A Clare real estate agent believes the abolition of rent pressure zones would be welcome if it brings about a system that supports both tenants and landlords.
Fears are being expressed that those living in rental accommodation in parts of Clare could be left with fewer protections very soon if there’s a shift in Government housing policy.
Alarms were sounded over the weekend when Taoiseach Micheál Martin said the Government will be exploring “alternatives” to rent pressure zones between now and the end of 2025 when they are due to expire.
Clare’s only designated RPZs at present are Ennis and Shannon and in these areas, rents can’t be increased by more than 2% within a twelve-month period.
Clarifying his earlier comments, the Taoiseach says the Government is examining a Housing Commission recommendation to instead introduce “reference rents”.
This system would tie the amount landlords could charge in rent to factors like property location and size.
Liam Browne of Paddy Browne REA in Ennis claims the current system is pushing landlords out of the market while also not serving tenants.
The suggestion that a move away from rent pressure zones could be on the cards has been welcomed by groups representing landlords like the Irish Property Owners Association which says it’s evidence the Taoiseach “recognises that rent pressure zones haven’t worked”.
Irish Institutional Property meanwhile says rent controls here have resulted in a “significant drop off” in apartment building.
The Taoiseach’s comments have been condemned by many in opposition however, with People Before Profit saying getting rid of RPZs would “give landlords and vulture funds a free hand to do what they like” while Sinn Féin says it would be tantamount to “sacrificing renters to investment funds”.
Clarecastle Sinn Féin Councillor Tommy Guilfoyle says given the challenges facing renters, their needs should be prioritised over those of property owners.
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