Changes to rent controls announced - discussion

[Millie*]

No, signing a lease is irrelevant.

It’s the establishment of a new tenancy post 1 March 2026 that will trigger the 6-year cycle.

Hi Serenco
Thank you for your reply
But Im totally lost on this.

I have a lease renewal date 15/9/25.

So I thought I was ok to renew this last time and because I am renewing before 1/3/26 and would therefore be able to sell without restrictions in Sept 26.

I appreciate any advise Im just still confused and I want to get this right.
I want to be able to sell without restrictions.

Thank you in advance

 

[Greenbook]

I have a lease renewal date 15/9/25.

There is no such thing as a renewal date anymore (not since 2004 really). No matter what the lease says it is actually an indefinite one. For example, you sign a one year lease with a tenant. You tell the tenant at the end of the year that they have to leave because you are not renewing. That doesn't work (you'd have to compensate them if the case got to the RTB). The legislation overrides what the lease says and makes it an indefinite one which lasts until the tenant leaves or you evict to sell.

There is huge confusion over this and I've seen professional agents who should know better produce one year leases, but this is how it works. There is no 'renewal' on an annual basis. It is an indefinite lease.

 

[Millie*]

Thank you Greenbook and Serenco for putting me straight.
Really appreciated

 

[Persia]

Be careful to get the documentation and notice requirements 100% right - it’s very easy to make a mistake.

Get a solicitor to manage this, the whole procedure is designed to put you in default. Make a mistake and back to square one with a fly in your ear from the RTB.

 

[Dr Strangelove]

Property just came up for rent nearby.

for short-term letting. (Available until September 2025).

There will be plenty like these I predict.

 

[Persia]

Ah unintended consequences, who coulda seen this coming, if only there was some way to use ones grey matter to, I dont know....scenario plan.

 

[landlord]

The status quo will continue for existing tenancies.

Does this also apply to “big” landlords with more than 3 rental properties? Thanks.

 

[Sarenco]

Yep, that’s my understanding.

Again, that’s on the basis of a press release that had to be pulled and re-issued. Keep an eye on the draft legislation once published.

 

[Pmc365]

..

 

[ClubMan]

I feel I can not sell as huge exposure/ crystallisation to Capital Gains Tax upon disposal.

Why? A huge CGT bill implies an even bigger gross capital gain and a presumably significant net gain.

 

[Pmc365]

..

 

[TomEdison]

The CGT is a separate matter. Approx 27% of the asset value would be handed to the state in CGT if I sold.

Unless you have some reason to think that CGT rates are going to fall in the future (or that the value of the property is going to fall), that 27% figure is only going to rise, the longer you hold the property. If the potential CGT liablity is a problem for you, it's a problem that you are more likely to make worse than make better by deferring a sale.

(You may have other reasons for wanting to keep the property, in which case, fine. But a reluctance to accept that the CGT liability will be what it will be is not a good reason.)

 

[letitroll]

https://www.businesspost.ie/property/we-wont-build-for-the-craic-why-rick-larkins-twinlite-is-quitting-residential-building/

‘We won’t build for the craic’ - Why Rick Larkin’s Twinlite is quitting residential building​

No nonsense perspective from the supply side.......suggest everybody read it.

"After the government announced the full changes to rent controls last week, Larkin spent the rest of that day talking to investors.

“They wanted to know if they can deploy capital in Ireland again,” Larkin said. Their conclusion was “ no, absolutely not”.

Obviously referring to Blackstone below:

"However, Larkin has noticed one particular large US investor, which has trillions of dollars of assets under management, hasn’t called since 2021, which was when the government made its last rent regulation changes.

Larkin said he remembers having “a very frank discussion” with this fund when the government reduced the rent cap from 4 per cent to either 2 per cent or the rate of inflation, whichever is lower.

“They were about to invest hundreds of millions of euros in Ireland into rental housing. Then the government reduced the cap and he described Ireland as uninvestable. He said, 'until that's gone, you needn't call me'. I haven't spoken to him since."

 

[letitroll]

Reading various articles and reports over the weekend it appears that the most damaging change to institutional capital coming into Ireland is actually something that appears quite innocent on the surface but is a major red flag for incremental institutional money.......and that is creation in Irish legalisation of a category of landlord called 'large'.

We all know the political math.....there are more renter than landlords.......so you play to the renters (even though your hurting them long term)......but then landlords & their families vote too.....and so the bulk of the votes are going to be small landlords........so you play to them a tiny bit......the final category is miniscule in voting terms and thats large landlords.....some votes there but a rounding error.

What institutional capital see's......to put bluntly is a TRAP........already lured in with promises of a business friendly country....they got burned twice now in RPZ 2016 and then RPZ v2.0 2021.....RPZ v3.0 2025 is a small rapprochement by a government desperate to turn housing supply numbers around quickly......but the writing on the wall is clear RPZ v4.0 when it comes will hammer large landlords only....its a hostage to fortune........institutional capital can see a knife behind the back of smiling Minister for Housing James Browne or future Minister Eoin O'Broin.....and they ain't going to get rolled over for a third time.

Very sad outcome for the country.