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Updated 3.55pm
LANDLORDS WILL BE barred from increasing residential rents for two years under new plans to tackle the housing crisis announced by the government today.
Property owners will also be required to give longer notice to tenants of rental increases or eviction as part of long-awaited proposals announced by ministers Alan Kelly and Micheal Noonan.
“I hope it works,” Finance Minister Noonan said today as the government ended weeks of speculation and infighting over measures to tackle soaring rents and lack of housing supply.
The increase in the rent review period will mean that anybody whose rent has been increased this year will not face another hike until 2017. This 24-month review period will be in place for four years before it reverts back to 12 months.
“Legislation will require 24 months between all rent reviews, in what is among the most signifiant overhaul of tenants’ rights in the state,” the government said today.
It’s also been confirmed that the amount of notice a landlord must give a tenant of a rent increase will be extended from 28 days to 90 days.
The Private Residential Tenancies Board (PRTB) will be given new powers to ensure landlords inform tenants of their rights.
Evidence of a landlord’s justification for any rent increase, such as the market rent for similar dwellings in their area, must be provided to the tenant.
Other initiatives being rolled out include:
In a blow to Environment Minister Kelly, his initial plan to link rent increases with the level of inflation for a three-year period – known as rent certainty – was vetoed by Noonan in recent weeks.
However, Kelly said today these measures amount to rent certainty for landlords and tenants, insisting it is a “comprehensive package” that he is happy with. Noonan said it would provide “security of tenure for tenants”.
There have been calls by a number of housing and construction industry groups for the government to get ahead of the crisis, with little being offered in last month’s Budget, other than the announcement of the construction of modular homes in parts of Dublin.
Ahead of today’s annoucement, Ibec group Property Industry Ireland, called for government to create a cabinet minister for housing.
“Creating a senior ministerial housing portfolio would create some much-needed leadership in this policy area. It would also help demonstrate a commitment from government to the speedy resolution of the crisis in the Irish housing system,” said PII director Dr Peter Stafford.
He said at least 25,000 new homes need to be built each year to meet demands. At present, just half of that are being built, he said.
- with reporting from Christina Finn
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This has to stop, and stop now. Don’t get me wrong, I am not averse to people who have been wronged being compensated. However, this has happened too many times in my lifetime. First we paid for PMPA, then we paid for ICI, then we paid for Quinn insurance (pretty sure I’ve missed one out there). In this day and age it cannot be beyond the wit of man to discover who are the beneficial owners of Setanta Insurance. This crap where profits are private and losses are to be recouped from the public has to end. Lobby your TD, it isn’t good enough and never was. Do you want to be treated like fools all your lives? Sieze the assets of these b/tards. It won’t cover the damage completely, but at least there’s some satisfaction in it
So is it just insurance claims that are to be paid? No recompense for people who paid for a policy and were left high and dry?
Paying up front for insurance not a good idea but if you pay monthly they add all sorts of charges (basically interest) which is a rip off as you are essentially receiving the service over a year you shouldn’t be penalised for not paying up front
Paying for anything up front comes with that risk. But by paying for insurance on a monthly basis, it’s not just interest they add, it’s extortion.
If you paid monthly you still had to pay the balance as they borrowed from a third party for you policy
Great news! A lot of small businesses were badly pinched by them
True but still crappy for those who renewed and paid in full for policies just before they went bang.
Like me…. grrrrrrr
So basically we the taxpayer are picking up the tab! Sure why don’t we pick up the tab for every failed business?
No. The MIBI is funded by the insurance companies. If the MIBI has to pay out up to 90 million, that will likely be funded by a levy on motor insurance policies.
i am not sure this benefits customers of Setanta. it is for those people with personal injury claims against Setanta customers.
That’s great news for the people waiting on a settlement. They deserve to finally be paid. The Regulator has to make sure these Mickey Mouse insurers aren’t allowed operate though. Crazy that they can just say sorry bye and leave everyone scratching their heads!
Setanta said previously they only had enough money to cover about 35% (when they reckoned they could get ICF to cover the other 65%) but now that MIBI will cover 100%, presumably the people that were scammed out of their premiums and own damage claims will get their refunds due to them too….. will they fook….!!
Formed in Malta, traded only in Ireland, grabbed the cash, disappeared without trace. You’d have to be some kind ofy corporate finance guru to pull off a stunt like that, like Hobbs or someone.
What about the independent claims investigators who investigated these claims..will they finally be paid the fees they are owed also??
I wouldn’t like to be waiting on a cheque for my invoice, that’s for sure!
In reality, there’s a lot more people out of pocket than just the third party claimants.
I thought insurance companies were supposed to be able to cover the claims. I see another levy for the rest of us great.
does anyone no if mibi will appeal
From the tax payer???
have your say