Are rent rises almost inevitable next year?

Are rent rises almost inevitable next year?

It’s Budget week next week and no doubt households across the country will be keeping an eye on how it affects them going into 2014.

While it is almost inevitable that we will all be a little lighter in the pocket in some form or another, could it be that those renting will be amongst the biggest losers heading into the New Year?

They’ll be taxed like the rest of us but the price they are paying for their rental property could also be set to increase.

A survey from MortgageBrokers.ie earlier this week found that 49% of the landlords surveyed could not cover the mortgage with the rent they were receiving.

That, coupled with the impending introduction of water charges and a full property tax, means that many landlords will be forced to up their rates.

The energy regulator has already admitted that many renters will see their rent increased once bills for water charges are issued.

There is also a fear that a reported government emphasis on rejuvenating the construction industry could lead to more incentives being made for people to buy.

One of the rumoured stimulus packages that Michael Noonan is believed to be considering is tax breaks for construction companies in order for building to commence in the major urban areas again.

With everyone set to take a hit though, can those renting afford to pay more? And whether they can or not, would it be fair?

No matter what your view, widespread rent increases look to be almost inevitable. What the fall-out of that will be remains to be seen.

There are 6 comments for this article
  1. Tomas at 11:18 am

    The situation is getting more and more rediculous. Bunch of id..ts are running this country into depression. Lack of houses for sale and rent are driving prices up, where are all the houses available during boom years?!! Held by NAMA hidden from the market!! Only way how to squeeze every penny out of the nation! As a tenant I have to pay fortune for a house which is in bits just because landlord don’t have or want to spend money! Wake up! Billions were poured into the black hole banks with NO EFFECT. If the same money would be distributed to each family in Ireland there will be no crisis anymore- every 1euro spend by consumer will generate 5 euro in economy that is confirmed fact!!

  2. Elaine at 4:28 pm

    I love the updates and information from MyHome.ie but sometimes i wish they’d watch how they word things talking about having to raise rental is a must going forward for alot of landlords as we are just about cutting it to keep everything going from the insurance down to property management fees but myhome has said about incurring Bills for water charges i for one will certainly not be paying for my tenants water charges i think it only fair the tenant pay for their own water usage! As we pay out enough, and are stuck with this negative equity for another 20 years!

  3. ihal at 3:00 pm

    I am in negative equity for over 3 years now, have extended my house loan another 10 years due to this, I only get 60% rent from my tenants and have to pay property tax now etc there is no protection for Landlords who were forced to rent out their properties in order to afford to keep them as selling them wasn’t a viable option due to the turn in the market.
    We must replace items, the up keep of the house, pay new rates to come and file an end of year tax return….How can you up the rent when your tenants a)don’t have it or b) refuse to pay it c) leave your property empty D) we refuse to pay our mortgages! None are win win situations!

  4. Ross at 11:54 am

    There is no connection between rent paid for property and a landlord’s debts. Have you ever heard of a landlord saying “I’ve paid off my mortgage so I’m reducing the rent”?

    Rent is determined by supply and demand, the tennant’s ability to pay is the other major factor; most people can simply lower their expectations and rent a less expensive home, or move back to Mum’s place, or double-up.

  5. CMC at 11:45 am

    I have four properties heavily mortgaged and in negative equity that I rent out. I will almost certainly increase the rents I charge next letting. Over the last few years I’ve taken as much pain from government and banks that I can stand and it’s time to recover some income. As a landlord we come bottom of the food chain and have virtually no rights or ability to fight or recover after being stung by errant tenants. I will have a negative liability for another ten or fifteen years at least and I am being hit with a thousand cuts. The banks wont deal and we pay pay and pay.. And I’m one of the lucky ones who have tenants.

  6. Ernie Ball at 11:32 am

    On what planet does the seller’s cost determine what the market will bear?

    Planet Myhome.

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