Louise Morton understands that Fianna Fail will today pledge to increase the Rent Supplement allowance as post of proposed measures aimed at the Rental Crisis. It appears that they will also suggest capping rents to be in line with similar properties in that area. Louise Morton suggests that this will be very difficult to implement at a local and national level without wholly accurate comparables being made available in a most transparent manner. Incentives they claim will also be proposed to entice Landlords back into the Residential Market.
In reality these measures if introduced will only become evident in years to come and will not aid the current rental crisis. Louise Morton believes that there is a complete lack of urgency in dealing with this crisis. Under the RTA 2004 restrictions are already placed on Landlords on the setting of rent above market rent, it also limits the frequency with which reviews may occur, a review may not occur more than once in a 12 month period. Therefore these proposed capping measures are already in place, tenants also have security of tenure under a Part 4 tenancy which allows tenants to remain in place for 4 years once they are not in contravention of any of their lease obligations. The Government need to encourage Residential landlords back into the Rental market through tax incentives perhaps like the previously introduced Section 23 style whereby tax relief will be granted on a certain portion of the rental income earned.
In addition, Louise Morton of Wexford Rentals & Property Management believes that increased costs imposed on Residential Landlords by the State is placing more pressure on the Rental Market and ultimately the end user – the tenant! The basic costs of providing rental accommodation is rising resulting in INCREASED RENTS! Of the rent received by Landlords nearly 62% is passed onto the Govt by way of Income Tax, USC, PRSI and Local Property Tax. 71% of Irish Landlords have insufficient income from their rental property to cover their mortgage repayment. This is unsustainable!! Commercial Investors are treated more favourably in tax law than residential investors even though this sector is aiding the Government by providing homes for the Rental market!