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SINN FÉIN ARE to propose legislation that would put a freeze on rents, and are calling on Fianna Fáil to support the bill given their criticisms of Fine Gael’s record on housing.
Housing spokesperson Eoin Ó Broin will move the Rent Freeze (Fair Rent) Bill 2019 during private members time next Tuesday.
“The Rent Pressure Zones are not working,” Ó Broin said. “Even if they were, people can no longer afford any level of rent increase.”
‘Rent Pressure Zones‘ are designated areas around the country with particularly high rents that are limited to a maximum of 4% rent increases per year for new and existing tenancies.
Since RPZs were introduced in December 2016, rents have continued to grow dramatically. The average rent at the moment is €373 higher per month than the previous peak in 2008 and almost €660 higher than the lowest price in late 2011.
Despite this, the government has said that RPZs are working:
That maximum rent increase in 4% a year is working for hundreds of thousands of people who are staying in the same place that they have been renting, medium term or long term, and had it not been for those rent controls, I think those hundreds of thousands of people would have faced very high rent increases by now.
Ó Broin claims that the Bill would ensure that renters would be protected from further rent hikes and “would get a month rent back into their pockets”.
“This government has given tax breaks to developers, landlords and first-time buyers. It is time to give renters a break.”
On 12 November Fianna Fáil Micheál Martin told the Dáil:
“Surely it is now time for the government to consider a rent freeze and compose a rent freeze, given the exorbitant levels of rent that people are facing.”
Varadkar replied to say that “there’s a real concern about the unintended consequences of a rent freeze,” and that it “might cause less new supply” in the rental market.
Today, Ó Broin said: “Next Tuesday Micheál Martin has a chance to put his money where his mouth is and decide if his party is willing to support renters.
“Renters deserve better. All TDs have a chance next Tuesday to give renters a break.”
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SFein want everyone to get everything for free with no increase in taxation.
Very few will fall for that fairytale thankfully.
@sean de paore: Silly Unfounded Comment.
@sean de paore: FFG already flittering away people’s taxes on white elephant printers, white water rafting amusement centres and overpriced children’s hospitals. Joke
@sean de paore: You work for Apple. Your argument is null and void
@sean de paore: Sinn Fein , given the chance, would be the highest tax political party ever in Ireland, if their policies were implemented.
@sean de paore: good man Seán….you obviously thought long and hard about that comment..which sadly makes it even more ridiculous than it looks..keep voting FG ..sure they’re doing famously..
@sean de paore: stupid and ignorant comment
@sean de paore: Suppose the Billions that exit this country and will for generations because of the gangsterism of the banks and developers facilitated by politicians should have been used for the benefit of it’s citizens. Crumbling health service, Housing crisis, Homelessness, Scandal after Scandal. Yet the mantra of Leo and his cohorts kept in power by the party F.F.that brought this country to it’s knees blame the ordinary people of Ireland for their gangsterism.
@JusticeForJoe: He’s terrified they might get into power and force his employer to pay some corporation tax so he has to knock them.
@sean de paore: nope, Sinn Féin just want corporations and banks to actually pay 12.5% instead of the 3-4% they’re currently paying.
@sean de paore: They can say what they want, because they know that they won’t be in a position to implement it? And lots fall for it?
@Dom Layzell: The problem for SF is that the day they go into government they become part of the establishment and will go into reverse like Labour and GP here and especially like their stablemates Syriza in Greece. I would imagine if they can they will avoid making a serious attempt to be part of the new government next year unless they manage to become the largest party.
Stop Cuckoo funds being allowed to snap up properties.
@StillNotNews: 60 % bought by councils
@ed w: Not true .. closer to 6 percent.
Another populist proposal by the shinners. SF asking FF for help. These 2 could be the next government lol
@Patrick O Connell: I can,t see F.F. Doing a deal with the likes of S.F. They have higher standards then that.
@Patrick O Connell: Paul half fg are landlords all about money look at em dara swing gate etc pure greed
@Patrick O Connell: no hope fianna fail become the prop up party for fine gael
@Patrick O Connell: How is it populist, rent is completely out of control even in small towns people are spending up to 70% of their wages on rent and no matter how you feel about Sinn Fein at least they are trying to do something about it, no one else seems to give a toss.
@Martin Scaldbag: you mean sinn fein have much higher sights than propping up fine gael and fianna fail
@Patrick O Connell:
FF abstained from voting against the current housing crisis. Meaning that FF supports the current status quo of rental crisis, housing crisis and homeless crisis.
Hardly sounds like another party is asking for help from FF. The party of abstention.
@Martin Scaldbag: FF have higher standards??? You’re aware that they abstained from the vote against an incompetent housing minister, right? If you’re not part of the solution you’re part of the problem. High standards indeed, lower than a snakes balls the lot of them.
@Martin Scaldbag: ff and standards? Do you not remember them in government?
@Martin Scaldbag: FF have higher standards now there’s a laugh
@Martin Scaldbag: Ff….standards…the party that only ten years ago threw us all into bankruptcy and 69 billion in debt…standards?..they wouldn’t know a standard if it was stood in front of them.
@Martin Scaldbag: Higher standards?
@herp: Ya herp, let’s get rid of all the Landlords and make sure that they are poor, will that make things better?
@Shane Barry: Sein Fein and the left pushed for Rent Controls a few years ago. A weak Government caved in because no politician ever lost votes screwing over Landlords. The end result was RPZ. They were warned this would affect availability of rental property and that’s exactly what happened. The small landlord with one or two properties began to exit the market. The vulture funds that bought up new properties were the where not affected by RPZ and could charge top dollar as they were new rentals. The affect is that the average rent has increased over the 4% allowed.
RPZ is bad enough but if you bring in a Rent freeze more small time landlords will exit the market. Vulture funds might stop investing and while a lot of people including myself think that is a good idea because it would give normal people a chance to buy property instead of estates being bulk sold to Vulture Funds the reality is building would slow down as developers can’t get loans from banks so they have to build in dribs and drabs. The net result would be an even greater shortage of rental properties. Since RPZ has come in tenants tend to remain longer in rental properties due to favorable rents and lack of supply. Rent freezing would only exasperate this.
Sein Fein is like a Dementor feeding off the misery of others. Its easy to throw out cheap populist ideas with no thought about the real world consequences.
This governments real failure has been not building large scale social housing. This would get HAP out of the private rental sector freeing up more rentals for the general population. More rentals equals better competition and cheaper rent.
FG and FF don’t want to build social housing because Councils have been very weak about rental collection. Dublin City Council is owed something 30m in unpaid rent from social housing. Imagine what that money could do if it was collected but people in social housing have no real fear of eviction.
If you want a working rental market you need
Rapid eviction for non payment of rent whether the landlord is a Council or private.
Overholding made a criminal offence with immediate eviction carried out by the guards.
2 very unpopular ideas and no politician would have the guts to try and bring that in.
A vast social housing building program needs to be built on government owned land. Ireland is a small country . There should be one body responsible for building social housing. They hire the architects, engineers and builders to build. Once built the properties are handed over to the councils who then allocate to people on the waiting list, collect rent and maintain them. The current system of many councils going to government looking for money to build is just not working.
Anyway that’s my rant over but remember Rent Freeze = less rental properties available and more homelessness. Its that simple. But that would suit a cynical Sein Fein who would revel in an increase in the homeless numbers.
Rent freeze is not enough. An unfettered and unregulated housing market results in landlords creating their own value for rental prices (at 40% to 50% of wages, or higher).
Homes shouldn’t be for profit, especially when we have such a housing crisis.
@Dean: This is simple, the citizens need housing. The government should start building public housing – not talking, planning or intending but actually building. This will stop rents rising and should cause them to fall. If we, as a country, don’t want people to make a business of profiting from rental, we should build our own.
If anybody watches the numbers being a landlord is for fools now a bit like beef farming
The sooner they stop interfering in markets the better
@Paul Dooley: anyone that is a landlord with one or 2 properties is been rode by the government with taxes . The government interference in the market place is blowing up in their faces . Stop using landlords as the problem it isn’t the landlords but stupid government policies.
@Paul Dooley: My heart bleeds for those poor landlords. Give me a break. A 2 bed apartment going for €2,100 per month around the corner from me. Absolutely no justification for that greed.
@Billy Nomates: check the mortgage repayments on that, check the tax situation. Come back when you have facts. How much of €2,100 ends up in the pockets of someone, say, paying €1,600 on a mortgage on that property… Plus insurance, property tax, fees.
@Andy Cashman Macken: the Mortgage isn’t relevant – they weren’t strong armed into buying the place at colossal mortgages. If they did buy at far more than that place was worth they’re idiots.
@Shazam37: you are right they are idiots as least a lot of them some bought houses for more than they were worth and are now in negative equity struggling to pay the bank and are even subsiding the rents to hang on to the place ,all situation are. different you can’t give out blanket statements
@FlopFlipU: As they say, the value of your investment may rise or fall. If it fails then tough.
@Andy Cashman Macken: When the majority of apartments for rent in the same block are going for around €1,500? Who are ye kidding?
@Shazam37: The tenant wasn’t strong-armed into renting it either. The reason the mortgage is high is because the property is valuable as you can get a high rent because there is a high demand. The problem is not greedy landlords, it’s insufficient housing. Build public housing!
@Paul Dooley: agree they need to grow up and replace the lost social housing tent freeze will halt new developments as it has in Berlin. developers there have moved their capital to other german cities. pity the brains in our political system dont see that.
@Billy Nomates: I’m a long term renter, I’ve nearly been homeless 3 times this year alone and living in poverty when finally got a home as rent so high but I’m not blaming the landlords, they get very very little profit, if any at all, after they pay mortgage and government taxes. Its the government that have caused this issue and they’re in no hurry to fix it.
Just means less rental property. Explain how this will solve a supply issue?
Long overdue that the gouging is stopped, fair play to them for steeping up to force the hand of the complicit self interested gombeens!
Landlords whining here about taxes should put up or shut up, they are in very comfortable positions and crying about not being allowed to gouge further shows their immoral side for what it is..
@James McCooey: Good man. Stop the landlord. Then when they’re stopped, who’s going to provide you with accommodation? Do you realise that landlords have been exiting the market in droves because of exactly this kind of policy and attitude. I sold up myself last year and had to let 4 good tenants back out into the rental market. Before I did, the last time I advertised a room, I had several “complicit self interested” potential tenants drop it into the conversation that they were willing and prepared to pay significantly more than the asking price for the room. (I gave the room to someone more deserving). You have no clue what you’re taking about.
@Paraic: cheers for the condescension there, haha, really sets you off as an intellectual from the start.. Your drivel is hilarious.. Landlords are the parasites of this land and people for centuries.. Breaking the back of someone else to feather their own nests as much as possible is the immoral avarice that means landlords should be chased from the market! :)
I have read the make-believe above and it is illogical drivel..
@James McCooey: have you run the tax situation yourself or just assuming it’s landlords complaining?
@James McCooey: Your comment ranks up there with some of the most “illogical drivel” I have seen on the Journal. A proper rental sector is critical to a functioning housing market. Landlords are essential to a functioning housing market. Not everybody can afford to buy a house, not everyone wants to buy a house. Nobody except the most vulnerable in society should be housed by the state.
The housing issue in Ireland is a supply problem, Availability of land in places appropriate to economic activity and availability of contractors to build. Rent caps do nothing. There is no question that rent caps are going to create under the table payments as @Paraic has alluded to.
@Andy Cashman Macken: Through multiple now almost anecdotal commenting a common theme is being taxed at 52%, forced out of market, et al.. I have no interest in the numbers at present and future.. This simply boils down to have the costs of owning a property and renting it increased in any way proportionately to what is being asked and increased at each time landlords can.. The answer is clearly that they haven’t so landlords, be it small time or multinational, are breaking the backs of others for their own greed!
@Feardorcha Ó Maolomhnaigh: This is the problem. We shouldn’t be dependent on a private rental market to solve the issues. It’s up to the government to step in and build houses like we did in the not too distant past. But no, as we can see this government are happy for private interests to maintain the market.
@James McCooey: Have you stopped to think that maybe those commenting that being taxed at 52% forced them out of the market, might actually be genuine?
On the one hand you claim to have no interest in numbers, yet on the other, you suggest that there have not been increases in costs for landlords. How very convenient. Because if you took a look, you would see that there have been nothing but increasing costs: RTB registration fees, mortgage interest rates, LPT, rent caps below inflation rates, the requirement to provide microwave ovens among other things (bizarrely) etc, etc. Landlords have left the market in droves. You can read more here: https://www.irishtimes.com/business/personal-finance/why-are-landlords-leaving-the-market-in-large-numbers-1.3360363
@Billy Nomates:
That’s a brilliant idea Billy! Free houses.
Let’s take 20,000 construction staff into the Public Service were they will be paid twice the going rate + pension. They will then take twice the time to build substandard housing that will eventually cost the taxpayer three times what it would have cost a private sector contractor to build. The building supplies companies will be lick their lips at the 100% additional markup.
Let’s not forget the additional 5000 admin staff to manage the tenancies, the 2000 maintenance staff to fix the leaky radiators.
All of this paid for by the taxpayer. Brilliant idea Billy!
@Feardorcha Ó Maolomhnaigh: Apart from the hyperbole of “Free Houses” whats your alternative? If you’re expecting the private sector to fix the housing crisis, well…. take a look around you.
@Ich bin brendan: To request an alternative is to imply that there is some validity to the concept of the State building houses. There isn’t. It is not a solution, so any alternative to a non solution would not be a solution.
If we want to improve the accommodation crises, which is primarily a Dublin issue, then then we need to release land in Dublin and get it sold to builders and developers. We need to incentivise them to build affordable accommodation. We also need to radically streamline the planning process. Sinn Fein and PBP need to grab their Dublin councillors by the scruff of the neck and get them to stop objecting to new housing projects.
In the long term we need to move some economic activity out of Dublin and into the other major urban centres.
@Feardorcha Ó Maolomhnaigh: to be fair most of the problems with substandard work came from private contractors priory hall being one of them
It’s way, way beyond time for a rent freeze. This may be the first time I agree with Sinn Fein on anything.
They’re right to put FF u see pressure now, they can smell blood. FF screwed up badly by abstaining and SF are capitalising on the justified anger.
Martin rolled John McGuinness out today to publicly state that he would not support the government in another confidence vote – he’d vote against them. But it was too little too late for Martin and FF who now look totally complicit. Sometimes Michael Martin, sifting idly by does more damage to you than taking a stand.
Coventry put a 4% cap on rent hikes, but that was still way ahead of wage increases for most people, therefore people continued to be bled.
@Perlum Sprite: the politics of envy will do you or your society no good.
Continual government interference in the free market will lead to the lowering of living standards for everyone, not just the wealthy.
If it makes you feel better that the wealthy will have less and that somehow makes your life better then vote for it.
The sooner than later a society experiences the debacle such an infantile mindset causes the better.
@Greg Daniel: governments are there to regulate, legislate. That’s what they do when operating correctly. Housing/shelter is an essential need and should be highly, highly regulated. We have highly dysfunctional housing market and the sooner massive taxes are levied on those hoarding sites and land the better.
Property speculation destroyed the economy of this country. It should be controlled so tightly, that no-one would want to become a landlord in the residential market.
There should be tax relief for tenants, as well as a rent freeze. I asked the Labour Party to support this idea a few years ago, they absolutely rejected the idea. Maybe thats why the Labour Party no longer exists?
I’m now being charged an Extra 68 quid a month for a parking spot that was free the last 6 years another scam by landlords to get more than the 4% a year increase.
@Ciaran O ‘Reilly: Shocking stuff. When did the Irish become such a greedy people? Or maybe we were always like this?
The election games have begun!
@Carpentoza: BS.
You would need to be a couple on at least 45k a year each & a deposit of about 40k to buy one of these “affordable houses” they say their building, not easy when your spending all your income on rent and other living expenses. So this couple go to the bank and ask for a mortgage, now when the bank takes into consideration the fact they have a child or maybe 2 along with a car loan they are paying, the level of security of employment they are in and their day to day living expenses then that 90k they both earn suddenly read more like 65k and they will leave the bank without mortgage approval and forced back into paying some greedy landlords mortgage. So really a couple would want to be on 60k each to stand a chance. Not much hope for most people in this market driven neo-liberal little gem we live in is there?
1. Rent freeze for 5 years.
2. Reduce taxi on rental income to standard rate.
3. No person or entity can buy any more than 2 units in any given development
@Des ODwyer: 4. More landlords exit, less supply.
A demand-side solution to a supply-side problem. Brilliant!
@Kieran Feely: exactly, but Sinn Fein voters and potential voters won’t understand the difference.
@Carpentoza: a demand side problem it may be – but it’s better than the nothing government is currently doing
@Shazam37: It’s a SUPPLY side problem. There’s no issue with demand. Doing nothing is waaay better than compounding the problems with supply.
Politicians playing politics.
If SF have all the answers, why have they not implemented up north where they have been in power. Homelessness is far worse up there per capita.
Build more is the only answer, whether it’s bedsits, student gafs, millionaire mansions, it just needs to be built. More supply is the only answer.
@Nioe: You are comparing apples and pears. SF are a minority the Executive and have to deal with the DUP who are austerity supporting Tories. Also the Executive does not have revenue raising powers and has to rely on a block grant from Westminster. Finally the methodology for measuring homelessness is different North and South. A move liberal interpretation is applied in the North, is the South you have to be virtually destitute.
It’s a huge reduction that’s needed, not a freeze.
Populist? Certainly unpopular with FG the landlord party. Were FG anti-populist when in opposition?
@Angela McCarthy: FG are not a landlord party. They have done nothing for landlords. They are merely an incompetent party
There should definitely be a tax freeze but it will never happen . Sinn Fein are only playing to the gallery now because they want to have a decent cv when they knock on the doors.
It all started with the unproven notion of social housing in the 2000 Planning Act. People buying new houses were expected to pay for social houses along with their own. Developers realized that mixed estates were un-sellable, so they paid the money over instead. That pushed up the price of new houses even further. Dismantle that crazy system, let local authorities build social housing estates again, and don’t put tenants with significant anti-social records into them. Let anyone with history of drug-dealing, violence, burglary, criminal damage etc make their own arrangements.
F.F S HELP ..don’t make me laugh..the people in F.F.. seemed to have forgotten the police’s of their forefathers as F.F was always the workers party…now they are FINEGAEL.. Generations are turning in their graves …shame on the lot of them
As you see from the comments above, and probably below. The housing crisis is just not that much of concern for people that are lucky enough to have a home this Xmas! and have stopped caring about there fellow Humans, Friends, Neighbours and Family, who are not so lucky to have their own Home this Xmas. Whether they’re in Direct provision, Family Hub, Hotel, B&B, Hostel, Couch surfing, Living with parent well into adulthood!(me) Or very sadly for various reasons those now called rough sleepers with, Mental Health Issues, Addiction Issues, abandonment Issues or just falling through the cracks of our clearly broken society! They won’t have a home this Xmas.
I would go even further and have rent reductions… it’s gone crazy.
When will we learn that residential properties are for living in and not for making huge amounts of profits off.
@Diarmaid O’Riordáin: exactly! Rents should not be twice as much as mortgage repayments as people who rent cannot afford or don’t want to have a mortgage. And the whole explanation that landlords are in negative equity and charge more rent to cover the costs of it is BS. Why should sometimes the poorest and most vulnerable citizens pay for their failed investment? Landlords are needed but those that charge fair price. I recently bought a house i was renting for 5 years from landlord who never put up our rent. Bank sent valuers in and they said our landlord was crazy charging us so little for so long. To me that attitude speaks volumes. Put it up as high as you can and let them worry about it? Disgraceful. They need to lower them and a lot!
The government is spinning the yarn that the mass exodus of small landlords is due to rising property prices. So how come they’re not being bought by other small landlords? Because they’ve been run out of the market while the institutional landlords pay no or low tax.
Rent freeze way overdue. I just don’t get how government cant afford to build more housing if they have money to pay up to 2800e pm for a property on HAP…wait most of government are landlords and making fat bucks on this crisis
Haha, I was referencing his makeyuppy storytelling.. I love how you both have alluded to the moral vacuum within landlord ideology and your opinion they would be open to breaking the pitiful laws introduced to further line their own pockets.. Part of why I called nonsense on the first posters reply!
But sure hey ho whatever keeps the greedy and sycophantic comfy in their beds at night
Fine Gael on everything: You have to do what we say else everything will be worse! Vote for us as the alternative you haven’t tried will be much worse! Trust us! Don’t implement new polices we don’t like! Even though we haven’t tried them and everything we have done for ten years has made the problems worse believe us when we say new ideas will make things worse!
All they have are failed policies and scare mongering that people keep buying into.
Most of the TDs are landlords themselves. why would they care about housing people
Better chance of finding a needle in a hay stack
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