real cost is the interest rate, so people should note that where countries in the deeply flawed Euro system pay, say 3% interest on loans and non Euro countries like UK, US etc. pay 2%, the Euro countries are paying a cost that is actually 50% higher, and a pure gift to the same financial sector that caused the crisis.
(What is more, sovereign issuing countries are not subject to the whims of ‘Bond Vigilantes’ because their Central Banks decide interest rates, not ‘markets’ as in the Euro system. Legalised rip off fraud by Banks in the Euro area anybody spot this? Guess who designed the Euro system….)
We should definitely tell the ECB & EU Commission to eff off, and moreover demand, together with our fellow Euro land countries suffering Great Depression levels of mass unemployment, that the Euro shared currency is radically reformed – or, if the rigid ideologues and thieves of the Euro elites refuse, get rid of it and revert to national currencies (where as issuers of our currency we need borrow from no one to restore our economy).
You’re not getting this Mike. They’re telling us to eff off. We paid the unsecured bond holders and have proven that we are not really willing to play by ECB rules, so who needs who in this game?
The Neo Nazi hoards want “their” money back ASAP. There should be no repayment until a deal is done! However, The pathetic FG/FF/Lab “ja wohl, mein Fuhrer” parties want their pensions and kickbacks and to hell with the country.
Ireland has done more than Ireland should have already. We saved the Euro and because of this we are now paying the price with little or no help from EU. Looks like the ECB would rather bankrupt us than get the money.
There is an agenda here I feel, when Ireland has been bled dry the EU will negotiate with us how they will save us by taking control over our natural resources… Watch this space!
Its time for the EU to recognise what the Irish people have done and are doing in order to toe their monetary line. The EU as an economic partnership is a good thing for all We can see now that a centralized federal EU is not This is where we are heading. The Euro currency is a way of trapping us into this federation. The Euro was never going to work unless the EU control the Euro from the ECB … It is the only way it will work. = Federal EU. FF FG LAB GREEN PD refused to recognise this and led the Irish down this path.
The Irish people have been duped by FF FG LAB GREEN PD ….
Annraoí Blaney
NewVision Ireland? – yep – my eyes are hurting after trying to read that.
Hire Ryanair’s Michael O Leary to represent us at that ECB meeting. Honohan can carry his briefcase!
O Leary had his own camaign to vote yes for Lisbon. He is as bad as FF FG LAB GREEN AND PD…
It’s a pity that My O’Leary is so obsessed with himself and his own company. With his abilities and his ‘manner’ (ie, he’d be well able to confront those creeps in the ECB) he could do a lot for Ireland if he chose to.
What a pity he has so little social conscience.
But that in itself is part of the problem. Too many of our ‘executives’ and politicians are successful BECAUSE they have little or no conscience and are more than willing to sacrifice people for their own ends.
So perhaps we should be relieved Micheal has stayed out of politics.
In fairness at least O’Leary pays his taxes in Ireland on like some other “Irish” people….
*unlike
As the 2 year blanket bank guarantee was close to expiring during the autumn of 2010, the ECB under Trichet forced the Irish government into full repayment of all bank bondholders from senior secured right down to junior unsecured under threat of withdrawal of liquidity funding from the Irish banks. The ECB fears that under increasing pressure from the Ombudsman Emily O Reilly, the Trichet letter to Lenihan will be published soon and the quisling Irish government will be forced under political pressure to repudiate the bond which replaced the promissory notes in the drunken midnight Dail coup led by Noonan. The ECB is therefore pushing for the bond to be sold to the markets as soon as possible so that it will be very difficult for Ireland to subsequently repudiate the illegitimate debt.
The ECB utterly exceeded its mandate in this matter and a legal case needs to be taken to the European Court of Justice in relation to this blackmail of a sovereign state. The ECB can make amends to Ireland by reimbursing us to the value of the illegitimate debt and interest it imposed on us.
As long as the Minister for Finance is a large bondholder the bond holders will get paid as quick as possible.Fianna Gael with the help of the Labour party as usual putting themselves and their own pension pots first.
Large bondholders are institutions who have billions or at least high hundreds of millions.
In most of the western world holding bonds is common and encouraged.
It is just mind numbing ignorance and pub drunk debate to suggest that their is a correlation between Noonan’s few bonds which are a different type.
It is up there with saying that all share are Anglo shares or AIB and there fore a massive loss or worthless.
Extract head from sphincter Paul.
So Ireland had it’s finger in the EU debt crisis dam and ‘took one for the team’ by choosing to screw the Irish people to save European bond holders and these people still dictate to us the speed at which we should be screwing ourselves to pay for their risk AND RETURN in Anglo ? Seems fair
Interesting fact I learned last week: all central bankers in the Eurozone have to take an oath to put the interests of the ECB above their own national interests.
Not that I think Honohan would need that excuse to sell us out…
The ECB is the German Bundesbank grown large. Everything is done to suit German economic needs.
The history or rate cuts and rises reflects this.
What about people on variable mortgages who saw no relief but for Banks? FG what are you going to do? Fuc$ all!!!
Those who rob Peter to pay Paul will always have Paul’s support !!!
Not this one.
Dr marie horan should go..she sounds like she has a bigger pair of balls than either honohan or noonan.!
When I stop laughing from reading the headline, ill try post something
Honohan is on the ECB Governing Council – he is the ECB.
I think after decades of having spineless yellow bellied EU loyalists as politicians….”standing up to the ECB” is not an option, we’ve cemented ourselves as the whipping boys to the bankers and any attempt at standing up to the ECB will be smacked down with more threats.
Nice “friends”! I thought being part of a union was that you can say no. Our shower of cowards will all be sorted with nice cushy jobs on the “Mainland” as long as they keep saying yes master
And the charade goes on, and on, and on….
I think the Government should take note of the ECB’s concern and promise not to do it again. It clearly cannot undo what has already been done as the action is know enshrined in legislation. It would probably require a referendum to change the constitution to allow the government to disregard an act of our parliament.
I think the Government should take note of the ECB’s concern and promise not to do it again. It clearly cannot undo what has already been done as the action is know enshrined in legislation. It would probably require a referendum to change the constitution to allow the government to disregard an act of our parliament.
So a government cannot repeal a piece of legislation they created?Complete bs.
ECB wants Ireland to hurry up and sell that debit so it is in the market and we cannot turn around and say sorry take that promissory note and stuff it to them. It’s just the ECB making sure Ireland can not escape a debt the Irish tax payers should never have been given. Pay the bond holders is the ECB’s mantra and to hell with EU citizens.
Legislation is changed all the time at the governments behest, constitutional items need referenda, ie if the European Parliament want some new law that is in contradiction to our constitution then they government hold a referendum.
Statutes and acts can be changed anytime.
Irony lads irony.
A polite way of telling the ECB to **?!”?,***
Ireland has done more than Ireland should have already. We saved the Euro and because of this we are now paying the price with little or no help from EU. Looks like the ECB would rather bankrupt us than get the money.
There is an agenda here I feel, when Ireland has been bled dry the EU will negotiate with us how they will save us by taking control over our natural resources… Watch this space!
Its time for the EU to recognise what the Irish people have done and are doing in order to toe their monetary line. The EU as an economic partnership is a good thing for all We can see now that a centralized federal EU is not This is where we are heading. The Euro currency is a way of trapping us into this federation. The Euro was never going to work unless the EU control the Euro from the ECB … It is the only way it will work. = Federal EU. FF FG LAB GREEN PD refused to recognise this and led the Irish down this path.
The Irish people have been duped by FF FG LAB GREEN PD ….
They already have control of our natural resources. We gave away our fishing waters in the 1970s. There isn’t much else left worth bothering about.
Politicians are merely members of the population, decided by the people who tell people what they want to hear. So it is the people who are at fault if you think there is anything surprising about how the euro and ECB operate.
Well before the banking crash any elementary analysis of ‘what if a bank blows up’ in Ireland would never have concluded the EU/ECB would come to the rescue. As we always knew we had to fix our own problems I don’t get why there is the sudden expectation that we’ve been duped.
We were duped by or self-belief in administrative competency in Ireland. Clearly our department of Finance and Central bank were inept. Clearly our law firms and consultants were just out to make as much money as they could and cover their own asses.
None of this was a dupe though. It would have been obvious had we competent people in charge of the country, but we didn’t. Who’s fault is that? the ECB didn’t elect our governments.
The debt write down ship has sailed
John,
The ECB put the gun to our head and told us if we did not pay off the banks they would stop financing Ireland ‘the bomb will go off in ireland…”/Trichet. The large countries bullied the small one to protect the interests of large EU banks including French & German. The ECB was quite happy to allow Latvia let Krajbank & parex bank go to the wall without demanding that all bondholders would be paid off and allowed them to join the Euro, I assume as no big money from large EU banks were in those banks. A former executive of an Anglo Bondholder (Goldman Sachs) is now ECB president. The ECB did not demand monthly figures from our Central Bank showing irish bank leveraging ratios etc so the whole thing blew up as the ECB did not perform oversight as required. The ECB did not regulate financial instruments that caused the crash incl. CFD’s, CDO’s, CDS’s etc which directly lead to the fall of Anglo. The EU allowed an incompetent body (the ECB) to manage the Euro area who failed to implement necessary oversight of banks in the Eurozone and regulation of financial instruments which are high risk.
Ok. We don’t have the money to do this. We don’t have the money to capitalise the banks and we don’t have the money to run the country.
What’s next Enda?
Bring back Fianna Fail they will save us all
Honahan is carrying out orders to the fullest and will be rewarded after retirement ..He will not and would not even consider what’s in the best interest of the Irish people he is one of a cartel of central bankers who will push for a Banking union rendering Governments useless because of Fiscal Monitorisaton. Like all Central banks around the globe they are actually privately owned . The Bankers have always dictated what way countries operate now their just making it official. Good luck with a bunch of Money Junkies addicted to profit at all costs ruling over you.. Its not gona be pretty . Glad i don’t have kids tbh.
The Irish Government made a major error of judgment in bailing out the unsecured Bondholders in all Irish Banks!
The Government was wrong in transferring these unsecured debts into guaranteed bonds for the Irish Taxpayer to repay!
The Third World War was won by Merkel and the German Government!
Ireland should leave the Euro now devalue and boost Irish Exports and create employment in Ireland. Bring back all the highly qualified Irish people who emigrated in the last 5 years!
Sadly, the Irish Government believe that the German people elected them!
Enda the Irish people elected you and your colleagues in Fine Gael. Don’t forget that!
The Irish voters will have votes at the next election!
Your austerity programme is destroying Irish Families!
Change course now!
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