Rent controls are set to be introduced in Ireland, with the move due to be agreed by the Irish cabinet tomorrow.
It is understood that landlords would only be able to increase rents every two years.
Environment minister Alan Kelly said the measure would be put in place quickly, “certainly” this month.
The rent controls will form part of a package of measures aimed at boosting supply of homes, as a severe shortage of housing becomes a big issue ahead of elections early next year.
Rents in Dublin have been shooting up 10% a year and are almost back to the levels seen at the height of Ireland’s property boom ten years ago, which came before a huge bust and an international bail-out.
Comments (3)
Surely rent control will deter investors and reduce supply? Perhaps Irish economics operate differently to the rest of the world?
It’s a global problem. Investors are piling into the property market all over the world.
What Ireland certainly doesn’t have is a lack of supply:
http://www.huffingtonpost.com/2014/06/11/irelands-suburban-ghost-towns_n_5481028.html
I do wonder if property is moving to be treated more like a utility. Water companies, for example, are heavily regulated because it is recognised that they have a monopoly as – in many cases – having a dual water supply system is effectively impossible. If I own a piece of land in a city centre, I have a monopoly over it as well in the same way.
What does a BTL investor buying a house which already exists actually bring to the world? They effectively use their ability to aquire credit to monopolize land – and at the moment, there is no shortage of people willing to buy that land or living on it… so what’s the problem with deterring ‘investors’?
Look at London and the UK in the 1980’s when you had 2 choices. You purchased a home or lived with parents. There was no where to rent due to rent control. There could be no freedom of movement in the labour market because you could not rent. So I would respectfully suggest BTL landlords have brought much to the world.