Ask the Experts: Will Environment Minister Alan Kelly's rent control measures work effectively?
Published 23/01/2016 | 02:30
The Minister's rent control measures will ensure rents are static for two years for all new tenancies since last year. From a tenant's perspective having rent certainty for two years is very welcome.
Unfortunately these measures will be of little assistance in solving the rental crisis that currently exists.
The only way to do this is to increase the supply of new properties specifically aimed at the rental sector. Incentives are needed to keep the growing number of existing landlords who wish to exit the letting market in place.
New measures in the rental sector have been counter-productive in attracting new landlords.
Keith Lowe is CEO of Douglas Newman Good, which has 75 offices throughout the country. He has 32 years experience in the property sector having joined the firm in 1984.
In my opinion, the new measures will have little effect on the market.
Firstly, the measures will have little or no influence on the levels of supply which continue to be strongly lacking, particularly within the Dublin area.
In addition, the new measures do not affect the level at which initial rents are set at the beginning of a new lease.
In any event, rent reviews would generally have been at 12-month intervals and the new law merely adds an additional 12 months.
Marian McQuillan is the CEO of Quillsen, formerly Gunne Estate Agents and was previously a director of Purcell McQuillan Tax Partners.
They will help, but they are certainly not the cure for all ills.
However it took so long and so much talk for them to happen that many rents had been raised already as landlords feared it may have been the only opportunity they had to do so.
But with that there will be some stability for the next two years.
Pat Davitt is the CEO of the Institute of Professional Auctioneers and Valuers (IPAV). Pat has more than 33 years experience in the sector, spending much of it running a family based auctioneering firm in Mullingar.
They are not going to stop rent increases as they only take account of existing tenancies.
In the case where there is a new letting coming up, the measures will have no effect at all. We may well see longer tenancies being entered into, which is becoming a trend in the UK - with lease cycles increasing from 12 months to two years.
None of this will solve the supply issue.
Darina Collins is a director of and a founding member of the Real Estate Alliance, a partnership of more than 50 auctioneering firms. She is also a partner in REA O'Brien Collins, the Drogheda based general practice firm.