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RESEARCH PUBLISHED TODAY found many renters face long-term affordability pressures as they are more likely to work in the sectors worst hit by the pandemic.
The research was done under a programme of work between the Department of Housing, Planning and Local Government and the Economic and Social Research Institute (ESRI) to examine the short-term impact of the pandemic on rental affordability and missed payments for private renters who were not previously in receipt of State housing supports.
The research found that one-in-three renters who had missed payments had faced considerable affordability challenges prior to Covid-19.
Despite the closure of many businesses during the lockdown as well as cuts to pay in many companies, the ESRI said economic pressures are not likely to have worsened during this time because of reduced spending in other areas such as childcare, transport and recreational activities.
However these savings are “very short-term” and unique to a time in which households had been advised to stay at home and restrict their movements, the research stated.
“Many renters face longer-term affordability pressures that are likely to worsen quickly, as necessary expenditure rebounds quicker than incomes,” the ESRI said today.
“As renters are more likely to work in sectors badly hit by the pandemic (such as accommodation and hospitality, this may pose longer-term employment challenges if these sectors are slow to recover.”
Last week the government confirmed the Pandemic Unemployment Payment (PUP) is to be extended until April but the support will be tapered over time, eventually reducing to the standard jobseeker payment of €203.
Rachel Slaymaker, author of the report and a post-doctoral research fellow at the ESRI, said any tapering of the State income supports will “have a disproportionate effect” on renters who were previously working in these sectors.
Speaking about the research today, Housing Minister Darragh O’Brien said it will guide policy, in particular the the measures taken to regulate the rental sector.
“I urge households experiencing difficulties making rental payments as a result of the pandemic to apply for Rent Supplement and I will stress that this government is committed to improving the standards, security and affordability for all renters,” he said.
Today the minister brought a new bill before the Dáil which he said was aimed at protecting tenants. For tenants who are unable to pay their rent due to Covid-19 between the passing of the bill and 10 January next year, the legislation provides for an increased notice of eviction period from 28 days to 90 days.
In the longer term tenants will have 28 days to pay rent arrears before a notice of termination can be served. The ban on evictions that was put in place during the lockdown will not be extended.
Minister O’Brien said anyone who receives a termination notice this year cannot be evicted from their property earlier than 11 January 2021.
Social Democrats TD Cian O’Callaghan said it is important that the huge collective national effort to suppress Covid-19 is not undermined now by government proposals to “bring back evictions on most grounds for all renters”.
“More than 75% of notices to quit are issued by landlords who want vacant possession of their property and there will be no protection under the Government bill for any tenants served with a notice to quit on these grounds. There is absolutely no justification during a pandemic for putting tenants at risk in order to make more homes empty,” he said.
“I am tabling a number of amendments to the Residential Tenancies and Valuation Bill 2020 to improve security of tenure for tenants and to make the private rented sector more viable and secure – I am calling on the government to accept these amendments.”
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Not to worry everyone, increased rents and increased house prices make for excellent share prices for global REITS and we know that’s all that matters.
@SkepticalHippoEyes: which REITs have performed well lately? You could make a fortune by investing if you are so sure of profits coming their way.
The July stimulus cost €7 billion and we can’t afford to protect tenants from losing their homes. Tax relief for tenants would have cost very little, and made a huge difference to most renters. Where are the priorities of this new government?
@Brendan Barr: where they always are, somewhere else
@Aindriú Purfield: They just shocked they managed to hold on to power
*They’re
Please, Journal, give us an ‘edit’ button, for the love of Jaysis
Elephant in room , the amount of foreigners taking up accommodation here in recent years. This is pricing young Irish off the market.people living at home in late 20s and 30s not conclusive to a healthy lifestyle. Watch populism grow, as birth rates fall.
@Ruairi O Gorman: sounds like you’re ready to join in on some populism yourself.
@Dave Thomas: Maybe so Dave, having a income over the industrial average and paying almost half my my weekly out goings in rent while trying to save for a mortgage has a tendency to do that.
@Ruairi O Gorman: well then blame the government and their housing strategy of keeping supply low and prices high so ivestors can keep profiteering.
@Dave Thomas: You’re missing the point, our economy is creating a lot of jobs due to FDI, this is great but a lot of the jobs are being filled by southern Europeans etc that are young are happy to have a job (unemployment in Spanish youth is over 30%) and happy to pay half their wages in rent.They aren’t saving much because this isn’t home. Most will leave and go home when they have enough for an apartment . All the while the Irish youth are dealing with spiraling rents and home costs created by the mass influx of people, you can’t build fast enough to mitigate this .
@Ruairi O Gorman: Ah the blame the foreigners schtick.
@D’oh: No that’s gaslighting on what i said , People will always go where the grass is greener nobody blames them. Its up to the government to protect the people it elected to serve.
@Ruairi O Gorman: nothing stopping you training to be able to do the jobs they come to do. You may notice how many Irish people went to other countries taking jobs the locals could have filled and living in places they could have lived in. To complain about them coming over here getting high salaries AND PAYING HIGH ICOME TAXES. They also add more again to the economy by paying the high rents as again that is again PAYING HIGH INCOME TAX. This money means we can afford social services and public amenities. If you wanted Ireland to remain in the past with poverty where nobody had anything then we could not entice foreign businesses or skilled labour. Not all boats rise with the tide but a lot more do and getting the balance right is tricky. But one vital thing is do not blame immigrants!!!
@Ruairi O Gorman: land of milk and honey come and get it ,those who can’t afford it you must of being born here.
And yet we can hand new houses to people who have never worked. Generous allowance to furnish it and school meals delivered to the door for their antisocial kids!
@Thomas Sheridan: Yea, and we get to go to work everyday to pay for them. Hurray!!!
Of course it will and the situation is not the fault nor responsibility of landlords. If you add punitive and more restrictive measures to landlords to force a situation where they take a financial hit for the government failures you will make it all worse. Landlords are leaving the market in droves, I think 6000 a year are being lost. Any other industry with a shortage would be trying to retain supplier not make more leave. That is what current policy is doing. People don’t care about landlords and I get that but if you don’t care about them and complaints the situations gets worse. For those that say the property doesn’t disappear the issue is occupancy drops so less to rent and more looking is the result when a property leaves the rental market.
According to property agents demand is still very high and people are willing to pay 2k for 2 bed apartments. I went for viewing last week 3-bed house 2350 per month few couples came mainly indian people. I asked agent if there is any price reduction on this house he says from 20 houses he has at the moment 16 are gone already so I am not sure if there is any affordability issues.
As the fella always says, and sure these are the good times. Just wait a year or two.
“As a young person on average income I can’t get a mortgage to buy my own affordable home but it’s ok for me to pay rent and pay some one else’s ….”
“All Irish citizens should be able to afford their own home, on average incomes, in their own country.”
https://www.change.org/p/irish-referendum-on-family-home-special-status
A neighbor of mine lost her job and got another with less hours,she ask the agents for a rent reduction the answer was no she recons they didn’t even ask the landlord…. because the agents would also have to take a reduction.
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