Connect with us

News

Large number of landlords exiting property market

Published

on

0224603_shutterstock447085786.jpg

By Ted Healy of DNG TED HEALY

Alarming new figures have highlighted the growing number of landlords who have exited the market in recent times. More landlords than ever are putting their properties up for sale, evicting tenants and driving a rise in family homelessness, new figures suggest.

There was a sharp increase throughout last year in the number of 'Notice to Quit' issued to tenants, according to the Residential Tenancies Board (RTB), rising from 352 in the first quarter of the year to 958 in the final quarter.

Over half of all such notices were given because the landlord decided to sell the property. Over 600 landlords told tenants to move out because they were putting the property up for sale in the last three months of last year.

Many tenants have difficulty securing new places to live, with some requiring emergency accommodation.

Other reasons given – accounting for almost a quarter of all the 'Notice to Quit' – included that the landlord or a family member intended to use the property themselves. A “breach of tenant obligations” accounted for just 14 percent of the 'Notice to Quit'.

The figures from the RTB suggest 80 landlords a week exited the market in the last three months of 2021.
These are alarming figures indeed which show a large number of landlords looking to exit the market.
The property market crash of the late 2000’s saw Ireland create a large number of ‘accidental landlords’. Improved market conditions in recent times have seen people climb up out of negative equity enabling them to exit the market.

The majority of these properties are being purchased for family homes which in itself is a good thing, but the flip side is a declining number of residential rental properties in the market. At the time of writing there are only five properties listed as available to rent in Killarney; four of which are two bedroom apartments.

So what is the answer?

Incentivise landlords with tax breaks on rental income? Rental income is currently classed as general income incurring full income tax liability. Throw in stricter rent controls and compliance costs and is it little wonder people are exiting the market?

‘Good’ landlords who may not have increased their rent or perhaps reduced their rent over the pandemic period are now, in practice, being penalised with rent controls allowing for nominal increases. They are not allowed to now charge market rent for the property! While the theory of these rent controls makes sense and is certainly required, should a practical common sense approach also be taken in specific cases?

Should Local Authorities be allowed to buy any properties with HAP (Housing Assistance Payment) or RAS (Rental Accommodation Scheme) tenants in place, effectively becoming the landlord?

One thing is for sure, a plan needs to be put in place to slow down the disorderly exit of accidental and semi-professional landlords from the market or the already squeezed rental market faces further difficulties.

Continue Reading
Advertisement

News

Killarney hotels are still open for business

By Sean Moriarty Only a few of the town’s 37 hotels are homing displaced people – according to Bernadette Randles, chair of the Kerry branch of the Irish Hotel Federation. […]

Published

on

0245297_23.jpg

By Sean Moriarty

Only a few of the town’s 37 hotels are homing displaced people – according to Bernadette Randles, chair of the Kerry branch of the Irish Hotel Federation.

This week she said that there’s still accommodation to be found in Killarney for visitors.

She was speaking in relation to the current accommodation situation facing International Protection Applicants and Ukrainian war refugees.

She explained that there is a perception that Killarney has taken in too many refugees and that it is putting the tourism industry at risk as people are starting to think that the town is at full capacity.

“If you can’t get a room in Killarney there is something wrong,” she said. “Maybe with the exception of New Year’s Eve.”

She added that hotels that are providing emergency accommodation are helping off-season unemployment.

Many hotels remain in survival mode after two years of pandemic turmoil and the additional off season business is important, she explained.

“Many could be closed at this time of the year, others would not be operating at full capacity,” she added.

However, she warned the Government needs to put a plan in place before the tourism season starts next year. Some hotels offering emergency accommodation either have a three or six month contract.

“I can see there will be tears next April – the Government must have a long-term plan,” she said.

Attachments

Continue Reading

News

Homing refugees worth almost €14m

By Sean Moriarty Hotels, B&Bs and other accommodation suppliers in the Killarney area have secured contracts in excess of €13 million to accommodate Ukraine war refugees. The Department of Children, […]

Published

on

0245432_TABLE.jpg

By Sean Moriarty

Hotels, B&Bs and other accommodation suppliers in the Killarney area have secured contracts in excess of €13 million to accommodate Ukraine war refugees.

The Department of Children, Equality, Disability, Integration and Youth released figures to the Killarney Advertiser.

Documents show that contracts totalling €13,852,255.00 are being shared between 13 premises in the Killarney urban area.

However, the department warned these figures are “indicative” only and the full value of the contracts depends on “occupancy and actual usage”.

The Eviston Hotel has secured a contract worth €5,727,590.00, the Innisfallen Hotel in Fossa for €2,404,620.00 and The Hotel Killarney signed a deal worth €1,701,000.00. These are the three biggest contracts published in the documentation.

This is only the tip of the iceberg, and Department officials say more contracts could come on stream. Figures seen by the Killarney Advertiser only cover contracted premises up to the end of September this year and updated figures are only released every three months.

“We are in contract with far more, but the formal exchange of contracts can take place sometime after the service commences,” a department spokesperson told the Killarney Advertiser.

“The Department of Children, Equality, Disability, Integration and Youth is obliged to publish a list of contracts formally signed off each quarter that have been awarded under a special EU Derogation that permits the Department to enter into contracts in the context of the Ukraine accommodation crisis without going to formal tender.

“The values of the contracts shown are estimates; the actual value materialises upon occupancy and actual usage. Standard contracts have no-fault break clauses available to both parties so again, the figures are indicative rather than actual.”

These figures only cover Ukrainian refugees fleeing the war and do not include International Protection Applicants.

The Department refused to release International Protection Applicant figures to the Killarney Advertiser.

“The International Protection Applicant accommodation contract information is commercially sensitive information and is not available,” added the Department spokesperson.

Attachments

Continue Reading

Trending