Third level students shouldn't vacate their rental housing in Dublin and Cork next summer

patslatt

Well-known member
Joined
Apr 11, 2007
Messages
13,637
Introduction of rent controls of 4 percent a year will prevent rents from rising at much faster present rates of ten percent or more. While that will relieve pressure on existing tenants, it will also fail to balance the market for rentals and sharply increase shortages of rental housing. Students who give up their rental units next summer may find they can't afford the higher rents on returning.Most of the pricing pressure on rents will now focus on the small number of units coming on the market instead of on rent increases on all units across the market.

Tenants will be under less pressure to share, move back home or rent smaller units, reducing the number of units coming on the market. On the supply side, investors in rental housing will be put off by the uncertainty over rents as rent increases are determined by populist politics, with opposition parties always calling for lower increases than whatever the government proposes. Many landlords are likely to sell out, while existing high rise construction intended for the rental market is likely to switch to condominiums for sale.

It will be politically difficult to get rid of rent controls. Since they create a coiled spring of suppressed price increases, lifting controls could result in a big burst of very high rent increases. "Temporary" rent controls can last for decades.
 
Last edited:


freewillie

Well-known member
Joined
Feb 3, 2013
Messages
7,295
patslatt has made a very relevant point there. I do know some students who held on to their rental over the Summer i.e June July August rather than run the risk of not getting anything in September. The property was empty for three months bar a few eeekends when people came to Dublin for matches or concerts
 

blokesbloke

Well-known member
Joined
Jan 13, 2011
Messages
22,697
patslatt has made a very relevant point there. I do know some students who held on to their rental over the Summer i.e June July August rather than run the risk of not getting anything in September. The property was empty for three months bar a few eeekends when people came to Dublin for matches or concerts
First time for everything!

And a thread which is NOT about public sector workers!

Well done patslatt!
 

silverharp

Well-known member
Joined
Jan 21, 2015
Messages
16,299
if they gave a tax exemption for renting out back gardens for tent space I'm walking distance from Trinners and UCD
 

patslatt

Well-known member
Joined
Apr 11, 2007
Messages
13,637
First time for everything!

And a thread which is NOT about public sector workers!

Well done patslatt!
It's about public sector idiocy in introducing rent controls which most economists including those on the liberal and left wing strongly oppose.Many areas of Dublin and Cork could slowly become slums as landlords neglect maintenance, knowing tenants are stuck.
 

freewillie

Well-known member
Joined
Feb 3, 2013
Messages
7,295
if they gave a tax exemption for renting out back gardens for tent space I'm walking distance from Trinners and UCD
And you could do the old scoutmaster trick at nightime checking the tents
 

wombat

Well-known member
Joined
Jun 16, 2007
Messages
33,002
Times have changed when students can think of renting expensive accomodation that they don't need for 3 months.:lol:
 
Joined
Oct 8, 2011
Messages
39,553
It's about public sector idiocy in introducing rent controls which most economists including those on the liberal and left wing strongly oppose.Many areas of Dublin and Cork could slowly become slums as landlords neglect maintenance, knowing tenants are stuck.
This is the public sector's fault? It thought that this was being discussed at government level.
 
D

Deleted member 48908

Unintended consequences can be a real bitch sometimes.

So, from what I can see, the plan is for there to be a limit of a 4% per annum increase for tenants who remain in their rented accommodations. However, if the tenant moves out, then the landlord can increase the rent to whatever the market will bear, and rent the place to new tenants at, say, a 10% increase. Am I correct in saying that?
 

wombat

Well-known member
Joined
Jun 16, 2007
Messages
33,002
The problem with rent controls is that after a few years, landlords start to scrimp on maintenance - its great for a while but eventually it fails.
 

patslatt

Well-known member
Joined
Apr 11, 2007
Messages
13,637
The problem with rent controls is that after a few years, landlords start to scrimp on maintenance - its great for a while but eventually it fails.
Vast areas of New York's Bronx and Brooklyn became horrible slums as low income tenants were awarded very tight rent controls and landlords abandoned buildings.
 

APettigrew92

Well-known member
Joined
Aug 4, 2011
Messages
2,699
Introduction of rent controls of 4 percent a year will prevent rents from rising at much faster present rates of ten percent or more. While that will relieve pressure on existing tenants, it will also fail to balance the market for rentals and sharply increase shortages of rental housing. Students who give up their rental units next summer may find they can't afford the higher rents on returning.Most of the pricing pressure on rents will now focus on the small number of units coming on the market instead of on rent increases on all units across the market.

Many landlords are likely to sell out, while existing high rise construction intended for the rental market is likely to switch to condominiums for sale.

It will be politically difficult to get rid of rent controls. Since they create a coiled spring of suppressed price increases, lifting controls could result in a big burst of very high rent increases. "Temporary" rent controls can last for decades.
There have been no indicators that would suggest the current trend of renting is about to subside. Too much money being made already. That proposal was needed four years ago, not now. Far, far too late to mitigate things.

It's about public sector idiocy in introducing rent controls which most economists including those on the liberal and left wing strongly oppose.Many areas of Dublin and Cork could slowly become slums as landlords neglect maintenance, knowing tenants are stuck.
Landlords are already doing this. Dublin 7 has essentially become a "melting pot" of awful conditions, uncertain rents and overcrowding. You are speaking of a hypothetical situation that simply already exists.

How is this the Public Sector's fault? I guess withdrawing from an active building role, sure, but that was years ago. Can you link us all to these "left-wing economists" who are huge fans of exploitative rent increases?

Some places in Dublin 7 have jumped by 70% in three years. Most between 25%-50%. If it was profitable to be a Landlord in 2011, it is now lucrative as hell.

You are talking about a future that has already come to pass without rent certainty.

This is the public sector's fault? It thought that this was being discussed at government level.
Patslatt cannot resist the urge to rail against PS employees who have nothing better to do than work against their own interests.
 

ticketyboo

Well-known member
Joined
Oct 21, 2011
Messages
4,944
Times have changed when students can think of renting expensive accomodation that they don't need for 3 months.:lol:
Last couple of years with my own son's experience there was no choice....had to rent for the year....
At first they could vacate at the end of the year...so what to do...pay up or get nothing at the beginning of the next year.
 

patslatt

Well-known member
Joined
Apr 11, 2007
Messages
13,637
There have been no indicators that would suggest the current trend of renting is about to subside. Too much money being made already. That proposal was needed four years ago, not now. Far, far too late to mitigate things.



Landlords are already doing this. Dublin 7 has essentially become a "melting pot" of awful conditions, uncertain rents and overcrowding. You are speaking of a hypothetical situation that simply already exists.

How is this the Public Sector's fault? I guess withdrawing from an active building role, sure, but that was years ago. Can you link us all to these "left-wing economists" who are huge fans of exploitative rent increases?

Some places in Dublin 7 have jumped by 70% in three years. Most between 25%-50%. If it was profitable to be a Landlord in 2011, it is now lucrative as hell.

You are talking about a future that has already come to pass without rent certainty.



Patslatt cannot resist the urge to rail against PS employees who have nothing better to do than work against their own interests.
The current trend of renting by landlords is bound to be a lot less than under the free market as landlords and investors will distrust the present populist politics that will sway decisions on rent increases. Coming up to the general election, there will be pressure to postpone the promised 4% increase for that election year.

If landlords in Dublin 7 are neglecting maintenance now, they will neglect it more under rent controls than under free market rents. That's because their profits and cash flows will be less and because controls will reduce investment in new rental units that would increase vacancy rates in Dublin 7.

Economists dislike rent controls because simple supply and demand models demonstrate that a)there is less pricing pressure on tenants to reduce the space they rent b)investors are deterred from investing in rental housing and that combination results in immediate shortages. As a result, (c) there is a big increase in demand for the fewer units coming on the market,sharply driving up rents for tenants entering the market or re-entering it.

As for the certainty of long term sitting tenant situations in some European countries, investors demand very high rents to compensate for the loss of their property rights. Many of those tenants might prefer cheaper rents in short tenancies but they are deprived of choice and are unaware of the hidden cost.

In practice, strict rent controls have proved very damaging to housing quality, turning whole neighborhoods into ugly slums as happened in low income areas of New York's Brooklyn and South Bronx. At the very least, they cause chronic shortages of rental housing which hobbles the movement of labour, depressing economic growth.

The stricter the controls, the greater is the opportunity for unscrupulous and criminal landlords to expand. They use a variety of dirty tricks to get vacant possession of rental units and raise rents to prevailing higher market levels for new rental units.
 
Last edited:

ShoutingIsLeadership

Well-known member
Joined
Jan 17, 2011
Messages
49,731
Diddums. Those poor landlords renting out places for 1500 a month, will be limited to a 4% annual increase. Yes, this will have them fleeing the market.

Idiot.
 

ShoutingIsLeadership

Well-known member
Joined
Jan 17, 2011
Messages
49,731
The problem with rent controls is that after a few years, landlords start to scrimp on maintenance - its great for a while but eventually it fails.

But the free market is meant to attract a level of competition which when functioning correctly, controls rents. Economics 101, or some patslatt shyte.

In conclusion, in a properly functioning market, landlords will also scrimp on maintenance.

Cos property owners like to see the asset deteriorate in quality and value.

Of course they do.
 

inisman

Member
Joined
Mar 29, 2014
Messages
91
son lost out on green energy degree because he could not get a tax clearence cert on the grounds of not paying prop tax on 2 houses he did not own. one house owned by myself and paid and other a house he rented. 1 year completed and lost 2nd time because you have to start in 1st year 0ne of top students at college and 6month placement in top r.n.d in country. should be a qualifed taxpayer now. on the wellfare now with no hope of completing college. one rule for rich and one rule for the rest.
 
Joined
Oct 8, 2011
Messages
39,553
. . . Patslatt cannot resist the urge to rail against PS employees who have nothing better to do than work against their own interests.
The PS was behind 9/11.
 


New Threads

Most Replies

Top