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Large number of landlords exiting property market

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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.

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30 years of Innisfallen Island MassThe annual special concelebrated Mass on Innisfallen Island takes place next week.

Next Friday (June 21), members of the public are invited to attend the Mass taking place at 6.30pm. Now in its 30th year, the Mass was originally an idea by […]

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Next Friday (June 21), members of the public are invited to attend the Mass taking place at 6.30pm.

Now in its 30th year, the Mass was originally an idea by Geoffrey O’Donoghue who sadly died four years after it began.

“There was an Augustinian Monastery on Innisfallen Island and the people, including priests and monks and they say Brian Boro, went out there to study. The lake, Lough Lein is called ‘The Lake of Learning’,” said his wife Mary who carries on the tradition in his memory.

“My husband Geoffrey was a descendent of the O’Donoghues and he wanted to have Mass on the island. The O’Donoghues built Ross Castle and owned the lands and the lake surrounding it which was later donated by John McShane to the people of Killarney. He [Geoffrey] asked one of the friars and one day he got a call from the OPW that there would be a plaque unveiled to John McShane and they asked if the Mass could coincide with it. It was attended by Sr Pauline, John McShane’s daughter.”

She added that all the public are welcome to attend. Boats, which will have a nominal fee to cover their costs, will be carrying passengers out from 4pm onwards.

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Photo of “hidden gem” wins Camera Club’s latest competition

A photograph of one of Killarney’s hidden beauty spots was deemed the winner of Killarney Camera Club’s most recent competition. Th standard was high throughout all categories but in the […]

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A photograph of one of Killarney’s hidden beauty spots was deemed the winner of Killarney Camera Club’s most recent competition.

Th standard was high throughout all categories but in the Novice category, Iryna Halaieva’s photograph of O’Sullivan’s Cascade was deemed the winner.

“A waterfall is my favourite waterbody and long exposure is my favourite photographic technique,” she said. “I do my best to have as many waterfalls as possible in my photo collection. I heard a lot about O’Sullivan’s Cascade and wanted to visit that hidden gem of Kerry. So, shortly before our club competition I went with a friend to Tomies Wood to photograph it. It was a dream come true for me.”

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