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LANDLORDS ARE FLOUTING laws around rent increases for properties which is putting extra pressure on tenants, a leading housing charity has warned.
Threshold said that Rent Pressure Zone (RPZ) legislation is not being followed by some landlords and that this is having a negative effect on tenants looking for a place to live.
The charity called on government to introduce a publicly accessible rent register which would record every change of rent on a property so prospective new tenants could know what they should be paying.
The call comes following the release of the Daft quarterly rental report which showed record high prices and record low properties available to rent across the country.
Rents nationwide jumped 11.8% in the first six months of the year, with the average asking price for a rental nationwide now €1,159 per month.
There were just 2,930 properties available to rent across Ireland on 1 August, the lowest number ever recorded.
Threshold CEO John-Mark McCafferty said that the report showed the urgent need to increase the supply of affordable homes in the private rental sector.
The government last year introduced rental caps laws for some areas around the country. Under the legislation, certain areas are designated as Rent Pressure Zones.
In these zones landlords are not allowed to raise the rent by more than 4% a year. As well as this, a new tenant in a property can only be charged 4% more than what a previous tenant was paying.
However, McCafferty says that this law is being broken by landlords.
“It isn’t legal for a landlord to evict a tenant and then look for a very substantial rise afterwards,” McCafferty told TheJournal.ie.
“We’re hearing that people who want to rent and go to rent either don’t know for sure whether the rent is correct and they can’t challenge it until after the fact.
And there will always be someone at the viewing who is able to pay a higher level because of how few properties are available.
McCafferty said that a publicly accessible register of rental prices would help to combat this.
Homelessness
The lack of available properties in the private rental market has been highlighted by homelessness and housing charities as one of the main issues driving family homelessness.
Latest figures from the Housing Department, found that there were 1,365 families with 2,895 children homeless across Ireland in June.
According to research from Focus Ireland, the vast majority of families becoming homeless is as a result of the immediate crisis in the private rental sector.
This is a view echoed by other organisations in the sector. Earlier this month, charities strongly criticised government after Census 2016 data showed a significant increase in homeless numbers since 2011.
“More affordable private rental supply is badly needed to prevent more people from becoming homeless and ensure that people can leave homelessness behind,” said Niamh Randall, spokesperson with the Simon Community.
Threshold’s McCafferty said that lower-income families are being “priced out of the market”.
Charities have also blamed the ongoing crisis on a lack of affordable and social housing being built over a sustained period of time.
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It is awful for low paid workers. However no one seems to want to address the elephant in the room – why do families with either 1 or 2 parents not working deserve to be housed in any cities centre?
Surely workers should get priority.
If you are living government subsidised housing in a city centre location and haven’t worked in >5 years you should be made move to a more rural location.
Low paid full time workers should get priority.
@Theunpopularpopulist: I get your point but I doubt any honourable worker wants to take over a premise in North inner, for example.
@psychiatrist: I’ll take it, in a heartbeat. It would be nicer than my current commute
@psychiatrist: if you’re on the social housing list it should be a one time offer regardless of location.
@psychiatrist: I’ll take it without a second thought
@Theunpopularpopulist: There is currently 19,700 people on DCC social housing waiting list. There is already 45,000 social housing units in DCC area out of 220,000 homes total. Does not make sense. Workers are being forced to pay ridiculous rents or commute long hours to accommodate the work shy. Currently 15% of total population are in social housing with 5% on waiting lists. I feel like a fool for working full time, trying to provide for myself and family, and contributing to society.
@psychiatrist: I see you’ve never heard of gentrification. Go visit Smithfield.
@Jimbo Jones: If you think Smithfield is an example of gentrification you don’t know what it means. The area was redeveloped in a section. The rest of the area is still a social black spot with lots of poverty.
Rathmines became gentrified.
@Theunpopularpopulist: I’m afraid that’s not the elephant in the room. That’s just the distraction.
@Chucky Arlaw: i not sure about but them prices are nuts I know when I moved to the *ssh*le of knowhere back in 2006 it was cheaper to rent there and commute the three hour drive .
Then the landlord ( a builder) had a small issue with too much swindling and the bank took the house threatened me and or I buy or get out . I bought it as it is hard to find a place that suit me , then the whole shibang went to hell , the country my business and the actual house fell to pieces with water damage on the snow.
Is inhabitable . Is still all I got . The insurance company screw me over and the builder destroy my home. Now the bank gave me a deal under the insolvency program yet same bank is threatening me with court yet the same bank sold my derelict shack to American vulture fund .
I continue to pay . I have no idea of the future . All I know is still I would rather have a job full time in dublin and commute . Basically the moral of this story is you’re screwed either way . At least the drive is pretty.
@WilhelminaMCallaghan: did I read you right – a builder threatened you to force you to buy a house?
@Joseph Bloggs: Receiver offered her the chance to buy it before they put it on the market.
Same old story. How about making the numerous Accidental Landlords pay 20% instead of 50% tax? Just like ordinary Landlords. Then they won’t have to ask so much rent. Mind you, they are still not making any profit at all. Daftest country on the planet..
@psychiatrist: Ordinary landlords pay the 52% on the income it is only the investment funds that get 20%. I believe they only get that on NAMA purchases too. If you are self employed you can easily pay an extra 1% on rent as well.
@psychiatrist: Everyone pays 52% on tax. Even when you own your own company, when you pay yourself you still pay the 52% tax. Jesus like. Screw it, why not just reduce all renters taxes to 20% while your at it.
It’s a private rental market. The government should build there own houses and then they can get involved.
Do other business keep a published log if price changes?
When the recession hit in 2008 tenants weren’t complaining about rent drops.
If people refused or couldn’t pay the prices then rent will drop.
As for 11.9% increases , it’s nothing compared to state prices. Huge increase in fees for getting birth Certs, etc
@Fluich Go Craicean:
Leo will might take a closer look at it all when he’s finished his Cornetto.
@Fluich Go Craicean: Very well said. No one complained when it was other way around.
@Fluich Go Craicean: Are you seriously saying that 3k extra a year in rent is similar to the fee to getting a birth cert? And that tenants can refuse to pay prices? Jesus Wept.
@Ro Brett: That is the neo-liberal, Ireland-hating dogma spouted by Fine Gael.
@Ro Brett: supply and demand, the market price is Set by what the market will bear.
I’m saying all state charges have increased significantly, not just birth certs, why did the government set a 4% cap on their increases?
@Fluich Go Craicean: When the average rent hits 60% plus of the average salary, if say that’s the time for some market intervention.
@Denise Daly: Except the landlords and the rent to let sector. What kind of world would we be in if people complained because prices were dropping!! No one is saying Landlors should be generous but it is the Govts responsibility to manage social policy you cannot have a growing economy and no where for the workforce to live. But the laws of economic gravity are true what goes will come down and we some hell of a bang.
@Ro Brett: have you looked for an increase or a new job, what about providing your own house?
What about moving to some where you can afford ?
The government heavily tax landlords and keep adding charges aswell as increasing costs
LPT, USC, PRTB fees, PAYE , etc.
@Fluich Go Craicean: Lol Mate, I’m not worried about myself, at this point I could afford a few mortgages.
I’m more worried about what happens to the overall economy when people can’t afford to buy things because they’re using all their money to pay rent.
@Fluich Go Craicean: what happens when the tenant runs out of money
@EUGENE 70 percent: get a new tenant, ideally get one that has a monthly income so that he doesn’t run out.
@Ro Brett: isn’t that what’s happening ?
Another article on blaming the landlords, let’s defect from the true issue.
Where are all the houses that the government promised?
Why aren’t people buying/building their own houses?
The fault of this is with the government and the government only.
@B9xiRspG: absolutely.
@B9xiRspG: People aren’t buying / building as houses are too expensive.
The government is not building.
And the parasitical free market is extracting its pound of flesh.
A lot of people cannot afford to build their own house due the rule of only being able to give a mortgage of 3.5 times ur salary so for many buying is not an option even with fairly decent salaries.. then rent costs so much that it is incredibly difficult to get together any sort of deposit or make up the rest so it’s a catch twenty two really! Then we wonder why people are pissed off with it all!!
@Colin Morris: That’s exactly my point, the government is responsible for housing it’s people not the free market. If you leave it up to the free market then what we are seeing now will happen. don’t blame landlords – blame the government that can’t get anything right – social housing, gardai, hse etc.
@niall o beachain: Some landlords have purchased new houses to rent so the rent will have to be higher than the mortgage which people as you pointed out can’t afford anyways so its a no win situation.
Who put those rules in place about the 3.5 times your salary? the 10% deposit? Was it the landlords or the government?
Who decided not to build social housing? Was it the landlords or the government?
Who allowed all those Nama houses to be sold? Who allows all those council homes to sit empty because of budgets constraints while paying hotels and B&Bs thousands a month to house someone.
My point is that the government keeps spinning this as a landlord fault – all high rents are to blame for the housing crisis. They did similar with the water rates – pushing the blame onto other groups. Was it the landlords or the government?
Look at it this way – if all rents were halved tomorrow, would it solve the housing crisis? The hell it would, there just not enough houses out there and it’s near impossible to get a mortgage to buy one.
The government needs to take responsibility and address the issue themselves and not expect the private sector/free market to do so.
@jimbuckley Barret I agree completely with ya!!
@B9xiRspG:
That sums it up. 100% agree.
@B9xiRspG: Do you really expect a neoliberal government to take any responsibility for its citizens welfare? Be it in housing, the health service, public transport, anything that was a public service is of no interest to a neoliberal government. Public services must, under neoliberal dogma, be privatised. If you can’t afford to pay the cost of privatised services you’re labeled as a parasite, a sponger, a freeloader.
Corporate welfare is a neoliberal government’s only interest.
@Colin Morris: what free market? Do you think rent caps, building height restrictions, duel aspects rules, etc are free market?
Jim, completely agree. So far today the govt advice I’ve heard re housing issues particuarly with the college year about to start has been “parents of students looking for accommodation should get involved” (um right, ok), rent out a room in your house for a student (oh yes that’ll sort it) and let’s tax 2nd homes to sort the housing crisis. It’s all to distract from not tasking councils and corporations to build more houses!!!! And not even very good distraction at that.
@B9xiRspG: Hi Jim- wouldn’t happen to be a landlord would you? Some of your comments do seem a bit ignorant like why don’t people buy/ build their own houses- you look like your in the generation which benefited most from this- easy loans / high income / second investment property. All of us are paying for that. True the state should be building more affordable property – but there is so much reliance on private sector renting – landlords and estate agents do exploit the issue and are quite active politically and in the media. Has a property developer ever given a brown envelope or a golden handshake to a politician ? Never !
While the politicians are landlords, this situation will never be rectified.
@John Murray:
Home Sweet Home need to print a list of landlord TDs prior to the next election.
We must vote them out.
At least leo is gettin a handle on this crisis by attending various marches around the world
@Is Mise jay: What Crisis? This story is about a particular group’s opinion, they’ve presented no actual evidence to back up that opinion. And you want the Taoiseach to cut short an important diplomatic engagement to address someone’s opinion.
This is Ireland. Does anyone expect anything better????
@Vincent Sharpe: better? What is better? I’ve heard of more expensive but never better. Funny word that.
@Vincent Sharpe: And why shouldn’t people expect better? Is it too much to ask that when governments enact laws or legislation that they actually follow up on them and somebody bothers to check compliance.
They have no issue with sending out half the gardai in the country hoping to catch motorists commiting a traffic offence but balk at monitoring the compliance of landlords, now why would that be?
@Vincent Sharpe: how much will I pay you for better, I’ll top whatever price you were offered last!
We need more incentives for landlords to get into the market rather than selling up and cashing in
@Seamus Brady:
The market is the problem.
The market has known about this impending disaster for years.
The market is not part of the solution.
Aggressive state intervention is now desperately needed.
@Colin Morris: state intervention won’t solve anything
@.: Yes it will.
A massive build of state owned, council controlled, houses for rent via means testing is the solution to the national housing emergency.
The market has no incentive to fix this.
The market is the problem.
@Colin Morris: They would turn into slums within 10 years. That is why there has to be integrated housing.
@Kal Ipers: If they were rented by low paid workers they would not turn into slums.
Keep the recovery going!
Having been a renter I would have no confidence in Treshold or other tenant rights groups. A few years ago they got all the affordable accommodation of the bedsit type closed down leaving thousands of tenants on the streets. They also complained bitterly about landlords receiving rent allowance. Now in a complete u turn they are trying to force landlords to take rent allowance. I don’t think there’s any solutions to be had from these people
Don’t worry markets never fail and cash is king!
@Dave O Keeffe:
The free market in Ireland is a disgraceful failure and has failed this country in terms of housing.
Aggressive state intervention and regulation is now desperately needed.
The market has failed Ireland. It’s time to replace the market.
@Colin Morris:
The free market in Ireland is supported by the Government we have.
@Alan Scott: and every one we’ve had
@Colin Morris: How is it the free market responsibility to house the people of Ireland?
Here I thought it was our elected officials!
Of course they are because landlords are greedy pusbuckets who offer slums to desperate people for 4 figures a month.
@DaisyChainsaw: Yep all landlords are and tenants are perfect!
No one is forcing anyone to rent. They can go and purchase a house themselves if they want or if they qualify they can apply for the social housing that the government is providing….
@B9xiRspG: “Let them eat cake” eh?
@B9xiRspG:
There are no affordable houses for sale.
The market is failing in all sectors.
The market is the problem.
@B9xiRspG: are you living on another planet, not everyone can afford to buy /build, low wages, low income means that any money you earn is paying for rent, bills and even food.
Oh, sure you will say save, but how do you save, when you are struggling to keep up with your rent payments. 75% of wages are paid in rent, then the other 25% in household expenses.
Get real, walk a mile in my shoes, life is no fekking holiday.
@David Patrick: the way I see is you either eat or pay bills been like that a while . This recovery they talk about is for their lot . People with financial stability has no idea how those who live day to day exist.
How about a massive fine for a landlord that breaks the rule. Whats the current penalty breaking this “law?”
@Chris: A fine I believe.
@Chris: How about serious jailtime followed by comopulsory purchase of his property after.
@Colin Morris:
Can we have serious jailtime for problem tenants who don’t pay their rent and smash the place? Rather than the whinge brigage finding a way to excuse them.
@Colin Morris:
Whenever there is a article on the housing crisis there is a good chance someone will bring up compulsory purchase orders. If the government CPOs your property they have to pay FULL MARKET VALUE. The vulture funds and many accidental landlords would be delighted!
You can’t correct crises by introducing reactionary laws one-by-one that affect the perimeter on the surface. You’ll only make it more broken. The only way to fix it is to change the environment of the issue and fix it from the core. Absolute numbskulls in power.
the solution to Ireland’s housing national emergency does not lie in the private rental sector.
Massive builds (about 50,000 housing units for Dublin alone) which will be state owned, council operated and means tested are immediately required.
The market has failed and alternative solutions are now needed.
@Colin Morris: and when the houses are wrecked the tax payer will pick up the tab again I suppose and I bet you think these should all be in a prime location?
While the gombeens who save and pay for their own homes (to have them sold eventually to pay for their nursing home care) should all live a 1 hour commute away.
Why would anyone work in this so called socialist utopia you propose?
@Colin Morris: yes just not in your backyard though eh ?
@Theunpopularpopulist: Social and affordable housing is the model that works in Germany/The Netherlands/Austria/France and elsewhere.
It is absolutely essential that we implement a model like this in Ireland.
Just to reiterate the free market in Ireland is an utter failure and the cause of our national housing emergency.
The free market must be replaced.
@Colin Morris:
Don’t fall out of bed while your dreaming.
Doesn’t have to be just given to people on welfare what about a state owned rental company, that allows young professionals and families who work but cannot afford to build their own or buy their own houses as they are only allowed 3.5 times their salary in a mortgage, to rent and save?? Would you be in favour of this?? Or sure we just let 30 year olds live with their mas if they are lucky to have that, the rest of their lives and call them lefties and trots when they are upset about the whole situation.
@niall o beachain: can you imagine how well run a state owned rental company would be? Are there any well run government controlled industries?
Exactly. None.
@Joseph Bloggs:
I hear John Tierney is free?.
In all seriousness having worked in a semi state for 16 years one thing is certain, under NO circumstance give a semi state a contract as big as that, the houses would wind up costing a million each!
Put it out to tender like the motorways.
Lower the supertax being inflicted on landlords and impose fines on those overcharging tenants. It’s not rocket science, If something is not worth the venture then no one is going to invest.
@Rob Cahill:
Wrong.
Building state owned housing for rent is the answer.
@psychiatrist: I currently rent in North inner city, I work in a fairly decent permanent role, so too does my wife.
We would have no issue living around Summerhill, ballybough, North Strand etc if the government gave us an affordable option.
I have lived in North inner city 2 years, there are issues but in every capital city the central zones will always have that.
I am surrounded by people from all walks of life and the majority are really decent, friendly, normal people.
Don’t be too quick to judge. You’d be pleasantly surprised if you lived here
Two things – Get rid of height restrictions for residential between the canals and in other areas like Sandyford and treat being a landlord like the business that it is – items can be expensed and there is 12.5% corporation tax on any remaining profit. Guarantee that will result in a huge increase in supply to the market.
@Fred Jensen:
In fairness Fred as someone that works in the sector i would be delighted if the did that but realistically all that would happen is a massive jump in house purchase prices as investors piled in.
We need more properties built, nothing else will make any difference.
@P.J. Nolan:
If it’s friendly to investors, then you’ll see more supply come to market. Which is what’s needed.
@Fred Jensen:
Why cut straight to the point then? We need more houses.
Some of them should be owned by investors, some owner occupiers, some affordable housing etc etc but bottom line, more houses
@P.J. Nolan:
More private accomodation and more accomodation geared towards young single professionals.. Government can build housing outside the city centre
If you’ve no intention on ever working, or ever even trying to work, then you can fcuk off the social housing list. You don’t deserve a house because you’re a lazy scrounger with no work ethic. Work = money, that’s how things work unless you actually cannot work due to disability etc.
Imagine an Ireland where the lazy, the self-entitled and the scroungers actually got all of their perks and privileges taken away from them until they could provide proof they were looking for employment. Then they can struggle with childcare, rent, bills, insurance, tax etc. just like the rest of us.
Some people on low incomes are earning less than the “Full time mammy to me angles xxxx” (deliberate typo) and still have to pay rent etc., while the full time dole mammies go collect their mickey money and go get a full head of extensions. Generalisation, yes. Actually untrue, no.
@Rachel: you are over privileged and think you are better than everyone. You owe the tax payer more than they owe You!
@Rachel: actually, both untrue and a gross generalisation. Stop feeling sorry for yourself and projecting your anger onto people who have nothing to do with whatever is making you so bitter. If you have to struggle to own your property at least you will one day own it. You are making a choice. There are people working today who can’t afford to rent, couchsurfing and staying with family members. So what if a mother wants to parent her child full time? When did parenthood become something to be ashamed of? Your work ethic doesn’t seem to be making you happy…..
“Republic of opportunity”
@Mr Phil Officer:
Ha ha ha ha!
The whole chaos created by American/Canadian Investeors who are buying the whole blocks and putting the rent of their own choice and in the the meanwhile charging for management fee also.
Yep it’s all them nasty landlords fault let’s blame them . Nothing to do with decades of inaction from various governments
With such huge demand and little or no supply, why does no one want to build? Is it the cost of land/planning/materials? Every year we hear students have no accommodation. We are supposedly vying for workers to come here after Brexit, where will they live. We have people sleeping in doorways, the lazy answer to everything is more taxes. Ordinary people can’t afford more taxes. They make the best of their wages, not receiving expenses on top of large salaries. We should have innovative politicians considering they are paid very well,
instead we get the same tripe year after year.
Government should be immediately called back and reverse these rent hikes and put in place rent caps lower than before the hikes,it’s time the greedy faced consequences and politicians defended the public.
@mdmak33: The problem is the gov keeps working off percentages, the rent caps are at a % of the last rent, affordable housing is a % of the average market rate. If they just came out with flat limits per sq meter with weighting for area they can stop it overnight. Won’t solve the housing crisis but will solve the price gouging.
Disgraceful from our “keep the homelessness going” government. Totally foreseeable that this would happen, but it suits their landlord and stakeholder friends, who are happily lining their pockets with the rising rents and contributing to the FG election fund with the small change. I think thats what governments call a “win win” situation.
Why city council allowed use of residential properties as airbnb, hotels or for business use. If there is ban for use residential property for business use rent crisis will solve automatically. Where I live half of the building is used as hotel.
Should there be a system where landlords sell the house but the house stays in rental system.
For example setting up companies to own/supply/manage rental accomodation.
Expanded housing associations.
Allow affordable purchase and rental through housing association.
I mean let me think whose a better solution for the future – Tuath who’ve supplied 500 units in 2016 to social housing sector and 500 this year.
Or small landlords who don’t think its their problem to fix. They are actually right it’s not their problem. But the fact they think that means they aren’t the solution.
See we need housing supplied by people who are actually interested in sustainable housing solutions.
We need to look at cost of housing provision and we need to have rental rates that have some link to cost of provision.
So a monthly rent is cost of provision plus say 20 percent margin. Not neccessarily as a law but as sensible business practice.
The idea of spending 300 k in rent alone over 20 years (based on 1300 euros a month) when the 1st day price of the home to buy is a tricky one.
The basic problem AGAIN and AGAIN is that we need to accept the fact that tenants have a limit to what they can afford each month.
Anyone that has a problem with that should leave the provision of housing to people who accept that reality.*
*I don’t know enough about economics – all I know is you can’t have 2 k rent if household income is 1600 per month.
That would be a loss of 400 a month on the rent a month – clearly unsustainable. And nothing to live one
I have lived in a few of the old style bedsits which were dumps. I also lived in some that were fine. For students or low paid single people they served their purpose. When the bedsits were abolished low income people were then faced with higher rents. Proper regulation of rented accommodation would be a good start. South Dublin Council have a box ticking exercise where they inspect quality accommodation in Rathfarnham Knocklyon and then can say they have inspected so many properties. Pity they dont check out their own properties
The more the media highlights the fact landlords are ignoring rules without punishment, the more landlords will be tempted to ignore the rules
@ginger tomatoes i9:
These stupid rent rules are driving landlords out of the business thus pushing up rents
Politicians are notionally public representatives. Therefore they must do what is right for the people.
The people want public social housing built so lads go and. Hold social housing now. It’s not hard, we did it years ago when there was no money in drimnagh, crumlin etc. Do it or get out
have your say