Minister Alan Kelly has been very outspoken in recent months and weeks about the rental market in Ireland and rent certainty. Yesterday’s budget was a perfect opportunity to address the issues, yet nothing substantial or adequate materialised.
You would be forgiven if you believe that the increase in residential rent over the last two years is a result of landlords being greedy. This is grossly inaccurate and the reasons in the main are a direct result of the government’s failure to address the issues.
The main reasons rents have increased are the lack of new properties being built, vacant property under the control of the government not released onto the market and increased costs that the landlord has to absorb such as property tax and insurance costs. In addition to these costs only 75% of mortgage interest relief is allowed compared to 100% mortgage interest relief on commercial property.
Even though rents have increased, after running costs, tax and mortgage payments many accidential landlords make a loss, running into thousands each year. The harsh reality is that without the professional and accidential landlords this situation in the rental market would be even worse.
Minister Kelly, Rent Certainty is not the solution. Increase supply, allow 100% mortgage interest relief and STOP blaming landlords.