Threshold on the eviction ban

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Brendan Burgess

Brendan Burgess

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John Mark McCafferty from Threshold was interviewed on Morning Ireland.

Unfortunately, the interviewer, Áine Lawlor (?) kept interrupting him and would not let him reach a conclusion.

So I don't know whether he wants to see the eviction ban lifted or not.

But he did say that the government is facing an impossible decision. If they lift the eviction ban, there will be an immediate short-term rise in evictions. If they don't lift the eviction ban, small landlords who are key to providing accommodation at the lower end of the market, will continue to leave the market because of the uncertainty. And then instead of asking him what he would advise the government to do, the interviewer immediately moved onto modular accommodation. He came back to the difficulty of the decision, and again, she went on to something else.

Brendan
 
Perhaps the Morning Ireland producers feared he was ready to destroy the government's credibility on the eviction ban so they decided not to let him enunciate his argument sufficiently to make that point?
 
Brendan Burgess said:
If they don't lift the eviction ban, small landlords who are key to providing accommodation at the lower end of the market, will continue to leave the market because of the uncertainty
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Either way both Threshold and Focus Ireland at this stage admit to the large unintended consequences of the regulations steadily introduced since 2016 and that the interests of renters (particularly low-income ones) are not well served.
 
T McGibney said:
destroy the government's credibility on the eviction ban
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First of all they played Micheál Martin's comments in the Dáil yesterday which set out the problems which would be caused by extending the ban.

www.rte.ie

Extending eviction ban may make matters worse - Martin

Tánaiste Micheál Martin has given the strongest indication yet that the Government is unlikely to extend the ban on no-fault evictions at the end of next month.
www.rte.ie www.rte.ie

So it seems to be slowly getting through to some people that it's not a good idea.
 
In Ireland we should be very wary of temporary measures.. Their impact can be quite long lasting.
 
Threshold are calling for tax breaks for small landlords in return for 10 year minimum leases.
its effectively an eviction ban in return for a tax break,
Given that rent can only go up max 2 % a year, in 10 years, the most a landlord can hope to get in rent is 20% extra.
Mortgage costs, RTB costs, Property tax, inflation will eat away any tax benefits and landlords will be left with a sitting renter should they wish to sell
Banks won't lend easily on properties in this situation , so cash buyers/funds will do well.
I for one am getting out.
Let shouting politicians have their way and see how populist ideas play out, It took 7 years to get to this point with the temporary introduction of RPZ's, until they are gone i don't see any viability to this sector
 
updadubs said:
Threshold are calling for tax breaks for small landlords in return for 10 year minimum leases.
its effectively an eviction ban in return for a tax break,
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I have not read their proposals but as you describe it, it's not an eviction ban.

It's reasonable to propose that in addition to the normal leases and normal tax treatment, some incentive would be offered to landlords who give 10 year leases.

Then landlords would be free to offer these 10 year leases or not. (They would be mad to do so for the reasons you outline.)

Brendan
 
The market is broken and they put forward solutions that private landlords would be mad to accept.
That's really going to sort the issue then!
They keep on focusing on a small part of the market that needs long-term, life-long tenancy. In doing so, the market is disrupted and every potential renter is affected.
I have never rented to anyone for 10 years, just 3.5 years max. They left of their own accord.
 
The 10yr proposal is yet another sticky plaster.

@updadubs You are totally correct. it's not attractive for a landlord to lock in for 10yrs. Fine for corporate, state or council backed schemes, but not private landlords.
For any measure to work, they need to look at the whole of the measures applicable in RPZ. Without that, IMO, further meddling will just make it worse.
 
Luternau said:
@updadubs You are totally correct. it's not attractive for a landlord to lock in for 10yrs. Fine for corporate, state or council backed schemes, but not private landlords.
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I don't think there's much demand for ten-year leases from tenants either. Most people in the PRS would like to buy in the coming years.


The 2011 Michael Noonan policy of a CGT exemption for landlords who hold a property for seven years was a really effective one, and got cash buyers back into the market. It's a pity this was time-limited.

A new reduced or zero CGT rate for landlords who hold a property for ten years would in my view bring a lot into the market.
 
I think that when they speak about 10 year tenancy. They are thinking about no option at all for LL to get their property back during that time.
 
All tenancies are lifelong after 2020, but the landlord can evict to sell or move in a family member.

Threshold's proposal is that there can be no eviction on any ground (save non-payment of rent etc.) during the 10 year lease
 
Is Threshold is so concerned about small landlords leaving the sector why are they campaigning for an 'NCT' for rented properties? Their proposal is that without passing this NCT landlords would be prohibited from letting a property. How many dwellings would this remove from the private rented sector? Do Threshold know? Do they care?The real problem here is the 'policy by twitter' nature of government intervention in the private rented sector. There is no coherent policy direction and constant policy change based on whatever intervention the NGOs are pedalling at the moment with no modeling of the impact any of these changes will have on supply.
 
Mocame said:
Is Threshold is so concerned about small landlords leaving the sector why are they campaigning for an 'NCT' for rented properties? Their proposal is that without passing this NCT landlords would be prohibited from letting a property. How many dwellings would this remove from the private rented sector? Do Threshold know? Do they care?The real problem here is the 'policy by twitter' nature of government intervention in the private rented sector. There is no coherent policy direction and constant policy change based on whatever intervention the NGOs are pedalling at the moment with no modeling of the impact any of these changes will have on supply.
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Most policy in the area is from the NGOs like Threshold. Up until recently, they got everything they asked for policy wise and look where that has left tenants. I think the penny is finally and very belatedly beginning to drop. It may be too late now though, it is now impossible to persuade many landlords to stay.

The NCT is a pet project of John Mark McCafferty who is the head of Threshold. He's been banging on about it for years. You are right, no joined up thinking on the consequences of such a test.
 
Greenbook said:
All tenancies are lifelong after 2020, but the landlord can evict to sell or move in a family member.

Threshold's proposal is that there can be no eviction on any ground (save non-payment of rent etc.) during the 10 year lease
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I think we'd see quite a few landlords sign up to this if the ability to evict for non payment and some other issues was fixed.
 
With the constant changes in legislation, who knows currently what is going to happen in the next 10 years. Rent freeze, selling property with in situ tenant...
 
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