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More regulation of short-term lets on the way as charity says renters left with 'no options'

The Housing Minister at the weekend said the government is planning to take action in the coming weeks.

THE HEAD OF a housing charity has said stronger enforcement of regulations on short-term lets is needed to address the crisis in the rental sector.

John Mark McCafferty, CEO of Threshold, the national housing charity, told RTÉ’s Morning Ireland that there has “never been so little in the way of available longterm rental accommodation”. 

Despite new regulations on short-term lets in 2019, he said the number of short-terms lets has increased while there is still an “abject lack of longterm rental housing”. 

“Our advisers are taking to people who just cannot access accommodation in the private rented sector, they’re worried about losing their accommodation if they’re in some kind of dispute, they’re worried about a notice of termination because they have no options,” he said.

McCafferty  said a stronger enforcement of the regulations directly through the platforms that property owners are using would help to address the issue.

Yesterday Minister for Housing Darragh O’Brien told Newstalk’s On the Record with Gavan Reilly that the government is looking at some measures to restrict the letting of full properties and second properties for the short-term letting market. 

“The regulations that went back to 2019 actually do preclude people from letting out a second property for more than 90 days in any given year unless you got planning permission specifically to do that,” he said. “That’s not necessarily being adhered to.”

He said regulation of platforms would mean that property owners would not be able to advertise an apartment or house unless they had a registration number from a local authority. 

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    Mute MikeOM
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    May 2nd 2022, 10:27 AM

    “The government is planning to take action in the coming weeks”. Says it all really…

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    Mute Jim Buckley Barrett
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    May 2nd 2022, 10:34 AM

    @MikeOM: just like the 20,000 houses they promised

    Issue isn’t with landlords, issue is with supply, if the government built the promised houses, rents would drop, etc

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    Mute Ian O'Donovan
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    May 2nd 2022, 10:41 AM

    @Jim Buckley Barrett: There are 12 unfinished houses out by me at the bottom of a village, there since the boom, absolutely shameful. Frank O’Connor Derelict Ireland on Twitter highlights any and all empty properties across Cotk.

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    Mute Jason Dawson
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    May 2nd 2022, 1:24 PM

    @Ian O’Donovan: exactly the same in tullamore, laying vacant since the crash.

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    Mute Geoff Bateman
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    May 2nd 2022, 2:01 PM

    @MikeOM: yep only had years to sort it out… unreal

    31
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    Mute Jim O'Sullivan
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    May 2nd 2022, 3:01 PM

    @Jim Buckley Barrett: Of course rents would drop, but the problem is that half of TDs are Landlords.

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    Mute Mickey Finn
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    May 2nd 2022, 6:10 PM

    @Jim O’Sullivan: I doubt TDs are preventing the building of houses to improve their position as landlords and impoverish their constituents. They’re not evil monsters successfully hiding their nature from voters.

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    Mute Anthony Guinnessy
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    May 2nd 2022, 11:04 AM

    More regulation for landlords, that will make them more likely to rent to long term tenants. The problem is its not in any way appealing to rent a property in Ireland. The amount of tax you pay means you barely cover your expenses. When you get bad tenants they are impossible to remove and the notice you have to give is ridiculous. If you want to keep rent low for good tenants you are penalised when it comes to rising it due to rent pressure zones.

    All renters think landlords are milking it, so answer me this, if its so good why are landlords selling up as soon as they are no longer in negative equity?

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    Mute Liz O'Neill
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    May 2nd 2022, 11:34 AM

    @Anthony Guinnessy: Exactly.

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    Mute Dean
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    May 2nd 2022, 12:25 PM

    @Anthony Guinnessy:
    Who pays for all of that? The tenant pays.

    Tenants pay the mortgage, bills associated, and tax. Tenants pay tax on their own wage, and taxed again on rent when they hand it to the landlord, if the landlord ‘earns’ over the threshold.

    And if anyone is to get tax back, it should go directly to the tenant. Not the landlord who got handed money.

    Tenants already pay more than 100% of a landlord’s mortgage. How much more can they give? Average rent nationwide is now 59% of the average wage, nationwide.

    You could leave the market to free up those homes. To be used as family homes. Not as a side business.

    You don’t want to rent out in Ireland? You shouldn’t hoard more than 2 family homes.

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    Mute Jo H
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    May 2nd 2022, 1:06 PM

    @Dean: not strictly true, and also cyclical. I worked in auctioneering for 12 years, after last crash the vast majority of LLs were only in the market because they had to move home or emigrate to survive. I saw 3 bed s-det houses rent for as low as €625 per month, some of these LLs would have had 1,200-1,500pm mortgages on these houses if they bought at the height. So after getting €600pm and paying upwards on 40% tax (20% if non res.) they still had a shortfall of €1000 pm to come with from already reduced means just to try to hang on to a property that was only ever intended to be their own home. No-one was jumping up and down to help them then. I would honestly hate to try to rent or buy now, I don’t know how anyone does it, but blaming LLs instead of a lack of infrastructure is wrong

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    Mute Geoff Bateman
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    May 2nd 2022, 2:03 PM

    @Anthony Guinnessy: more GOOD Tenant than BAD ones I’d say by a long chalk

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    Mute Mary Fitzsimons
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    May 2nd 2022, 2:27 PM

    @Anthony Guinnessy: landlords are selling because housing prices are outrageously high. Prices have risen above those of the last boom which trapped landlords in negative equity.

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    Mute Anthony Guinnessy
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    May 2nd 2022, 4:47 PM

    @Dean: of course the Tennant pays for the mortgage why would a landlord rent a property out otherwise? Do you think they should take a financial risk of investing in a property for no gain? Were you around in 2008 – 2018? People lost everything on properties they had bought and couldn’t afford to male repayments on. They moved home to live with parents while renting their properties below cost to other people to live in.

    You say sell up if you don’t want to rent but that is what is happening en mas, that’s why the rental problem is getting so much worse and why rents are climbing ever higher. You renters need landlords to invest in the market to provide rental accommodation for people who don’t want to or are not in a position to buy a house themselves but unfortunately the regulations in this country and tax regime make it not worthwhile for landlords.

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    Mute Dean
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    May 2nd 2022, 7:55 PM

    @Anthony Guinnessy:
    Who would pay for your mortgage if you didn’t rent out these surplus homes you buy?

    Tenants don’t want to pay for a stranger’s mortgage plus profits, but housing policies give them little choice. Yet you complain. Getting a free house handed to you.

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    Mute Anthony Guinnessy
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    May 2nd 2022, 8:52 PM

    @Dean: you’re not getting it Dean. If I didn’t buy the house it wouldn’t get built for the person that wants to rent it. Mot everyone can afford or want to buy a house. If landlords didn’t buy houses then developers wouldn’t build them and renters who arent in a position to buy would have nowhere to live! People don’t invest in property to provide a home for someone else they invest to get a return. If they aren’t getting a return why would they spend 60k to 100k on a deposit just to provide someone with somewhere to live, they’d be better off leaving their hard earned money in the bank.

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    Mute Joe Costello
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    May 2nd 2022, 11:42 AM

    I rent to hap tenants, what people don’t know is,when your tenant stops paying their rent to the council, hap stop paying to you.lts up to you to try to get the tenant to pay if they dont it’s up to you to get them out.no help from Hap,its your problem. That’s why some landlords dont do Hap,should Hap not pay their rent till they leave the property that would be fair,and make it clear they wont get Hap again.

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    Mute DK
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    May 2nd 2022, 11:46 AM

    @Joe Costello: Agree 100%. Its a bonkers system with all responsibility and risk with the landlord. The problem is if a politician actually anything slightly negative about any tenants, particularly social or HAP tenants they’d get hounded by the public and media so none will go there.

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    Mute Sean
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    May 3rd 2022, 8:26 AM

    @Joe Costello: Ireland is alone in amending our Equality Act so that a failure to rent to HAP tenants is a protected attribute up there with age, gender, race.

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    Mute Patricia O'Brien
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    May 2nd 2022, 10:58 AM

    Land Lords are selling up as they can get high sale prices, the issue is not with landlords, its with the fact that there is not enough social housing being built because fffg don’t want to build social houses, thry don’t believe in supporting people by providing houses, end of story.. now they want to blame landlords…

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    Mute Mickety Dee
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    May 2nd 2022, 12:30 PM

    @Patricia O’Brien: The government can’t just magic up more builders. If they contact more social houses to be built, the private sector issue will be exacerbated. More housing is needed both private and social but no easy way to solve it

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    Mute The Guru
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    May 2nd 2022, 12:36 PM

    @Mickety Dee: they could start by investing in more apprenticeship schemes. Might help with all the social problems we’re having too.

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    Mute Dave Barrett
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    May 2nd 2022, 1:09 PM

    @The Guru: Times have changed. Hard graft in construction doesn’t appeal to someone coming out of school. It’s all about what job will pay the most with out the hard graft. Many builders who were crucified from the last recession have not gone back to construction. Can’t say I blame them.

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    Mute Jason Dawson
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    May 2nd 2022, 2:35 PM

    @Dave Barrett: very valid points.

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    Mute Mickey Finn
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    May 2nd 2022, 6:28 PM

    @The Guru: Unfortunately, the apprenticeship schemes are driven by employers. You need be employed to become one. The bit the government controls directly (colleges) are very happy to take as many as they can get.

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    Mute Anthony Guinnessy
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    May 2nd 2022, 9:08 PM

    @The Guru: why would someone do an apprenticeship when they can get a house for free if they are unemployed?

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    Mute Roger Bond
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    May 2nd 2022, 11:31 AM

    I only rent out to tenants for 5 months at a time.If you rent out for 6 months or over you are stuck with the tenants for 5 years and more.
    It’s worth the hassle to rent only to people for 5 months.

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    Mute Jane Alford
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    May 2nd 2022, 2:05 PM

    I’m being evicted because my landlord is selling. Got the notice just before 7 years was up, so 6 months instead of the next bracket. I’ve been searching for a place for 3 months now. Absolutely nothing available. Nothing private, nothing council. Nothing. Because I’m on HAP, that also severely restricts me on where I can search too, personally I’d move anywhere in the country, but I can’t. It’s making me I’ll with worry. I’m going to have to get rid of everything too, I can’t sell it because nobody is buying, so that’s going to be a horrendous waste of a lifetimes worth of money and expense. My only option looks like emergency accommodation which will be a B&B. Yuck. I’m being forced back into living like a student, and I’m an OAP. I hate this.

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    Mute RedDevil
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    May 2nd 2022, 9:41 PM

    @Jane Alford:

    What is wrong with being accommodated in a B & B?

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    Mute Jane Alford
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    May 3rd 2022, 7:25 PM

    @RedDevil: Most B&B’s require you to be out of the room for a significant part of the day. Often shared bathroom. Not allowed to cook in the room or use the kitchen which means eating out, and that’s extremely expensive. Close proximity to other people. Virtually zero storage room, B&B’s are designed for overnight stays not long term. Rules and regulations that are often more suitable for a primary school. I hate them. I’m not in my 20s any more and haven’t been for a VERY long time. If I’m allowed to keep my dog with me, that would be a miracle.

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    Mute Smithweiser
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    May 2nd 2022, 10:39 AM

    “They’ll do nothing “

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    Mute Jim O'Sullivan
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    May 2nd 2022, 2:59 PM

    Has it never occurred to housing “charities”, that they have become part of the problem by allowing the government to hand on their responsibilities to them? It is time for all social housing to be placed back under the direct management of a government Minister.

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    Mute Stephen Campbell
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    May 2nd 2022, 1:29 PM

    Tourists want to come to Ireland. Gov changes regulation so that they cannot get accommodation at a reasonable price… ok..

    42
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    Mute Roger Bond
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    May 2nd 2022, 8:08 PM

    @Stephen Campbell: All the hotels are full of refugees so I hope Bord Failte is not inviting any tourists to come here and mix with refugees.

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    Mute Liam Edward Harris
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    May 2nd 2022, 3:11 PM

    Landlords are selling up because they bought houses, have spent years getting tenants to pay off the mortgage for them and can now sell as property prices are the highest they’ve ever been making a profit on whatever is left after the mortgage is paid.

    Somebody else spent their wage paying for landlords to own a property that they can now sell and make profit from. They can stop acting hard done by now please.

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    Mute Anthony Guinnessy
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    May 2nd 2022, 4:51 PM

    @Liam Edward Harris: do you not reckon they would hold on to them if they were raking in the money?

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    Mute sally reid
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    May 2nd 2022, 5:50 PM

    @Liam Edward Harris: 40% tax. Yeah hard done by

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    Mute lilolil
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    May 2nd 2022, 6:05 PM

    @Liam Edward Harris: I doubt that’s the only reason. Unable to evict tenants if they don’t pay is a very real problem and makes it untenable for landlords. Over 40% of income taxed too and quite often nor meeting the mortgage payment in the first place so just not worth. Also have just learnt if tenants don’t pay HAP then the landlord doesn’t get paid and it lies with the landlord to get them to pay or get them out. None of this would make me want to be a landlord!

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    Mute Mickey Finn
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    May 2nd 2022, 6:34 PM

    @lilolil: HAP should be independent of the landlord. A landlord wants the tenant to pay the rent – why should they they even be aware the tenant gets rental support? If the government needs to verify the property is rented to the tenant in question and for how much the PTRB have that information.

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    Mute Sean O'Murchu
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    May 2nd 2022, 7:38 PM

    Our president had no issue evicting tenants so he could avoid paying capital gains tax!

    10
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