Government approves legislation to provide for temporary stay on tenancy terminations

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Sarenco

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Chipmunk said:
Have they said yet if the landlord has already served notice, or serves notice between now and 1st November is the termination will continue as normal ?
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From the press release -

Q. What happens if a person has already been served a notice of termination before the winter emergency period?
Any person who has had a valid ‘no fault’ notice of termination served, will not have their tenancy terminated during the winter emergency period. The deferred date for the termination of such a tenancy will take effect based on a number of factors (that is, the date that the notice was served and the duration of the relevant tenancy) on a phased basis between 1 April - 18 June 2023.
 
So it delays up to June 18th at the earliest (up to 8 months) any notice served after the ban comes in force.

That would appear to be highly challengeable as the official period of the 'temporary ban' only runs up to end March.

We are overriding constitutional rights in response to some specific time-limited event remember?

Why are people being blocked from selling in April, May and first hald of June after the so called temporary ban ceases to be in effect?

Presumably, serving notice in the next 2 weeks before the official period starts will allow sale from April 1st and potentially save people nearly 3 months of being locked out of a sale by the government intervention.

Shambolic to say the least.
 
Sarenco said:
Just heard the Minister on the radio.

If I understood him correctly, there will be no moratorium on issuing termination notices and notice periods can continue to run during the moratorium period.

However, "no fault" termination notices cannot take effect during the moratorium period to 31 March and will only take effect after the moratorium period ends on a sliding scale depending on the length of the tenancy.

I would be hopping mad if I issued a valid termination notice months ago and I now have to wait a further 6 months to get vacant possession of my property.
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As a matter of interest, do you know if the minister advised of an explicit end date for the moratorium ? Thank you.

Having come out the wrong end of the "temporary" RPZ introduced in 2016, if I had not already issued termination notices to my few tenants recently, I would certainly have a concern that this proposed legislation is in fact the thin edge of the wedge. Resultantly, I would immediately serve extended notices (1 or 2 year notice periods) to existing tenants (abiding by the most recent RTB rules).

I expect this government decision will stop any further mom & pop investment in BTLs in the Irish market. A Section 23/28/48 lever may be the only way to provide a future kickstart to this section of the market in Ireland... I wonder if this proposed legislation will have an impact on sale prices as investors rush to exit.

To alleviate the exodus of BTL investors, I'm sure one of the more informed posters will be able to put me straight on why the Dept of Finance does not step in to offer a CGT exemption (similar to the 2011-2014) offering and / or tax relief for (ahem...) unearned rental income against PAYE returns over a 2-4 year period. That would slow down the exodus of small BTL investors I expect, at least in the short term. Having said that, personally, based on the various reports outlining this moratorium, I would now have a concern about the continued erosion of asset and property rights for non-incorporated individuals and the possible impact to investors exiting the market normally (sale) in future.

Very much finger in the air numbers, but as a direct result of government meddling, if an additional 6,000 investors exit the market each year, who would otherwise remain, and each (on average, subject to CGT) clear €100K per property and invest overseas instead... that is a notional €600m of wealth per year that is leaving the Irish economy. Keen to be enlightened and corrected....
 
I thought the Covid-era restrictions on termination made huge sense. In a pandemic you don't want people moving around, the market had gummed up anyway, and lots of people were thrust into in financial difficulty.


This new policy is daft, however as the market is more or less in a normal state right now. It will benefit at most a thousand tenants, many of whom have financial or other resources and aren't in need of protection at all.

It will alienate far more landlords who (even if not personally affected) feel that it is just another attack on their property rights.


It will do very little to placate the government's political enemies who will just say it should have been done sooner, or should be permanent.
 
RonnieShinbal88 said:
Presumably, serving notice in the next 2 weeks before the official period starts will allow sale from April 1st and potentially save people nearly 3 months of being locked out of a sale by the government intervention.
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I wouldn't make that presumption.

We obviously need to see the legislation to be sure but the Press Release says that the deferred date for the termination of a tenancy that would otherwise have terminated during the "winter emergency period" will take effect based on a number of factors (that is, the date that the notice was served and the duration of the relevant tenancy) on a phased basis between 1 April - 18 June 2023.
 
Boyddbookman said:
As a matter of interest, do you know if the minister advised of an explicit end date for the moratorium ?
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There isn't really any moratorium - it's a deferral of the termination of tenancies.
Boyddbookman said:
Resultantly, I would immediately serve extended notices (1 or 2 year notice periods) to existing tenants (abiding by the most recent RTB rules).
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That won't make any difference - the termination of the tenancy will still be deferred.
 
Sarenco said:
Imagine you were due to come home from a foreign posting before Christmas and could no longer access your home that you rented out while you were away?
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What's bizarre is that these people are more likely to have a lease with tenants less than 6 months and are particularly penalised - being last in the queue at a minimum of June 23 for vacation:

"Any notice of termination served during the winter emergency period in respect of tenancies of less than 6 months’ duration cannot specify a termination date that falls earlier than 18 June 2023."

Why the need to block these, are they worried that much about landlords who came in changing their minds?
What could possibly cause that!?
 
Sarenco said:
There isn't really any moratorium - it's a deferral of the termination of tenancies.

That won't make any difference - the termination of the tenancy will still be deferred.
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Thank you Sarenco.

Serving the long notice period terminations is not intended as a response to the forthcoming deferral, it would be to ensure a notice to vacate has been issued while it is still legal to do so, even if the notice period is 12-24 months out. It may be too knee-jerk, but one has to wonder what response the Minister for Housing is going to implement to stymie the flood of termination notices that will be effected in Mar-Jun 2023.

I do not follow the reasoning why this deferral of 6-8 months is deemed to have any positive impact. It may just result in an additional number of small BTL investors running for the door.... so in effect it is exacerbating the problem. Although my own long term plan was to remain a BTL investor long term, I am now glad to be getting out.
 
Boyddbookman said:
Thank you Sarenco.

Serving the long notice period terminations is not intended as a response to the forthcoming deferral, it would be to ensure a notice to vacate has been issued while it is still legal to do so, even if the notice period is 12-24 months out. It may be too knee-jerk, but one has to wonder what response the Minister for Housing is going to implement to stymie the flood of termination notices that will be effected in Mar-Jun 2023.

I do not follow the reasoning why this deferral of 6-8 months is deemed to have any positive impact. It may just result in an additional number of small BTL investors running for the door.... so in effect it is exacerbating the problem. Although my own long term plan was to remain a BTL investor long term, I am now glad to be getting out.
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Notices of 12 -24 months are exactly what this government want Boyd, as it gets them to the next election and buys more time. That's the 'positive impact' we are dealing with. This is purely political.
 
RonnieShinbal88 said:
What's bizarre is that these people are more likely to have a lease with tenants less than 6 months and are particularly penalised - being last in the queue at a minimum of June 23 for vacation:

"Any notice of termination served during the winter emergency period in respect of tenancies of less than 6 months’ duration cannot specify a termination date that falls earlier than 18 June 2023."

Why the need to block these, are they worried that much about landlords who came in changing their minds?
What could possibly cause that!?
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I have heard (anecdotal only) that some landlords were only letting for 6 months ie. grant a tenant a 6 month lease, evict at the end of the 6 months and grant a new lease to a new tenant again for 6 months then repeat. Perhaps they are trying to stop this. The 3 month notice on 6 month tenancies may have been introduced with the same idea in mind
 
Perhaps they should consider why LL might be doing this rather than destroying supply completely.

They won't though.
 
The new legislation was discussed by Pat Kenny on his show today. He spoke about “throwing people out at the side of the road”.
Very emotive language for an Irish audience.
A bit of balance from the media would not go amiss.
 
Thinking about this a bit more, this legislation is going to result in a glut of termination notices all taking effect next Spring - even with the phasing proposed by the Minister.

You have all the deferred terminations from this Winter, plus all the terminations that would take effect in Spring in the ordinary course.

That is going to put even further pressure on the rental market over a condensed time period.

Every government intervention in the rental market is just adding to the dysfunction.
 
This is a shambles. Nobody will buy a BTL in this country again. Too much government interference. They will regret this when an avalanche of eviction notices land next week. Did I hear correctly that this ban extends to licensees/ room to rent ?
 
Mamamia22 said:
This is a shambles. Nobody will buy a BTL in this country again. Too much government interference. They will regret this when an avalanche of eviction notices land next week. Did I hear correctly that this ban extends to licensees/ room to rent ?
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Yes you did hear right. The USI are demanding that full tenancy rights are extended to licensees. Can you imagine - you offer digs in your house to a student in the local university and they have full tenancy rights in your home and you can't evict them? Who in their right mind would offer a room to rent in future? Obviously no one in USI is studying economics!
 
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