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Irish Property Market chat II - *read mod note post #1 before posting*

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Comments

  • Registered Users, Registered Users 2 Posts: 15,038 ✭✭✭✭Red Silurian


    100% untrue, Paris, Berlin and Washington D.C. all have caps on rents



  • Registered Users, Registered Users 2, Paid Member Posts: 6,574 ✭✭✭straight


    Ya, legally double your rent after subsidising that tenant for 6 years at a likely opportunity cost of over 100,000 euro.



  • Registered Users, Registered Users 2 Posts: 5,046 ✭✭✭Villa05


    I think people should understand that "market" rent is highly distorted by a utterly dysfunctional system mainly caused by government interference

    The market neither serves tenant or landlord. Rent controls, once instigated, accelerate the dysfunction



  • Registered Users, Registered Users 2 Posts: 1 ivan_c


    Hi All

    I tried to find a mod and did message @Graham but doesn't seem to be getting through.

    Hope this post doesn't contravene the rules and if it does, someone might message me please.

    I ended up (kinda unexpectedly) selling my old house and buying a new house last year. I was extremely frustrated with the conveyancing process which took 8 months for the house we were buying.

    As was in the middle of doing a masters, I decided to do my research thesis on "Transparency in Irish Conveyancing" to understand people's experiences and also to understand if a new eConveyancing system might be helpful, cause additional concerns, etc...

    The masters is from TUS (Technological University of the Shannon). It is the Master of Arts in Financial Management.

    I am hoping that you might allow me to post the message below which will hopefully get some feedback to the survey which I'm hoping can help better understand people's problems and make improvements for future buyers. Additionally, and for full transparency, I am happy to share the full survey results with the group once the survey is complete.

    Thanks in advance.
    Ivan C

    ******************************

    I’m reaching out for a small favour please. No request for money or to buy anything, just 3-5 minutes of your life to complete a short, anonymous survey for my Master’s research in Financial Management and specifically looking at Transparency in Irish Conveyancing.

    To be eligible, you just need to be over 18 and have bought or sold a house in Ireland in the last 3 years.

    The research looks at the conveyancing process — specifically:

    • how clear (or unclear) progress and timelines are
    • how communication feels as a buyer or seller
    • whether digital / eConveyancing solutions could make the whole experience less stressful and more transparent

    Details:

    • Takes 3–5 minutes
    • Fully anonymous & confidential
    • Academic research only
    • Captured using MS Forms
    • Link: https://forms.office.com/Pages/ResponsePage.aspx?id=ahmLBlctf0CnDTwFccMmagyLEXYE9GFOvlxP73k__kJUQkVWNkxQUjMxSTVJMjJSSFdSRkxYS0xLTi4u

    Not eligible?
    No problem at all but I’d be hugely grateful if you could:

    • comment for visibility, or
    • share this post with your network

    And if you are someone within a group outside of boards that has gone through the experience, I'd be really appreciative if you could share with those please please. Consider this your philanthropic good deed for the week. 🙂

    Thanks in advance

    ******************************



  • Registered Users, Registered Users 2 Posts: 15,038 ✭✭✭✭Red Silurian


    Market rent is defined as 

    the amount a willing tenant would pay and a landlord accept for a property in an open market, based on similar local properties

    In the current housing crisis market rent is about twice the average rent. The only way of fixing it is to build more homes and to do so quickly. So if by "government interference" you mean "government inaction" I'd be inclined to agree with you



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  • Registered Users, Registered Users 2 Posts: 5,878 ✭✭✭BlueSkyDreams


    In small areas only. Those cities dont have blanket caps across the entire city region like we do.

    Or are you proposing rent caps in certain areas of Dublin only?

    There are way more capitals that dont have any caps at all than those that do.



  • Registered Users, Registered Users 2 Posts: 5,878 ✭✭✭BlueSkyDreams


    You seem to ignore the fact that in order to maximise home building the rent cap needs to be removed.

    If the cap is removed, Investment will flood into the country and more homes will be built. If the cap stays, supply will continue to be restricted.



  • Moderators, Education Moderators, Technology & Internet Moderators Posts: 35,330 Mod ✭✭✭✭AlmightyCushion


    Why would that be the case? A new build can charge whatever rent they want.



  • Registered Users, Registered Users 2 Posts: 325 ✭✭MadeInKerry


    But then they can only increase at less than inflation, yet ongoing costs may increase by more than that. Thats not investable.



  • Registered Users, Registered Users 2 Posts: 5,878 ✭✭✭BlueSkyDreams




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  • Registered Users, Registered Users 2 Posts: 15,038 ✭✭✭✭Red Silurian


    In think there less destructive ways that the govt can get more homes built. Like if they were to reduce the time it takes for ABP to make a decision and fine second-home owners who don't sell or rent their properties... Some councils are very proactive in reclaiming derelict homes

    If the cap is removed, Investment will flood into the country and more homes will be built. If the cap stays, supply will continue to be restricted.

    That's highly unlikely since home building in this country was stalling long before we had rent caps. The only way you could remove the cap is if landlords were less greedy and that's unlikely to ever happen



  • Registered Users, Registered Users 2 Posts: 179 ✭✭thenuisance


    Neither 'Market' rent or 'average' rent are publicly available figures. I believe there were provisions in the Rental Bill to ensure that rents would be included as part of the registration of tenancies. Having seen how much bullshit went on before we were finally able to see house prices in the PPR I wouldn't hold my breath.

    The only publicly available figures are 'Asking prices' on sites like Daft and MyHome. I did know someone who was collecting those on a regular (monthly? weekly?) basis for 1 and 2 bed houses - not sure if they still do.



  • Registered Users, Registered Users 2, Paid Member Posts: 6,574 ✭✭✭straight


    I dont know why every property thread here seems to get overtaken by people like you ranting about the government and greedy landlords, bla, bla, bla. I'm a landlord and I'd nearly consider what I am doing as charity at this stage. All this generation rent BS gets very tiresome tbh.



  • Registered Users, Registered Users 2 Posts: 5,878 ✭✭✭BlueSkyDreams


    The fact remains. No rent cap removal means no big uptick in new homes getting built.

    Landlords need to make a profit. If they cannot do that they will withdraw their asset from the market.

    The cost of doing business goes up every year and so rent rises are necessary.



  • Registered Users, Registered Users 2 Posts: 15,038 ✭✭✭✭Red Silurian


    That's not a fact, it's an opinion. Rent rises are allowed up to 2% per year

    Landlords need to make a profit, this is true. However they don't need to make an excessive profit at the expense of tenants as was happening before rent caps were introduced

    So you agree then that your earlier statement is untrue? Specifically when you said

    capital cities across the world dont have rent caps,



  • Registered Users, Registered Users 2 Posts: 390 ✭✭Bocadilloo


    I viewed a property for sale recently. Met all my criteria beforehand and viewing confirmed my opinion. Emailed estate agents offering asking price.

    Nothing back from agents, no confirmation, no thanks for bid, no thumbs up even. Followed up and got confirmation that email was received but that was it.

    Anyone know if this is normal behaviour or how to proceed here? Property not long on market, in good condition and fair value I believe.



  • Registered Users, Registered Users 2 Posts: 5,878 ✭✭✭BlueSkyDreams


    A maximum 2% rise is a cap, what do you not understand about that?

    Most other cities have no cap whatsoever and my statement about the capital cities is true. Almost all capital cities across the world have no rental cap at all.

    Looking closer to home, there are no rental caps in place in London, Edinburgh, Cardiff or Belfast.

    There are around 200 capital cities in the world and you quoted 3 of them. Even the 3 you quoted only have rental restrictions in small areas of the city.

    Dublin is probably the only capital city in the world which has a rent cap across the entire urban area. We are a total outlier.

    You can argue the case for rent caps all day long but nothing changes the fact that rent caps restrict investment and therefore they restrict the volume of new homes that get built.

    Anyone with even a basic knowlege of economics understands that.



  • Registered Users, Registered Users 2 Posts: 179 ✭✭thenuisance


    I was off looking for something else and discovered this Guardian article from 2024. It's an interesting take on the rental market and how the rise of the individual landlord has affected the rental market. I'm sure the fact that it comes from the Guardian will just trigger some people around here. But the arguments are well made and backed by data and I'd be curious to see specific rebuttals of the arguments.

    https://www.theguardian.com/lifeandstyle/2024/mar/19/end-of-landlords-surprisingly-simple-solution-to-uk-housing-crisis



  • Registered Users, Registered Users 2 Posts: 5,878 ✭✭✭BlueSkyDreams


    The world is much more mobile than it was in the 1940s.

    People want to he able to rent and they dont all want to be tied to mortgages.

    There will always be a place for rented properties in a highly globalised economy.

    I do think the govt will buy up a lot of the small landlord properties for social housing. It would seem the obvious reason for introducing this policy in the first place.



  • Registered Users, Registered Users 2 Posts: 15,038 ✭✭✭✭Red Silurian


    So we've gone from "Capital cities across the world" to "Most other cities" in the context of having no cap, that's progress.

    I think to understand why the cap is here in Ireland you have to bear in mind that some tenants were facing 30%+ rental hikes, during inflation levels of 0. Landlords and their collective greed created this situation for themselves so you really shouldn't feel too sorry for them

    Article below is out of date by just under a year but if 20% of our new builds are going to landlords there's clearly not much of an issue with investment as you claim

    https://www.irishtimes.com/business/2025/07/01/investors-and-state-tied-to-more-than-a-fifth-of-home-sales-last-year/



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  • Registered Users, Registered Users 2 Posts: 5,878 ✭✭✭BlueSkyDreams


    You're still missing the point.

    The rental cap discourages investors from funding new developments because it restricts their yields over the medium term.

    If investors dont invest, builders dont have the money to finance large schemes as the banks generally wont lend the capital required.

    The end result is that less homes get built.

    Thats my last go at explaining it but the takeaway is that rent caps equal fewer homes get built.



  • Registered Users, Registered Users 2 Posts: 347 ✭✭SimpleDimple


    I completely agree, market level is taken as the highest possible within a bracket.

    Also there are zero checks on rent increases when changing tenants. I have said it before, but we moved out from a place where we were paying €1650 and the landlord had it back up for €2350 worth zero upgrades whatsoever the instant we left.



  • Registered Users, Registered Users 2 Posts: 5,878 ✭✭✭BlueSkyDreams


    If the rents are artificially kept low, they will rise higher when they are allowed to reset.

    If the rents arent supressed then any increase will be modest.

    Landlords can only charge what tenants are able to pay. There are more than enough tenants able to pay the market rents.

    Increasing the number of properties for rent allows the prices to stabilise or even fall, once there are more properties on the market than there are people looking to start a rental contract.

    To increase the number of homes being built for rent, we need to remove the cap. Short term pain for long term gain.

    The govt could subsidise rent increases in the short term so tenants themselves only pay 2%.

    The majority of rentals in the country are already subsidised by the govt, so subsidising the increase isn't a big leap to make.



  • Registered Users, Registered Users 2 Posts: 15,038 ✭✭✭✭Red Silurian


    Investors are still investing though at a rate of 20% as demonstrated above. A balance needs to be struck as well as too many homes are going to investors and not enough to people who want to buy their own home. 4 years ago an entire housing estate in Maynooth almost got bought up by a cuckoo fund. 4 years ago we had these same rent caps so your argument that those rent caps cause less investment doesn't hold water

    I've heard these stories before. Completely illegal but with no way to actually prove what the former tenant was paying the current tenants need to rely on the RTB - who more often than not side with the landlord so everybody knows that it's a fools errand trying to fight it



  • Registered Users, Registered Users 2 Posts: 5,878 ✭✭✭BlueSkyDreams


    The majority of homes that are purchased by organisations are bought by the government through local councils and AHBs, not by investment funds.

    Its the govt that is the main player driving up prices and reducing supply in the private sector, not investment funds.

    Youre still missing the point on the rent caps. If 36k homes were built in 2025 and we want to build 50k a year, we need to remove the cap to drive supply upwards.

    If investment funds own 20% of that 50k homes thats fine because they will be the dominant player in the rental sector as small landlords exit this year.

    There are now 50k homes in total, providing accommodation for 100k people.

    If you leave the rent cap in place, we wont get 50k new homes because not enough investors are funding new developments and we stall at 36k new homes per year, meaning we can only house about 72k people.



  • Registered Users, Registered Users 2 Posts: 15,038 ✭✭✭✭Red Silurian


    And you seem to completely miss the point that by removing rent caps rents will become completely unaffordable for most and then you will have an even bigger problem. Since supply was very low beforeion before rent controls were introduced you could also argue that there's very little to suggest removing the rent caps will help boost supply.

    So we would be making rents unaffordable and putting people onto the homeless line in order to line the pockets of the few landlords who are left. Can you not see how such a situation is such a bad one?



  • Registered Users, Registered Users 2 Posts: 5,878 ✭✭✭BlueSkyDreams


    You arent going to understand the point so I will leave it there.



  • Registered Users, Registered Users 2 Posts: 15,038 ✭✭✭✭Red Silurian


    The issue is that we disagree with what happens when rent caps get removed, I believe we fully understand each other. More importantly it's looking like the govt are going to push ahead with getting rid of rent caps so I do genuinely hope that what you say will come true, but I have severe doubts



  • Registered Users, Registered Users 2 Posts: 5,878 ✭✭✭BlueSkyDreams




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  • Registered Users, Registered Users 2 Posts: 7,788 ✭✭✭timmyntc


    The rent cap discussion is nonsense.

    When the idea of a state building company is floated, its immediately claimed (with no evidence) that no extra houses would be built because state would be competing with developers for labour.

    But yet we are supposed to believe that if rent caps are abolished, huge private investment will flood in and deliver more houses?

    With what extra labour??



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