Tenants to have a right to purchase at an "independent valuation".

Brendan Burgess

Brendan Burgess

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If you are still a landlord in Ireland, get out quick while you can.

www.irishtimes.com

Tenants to be offered new statutory ‘right to purchase’ when landlord is selling

New legislation aims to shield more tenants from eviction when their properties are being sold
www.irishtimes.com www.irishtimes.com

Landlords selling a property will be obliged to first offer it to the tenant on the basis of an independent valuation under new legislation being proposed by Minister for Housing Darragh O’Brien.
 
No more than the right for leasehold tenants to buy out the leasehold

I am sure that there are plenty of non-constitutional laws and regulations around
 
If a tenant is in a financial position to buy the property from a landlord they can already do so. Any sane landlord would take market price (or even slightly below ) from a sitting tenant over the hassle of listing on the open market.

Lots of landlords will be spooked by this of course, and will rush to sell before the law is passed.

It’s a completely unnecessary policy that will harm many more tenants than it helps.
 
It will make it very difficult for landlords to sell their properties.

Imagine if I want to buy a property.
The auctioneer says "Your offer is accepted but the tenant has 90 days in which to match your offer". I am not going to hang around.
I am sure that the tenant will often go to the court to ask for an extension or to object to a sale.

Brendan
 
Incidentally - which tenant has the right? House share between 3 or 4 would not be unusual - do they each get 90 days?

Totally unecessary legislation - if a tenant can afford to buy, they can make an offer like everyone else.
 
Just another in a series of barriers added to block taking back possession of a rental property, the state 'solving' housing issues at the expense of the property rights of its citizens again. I had already issued notice and I'm glad I did so. I'm not sure this will make many more get out who haven't already done so because the writing has been on the wall for quite some time. Investing in a rental property has just become financing someone else's home for as long as they want it, with capped rent, negative cash flow and a capped sell on value unlikely to beat inflation.
 
Brendan Burgess said:
It will make it very difficult for landlords to sell their properties.

Imagine if I want to buy a property.
The auctioneer says "Your offer is accepted but the tenant has 90 days in which to match your offer". I am not going to hang around.
I am sure that the tenant will often go to the court to ask for an extension or to object to a sale.

Brendan
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This legislation is madness! - not only can the tenant get 90 days to match an offer anyone else makes, if they do match it, the landlord is obliged to let the tenant have it?
It's the landlord's property, they should get to decide to whom they sell it. This will also reduce the number of properties available for non-renters to purchase. So a landlord with property in RPZ with tenants paying well below market decides to sell. Landlords won't want to buy it because they won't be able to set market rent and now people who haven't been renting or have been renting elsewhere maybe at much higher rent while scrambling to save, have less of a chance to buy it because the in-situ tenants, with their well below market rent will have automatic right to purchase it as long as they meet an external offer - no discretion for the seller??
 
Does the tenant have to prove that they have mortgage approval and the ability to buy? Or can they just make offers to scupper the sale to the third party bidder?
 
Greenbook said:
Or can they just make offers to scupper the sale to the third party bidder?
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That would seem to be it.

They will be able to use it to extend their time in the house even if they don't have the remotest prospect of getting a mortgage.

But the next step will be that the Government will start giving mortgages to people to buy their homes from their landlords.

Brendan
 
this change will encourage more investors in residential market and reduce housing crisis.

Who is coming up this guff.
 
If I understand the timeline correctly, the landlord issues notice to the tenant (usually over 6 months notice).
The tenant then has 90 days to make an offer and once it meets an 'independent valuation' the landlord must accept.
The tenant is in-situe in the property for the 90 days, and a further 90 days after that, so good luck arranging viewings for any competing bids.
 
I feel like I have just came out of a coma and it’s 2025 post general election and new government.
 
How have they defined "independent" valuation? Is it 1 valuation, an average of 3 etc???

If the tenant isn't already mortgage approved, it could really add time to the whole process
 
Purple said:
How is that Constitutional?
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Its perfectly constitutional. They get a right to make an offer, and if they don't the sale proceeds as normal. All it really means is that the tenants get a right to advance notice on the sale and a right to put in an offer. If they do not or cannot make an offer that comes close to the valuation then the landlord is under no obligation to accept it.
I'd imagine a lot of landlords do this anyway.
 
Brendan Burgess said:
It will make it very difficult for landlords to sell their properties.

Imagine if I want to buy a property.
The auctioneer says "Your offer is accepted but the tenant has 90 days in which to match your offer". I am not going to hang around.
I am sure that the tenant will often go to the court to ask for an extension or to object to a sale.

Brendan
Click to expand...
I don't think that's what is being proposed.
I think what they want to do is ensure that fairness ensues - like a few years ago I was offered my rental for purchase, and the price was determined by the landladies brother's estate agent, so the price was probably a little higher than it would have been on market. In any case, sale couldn't go ahead as it turned out to have major planning breaches that couldn't be rectified. But it would make sense in a market like ours where a lot of the existing investors are connected to the property trade, that the valuation is done independently (incidentally, had there been nothing wrong with the planning - aka builder had blatantly breached the PP and split what should have been 1 large unit into 2 - even then the price was slightly below market).
 
lff12 said:
like a few years ago I was offered my rental for purchase, and the price was determined by the landladies brother's estate agent, so the price was probably a little higher than it would have been on market.
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This makes very little sense.

A sane landlord will offer it to a tenant at market value or below it for many reasons. No estate agents fees and no void period - tenant will occupy it until day of sale. Likewise ability to sell furniture and no need to tidy house up for viewings.

If I was a landlord selling I’d accept a 5% discount to market value to a sitting tenant.
 
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