Pre budget Rpz and inflation

M

moneymakeover

Registered User
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Hello

Previously the rule was 4% rent increases

Now it's inflation or 2% whichever is lower?

In a time when inflation is 9%... rent increases are limited to 2% ?

First want to check if what I'm saying is correct

And then what can be done to change things
 
I would expect tax treatment of landlords to be relaxed significantly in the budget. I don't see them allowing rental increases more than 2%, it would be political suicide to do so. However by not doing so, more landlords will leave the sector.
 
If as expected interest rates increase 0.5% in September then my interest-only repayment will have doubled = 100% increase.

Why am I constrained on increasing rent but banks are not constrained limiting mortgages?
 
moneymakeover said:
If as expected interest rates increase 0.5% in September then my interest-only repayment will have doubled = 100% increase.

Why am I constrained on increasing rent but banks are not constrained limiting mortgages?
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Because you're a landlord.
The State is spending nearly a billion Euro subsidising the supply side of the rental market.
They are also the biggest purchaser of property in the private sector, property which they then remove from the private rental market.

That's a big part of the reason your rent receipts are as high as they are now. In other words that subsidy and that spend is already benefitting you as a landlord.
 
There is a certain logic on what you're saying. The property market is off balance.

But the landlords getting below market rates, what about them?
 
DazedInPontoon said:
They're still by and large struggling a lot less in life than people whose rent is increasing faster than their wages
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The main driver of rent increases is State intervention in the market. They are removing rental units from the private rental sector and they are inflating prices by increasing HAP.
 
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