A rental nightmare is coming
Recent policy changes have made it a lot worse
and it's going to impact you one way or the other
I'm Shane Fleming and welcome to my channel
You may be a property owner
or perhaps you're about to buy
and you don't quite care if a rental crisis happens or not
however you should care
In recent years and months
being a private landlord has become increasingly difficult
The media and the general public have turned against them
labeling them as scum that are getting fat on rising rents
Private landlords have been hit with a huge amount of tax
in recent years, including the non-principal private residence tax
which no longer is in place
However, a large number of landlords still have outstanding bills
You also have the local property tax
and many landlords on the private side
are tax as high as 50%,
making it incredibly difficult to have positive cash flow in the current market
Rental caps are new limits on rental increases to inflation
have and will lead to lower returns on capital
and investors will seek alternative investments
The majority approximately 65% of rental stock
in Ireland is currently controlled by small landlords
who have one to two units
due to high taxes, low rental growth due to caps
landlords are leaving in their towns
Some will argue that this is a benefit for owner occupiers
because more supply will be available to them
That is true. However, it will decimate an already small rental pill
changes in self administrative pensions are also going to have an impact
on the number of available rental units
because it's becoming harder and harder
for people to invest in property via their pension
One area where there is actually growth
in the rental sector was from large phones
But due to media pressure stamp duty of 10%
of from 1% were units of 10 or more were acquired was applied
Many people may want to regulate these phones out of existence
However, they are the only source of new rental supply at this time
They only make up about 1% of the overall housing stock in Ireland
on less than 10% of the rental stock
There is a need for more rental stock within Ireland
However, government policy has been pushing private landlords
out of the market for years
Some will argue that this is a good thing
However, not everyone wants to buy
There's plenty of workers or even students
who want to live in an area for a few years
without having to buy
Ireland needs a functioning rental market for economic growths
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This rental nightmare will impact everyone including you
Many companies who are thinking about locating in Ireland
or perhaps even expanding in Ireland
will not expand or locate in Ireland
if their staff cannot find suitable rental accommodation
If that happens
by guarantee you the number one reason
why a huge amount of companies will quote
why they don't move to Ireland will be
because of the rental crisis that is happening
that will have an impact on our GDP
It will have an impact on our economic growth
And ultimately it will have an impact on job opportunities
and it will lead to migration
Ireland is heading straight into a rental nightmare
increased taxes
rental caps stamp duty hikes restrictions on pensions
along with an increase in housing prices
will lead to an exodus of private landlords out of the market
there is 44% less stock on the market in Dublin
than there was this time last year
And overall rental stock levels are at an all-time low
There is a common trend with brand control
and that is that renters are less likely to move out of their current location
This will mean that stock levels and turnover will dwindle
and it will make it even harder and harder
for new renters to get on the market
Rental caps are increases links to inflation
may grab headlines and get public support
But what they tend to lead to is lower supply
and a disfunction in rental market
that works against new renters
and generally speaking leads to poor quality units
This has been the case in major cities all around the world
This issue gets further compounded
if house prices remain high
as more people will not be able to afford
to buy property and will have to remain in rental accommodation
therefore increasing demand even further
At the moment, large investors
are interested in building more rental units
making it harder for them
in planning or adding additional taxes
or banning them from the market
outright will only slow down supply
and compound the rental nightmare even further
Landlords providers Service
without that service the economy will suffer
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