Just heard Eamon Ryan on the radio say that the cabinet has agreed that tenants will have a right of first refusal where the landlord is selling up.The idea that a landlord has to offer first refusal to buy to their tenant has been suggested by the Green Party.
How do they think this stuff up ?
Do they want every tenant in the country evicted on 1st April ?
Is such a suggestion constitutional ?
it's real back-of-the-fag-packet government.How could the creation of a right of first refusal not require legislation?
By decree of the good Minister?
Tenants not able to buy | Tenants willing and able to buy | |
Landlords willing to sell at market price to tenant | Legislation irrelevant | Legislation not needed |
Landlords not willing to sell at market price to tenant | Legislation irrelevant | Legislation needed |
That's a great description. I'll use that one.it's real back-of-the-fag-packet government.
You only need legislation where a tenant is willing and able to buy and a landlord is not willing to accept market price
My thoughts exactly! If the tenant can't afford to buy they go into some cost rental scheme where the local council buys. I can only just imagine how long that will take. How they think all this is going to encourage landlords in to the market is beyond me.These new proposals might effectively be an extension of the eviction ban because all of the red tape required to ascertain if the tenant can afford to buy (including mortgage approval delays?), getting them in a position for first refusal, entering them on one of the affordability schemes if they can't get a mortgage etc. will take forever. Especially given the backlog of eviction notices. If government regulations result in overholding of a 6 month notice period by design are they legal? Can the owners right to sell in e.g. 6 months be overridden by ministerial decree without an eviction ban?
Exactly.It has always been open to tenants to put an offer to their landlord and it’s always been open to a landlord to accept or reject that offer.
and the whole thing can be endlessly delayed while the 'interested' tenant trys to get a mortgage, tries to get the local Council to buy the property etc. etc. This just seems to be a stealth eviction ban.Exactly.
It would be a capricious or foolish landlord who would not accept an offer from a sitting tenant consistent with what he'd been advised that he'd get on the open market.
There will be a whole administrative apparatus put in place now to force landlords to make offers to tenants the vast majority of whom will have no interest in buying.
I don’t understand this comment.Those availing of this option will also be able to claim back up to 30 per cent of the purchase price of their home using the First Home scheme, he said."
Well, the quote is attributed to Ryan, so I wouldn't really expect it to make sense.I don’t understand this comment.
Maybe it will. Possible also that the Help-to-Buy scheme - which can be combined with First Home - will be extended to the second have market.To be eligible for the First Home Scheme the property must be a newly built house or apartment.
By definition, an existing rental property cannot be a newly built house or apartment.
Is the State going to create a shared equity scheme for properties in the second hand market?
They're looking for fig leaves to cover Eamonn Ryan's embarrassment at having agreed to end the eviction ban. Quite a small fig leaf will do nicely.The Government really does seem to be at sea at the moment.
Here’s a report of Bryan Dobson’s interview with Eamon Ryan -
How could the creation of a right of first refusal not require legislation?Govt set to win vote on end to no-fault eviction ban
The Government looks on course to win tomorrow's Dáil vote on ending the no-fault eviction ban.www.rte.ie
By decree of the good Minister?
I very much doubt it.Is it possible that what Ryan intended to say was that the change could be implemented by secondary legislation. i.e. Statutory Instrument, rather than requiring an amendment to the primary legislation? (I don't know whether that's possible, but maybe that's what was in his briefing note, which he didn't understand!)
I see RTE are now reporting that the First Home Scheme will be extended to cover purchases in these circumstances.Maybe it will. Possible also that the Help-to-Buy scheme - which can be combined with First Home - will be extended to the second have market.
Secondhand houses and new houses are not perfect substitutes, but not far off.How that promotes new housing supply - which is what we need - is beyond me.
There's no evidence whatsoever that the many thousands of owners who have sold in the past few years have used any of the proceeds "to stimulate housebuilding" or to return to property investment in any form. Most of the ones I've met are relieved to have escaped the madnessIf the state bought up tens of thousands of existing houses the owners would use the proceeds to stimulate housebuilding. It's probably not the most efficient way of doing it but more housebuilding is the objective.
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