Landlord's Dole

NotInventedHere

An estimated 1 billion a year is being spent on rent allowance in Ireland. This has led to an artificial floor on rental prices. Due to the perilous state of the countries finances is it not time to abolish this scheme and let rental prices find their true level. I also thing mortgage interest releif should be scrapped too.

What would be the consequences of this? Would it be fair?

snubbleste

Did the FG manifesto not explicitly say they were going to phase out rent supplement in favour of RAS?
I think all politicians are too affiliated to the landlord class to remove the state supports in place tbh.

Irish Times - Progress is impossible when denial is a policy

Finnbar01

They should phase it our eventually.

Also, I never understood why rent supplement was given to single people renting out houses on their own. We should change it for renting out a room.

GSF

NotInventedHere wrote: »

This has led to an artificial floor on rental prices.

And it puts an artifical floor under house prices too. If house prices fall more, the amount required to recapitalise the banks increases and round and round we go........

Finnbar01

GSF wrote: »

And it puts an artifical floor under house prices too. If house prices fall more, the amount required to recapitalise the banks increases and round and round we go........

I don't get this. The homeowner would be in negative equity but once they continue to pay the back their mortgage, the banks will not be affected.

Also lower house prices may actually stimulate the market.

GSF

Finnbar01 wrote: »

I don't get this. The homeowner would be in negative equity but once they continue to pay the back their mortgage, the banks will not be affected.

Also lower house prices may actually stimulate the market.

Rental yields are keeping a floor on house prices. Drop the rental yield and house prices will fall more. So more negative equity, requiring more write downs on loans in the banks.

dan_d

I will say that (knowing someone who rents out a place to tenants) I don't understand paying 700eur a month to people to cover their rents. Obviously it's not always 700eur, it can vary from that, but it seems way over the top. The whole system seems completely twisted.

But then maybe my view is bitter and twisted from claiming the dole for months and still keeping on top of my mortgage payments. Maybe it's me that's the idiot.

I no longer know...

Weltsmertz

NotInventedHere wrote: »

is it not time to abolish this scheme and let rental prices find their true level.

What would be the consequences of this? Would it be fair?

What a ridiculous idea. How about if instead the new FG govt ended the provision of social housing and instead massively increased payments to private landlords. Introduced a new landlord dole scheme called HAP and used it to give a few hundred million a year directly to private landlords.
What do you think the effects of such a policy would be if carried out for say the next eight years.

Quin_Dub

Zombie Thread

Please don't re-open an 8 year old thread.

If you want to discuss the topic of Rent allowance, then please feel free to start a new thread.

Thanks