I am a landlord of a small basic 3 bed property in a large provincial town stuck with low rent in a Govt RPZ, the last tenant moved on in Jan 2022. On 1 facebook post to re-rent it I had a queue of 42, mainly professionals wanting to rent it.
They all had pretty much the same story, there is absolutely nothing on the market (at any price) most did not care what the rent was they were earning good money they were just desperate to get anything, they were either under notice to go as their current landlords were selling up or they were new to town and had been living in hotels.
The advice from my bank, accountants and solicitor is to sell instead of re-rent as rent is capped at 2% so there is no profit incentive.Why would anyone stay in the market. I suspect there is a tsunami of landlords exiting now it will probably be a few months before the figures are released but no doubt the RTB must know this by now.
Inflation is acknowledged by Govt at over 5% in reality building inflation is over 20% ( I know basic build cost per Sq/Ft has risen from €115 to €155 in 2021 alone, so unless interference is removed there will be no market supply left.
Jim, your article almost concedes on the notion that Sinn Féin have a magic solution worth trying. They don't. Their proposed policies of rent price control, increased taxation on employment and on investor wealth and increased regulation will drive many more investors, developers and landlords from the market - thereby reducing housing supply (and reducing Ireland's tax take). Ireland's housing problems are undoubtedly the result of a successful-economy, right at the top of first-world society league tables. When I was a young guy most people were emigrating after school/college, now we have large scale net immigration with people attracted by our economic model and the benefits that flow from it. Young people now have a choice of quality jobs so long as they are educated or have a trade/skill. And, our government is doing more than any other first-world government to ease the housing issues here. Let's not forget that lock-downs had a major impact on construction activity for two years, but since last April when the lock-down was eased the supply line has dramatically increased with 20,433 housing completions for the year, with over 30,000 commencements likely this year. By the time of the next general election we will have seen a dramatic increase is housing supply, notwithstanding the construction time lost over the past two years of the pandemic. Columns like yours should move to explaining the issues and the solutions underway, rather than despairing at one of the effects of our successful economic model and reducing the debate to acceptance that SF should be given a chance. As you well know, if SF get a chance to implement their far-left socialist agenda, there will be a significant loss of investor capital from Ireland, combined with a resulting loss of tax revenue. Not something to look forward to. You are an experienced economist Jim; you know what happens when countries experiment with hard-left socialist agendas. Let's rationally explain the economic consequences of both good choices and daft choices.
I am a landlord of a small basic 3 bed property in a large provincial town stuck with low rent in a Govt RPZ, the last tenant moved on in Jan 2022. On 1 facebook post to re-rent it I had a queue of 42, mainly professionals wanting to rent it.
They all had pretty much the same story, there is absolutely nothing on the market (at any price) most did not care what the rent was they were earning good money they were just desperate to get anything, they were either under notice to go as their current landlords were selling up or they were new to town and had been living in hotels.
The advice from my bank, accountants and solicitor is to sell instead of re-rent as rent is capped at 2% so there is no profit incentive.Why would anyone stay in the market. I suspect there is a tsunami of landlords exiting now it will probably be a few months before the figures are released but no doubt the RTB must know this by now.
Inflation is acknowledged by Govt at over 5% in reality building inflation is over 20% ( I know basic build cost per Sq/Ft has risen from €115 to €155 in 2021 alone, so unless interference is removed there will be no market supply left.
Jim, your article almost concedes on the notion that Sinn Féin have a magic solution worth trying. They don't. Their proposed policies of rent price control, increased taxation on employment and on investor wealth and increased regulation will drive many more investors, developers and landlords from the market - thereby reducing housing supply (and reducing Ireland's tax take). Ireland's housing problems are undoubtedly the result of a successful-economy, right at the top of first-world society league tables. When I was a young guy most people were emigrating after school/college, now we have large scale net immigration with people attracted by our economic model and the benefits that flow from it. Young people now have a choice of quality jobs so long as they are educated or have a trade/skill. And, our government is doing more than any other first-world government to ease the housing issues here. Let's not forget that lock-downs had a major impact on construction activity for two years, but since last April when the lock-down was eased the supply line has dramatically increased with 20,433 housing completions for the year, with over 30,000 commencements likely this year. By the time of the next general election we will have seen a dramatic increase is housing supply, notwithstanding the construction time lost over the past two years of the pandemic. Columns like yours should move to explaining the issues and the solutions underway, rather than despairing at one of the effects of our successful economic model and reducing the debate to acceptance that SF should be given a chance. As you well know, if SF get a chance to implement their far-left socialist agenda, there will be a significant loss of investor capital from Ireland, combined with a resulting loss of tax revenue. Not something to look forward to. You are an experienced economist Jim; you know what happens when countries experiment with hard-left socialist agendas. Let's rationally explain the economic consequences of both good choices and daft choices.