Sir, – Your editorial (November 27th) on "a critical situation worsening as high rents compound problems for the disadvantaged", underlines that the housing rental market in Ireland is dysfunctional.
If the rental market functioned as it does in Belgium for example, the supply could meet demand or even exceed demand and rent increases would be controlled.
I lived and rented there for a number of years. While no system is perfect, a standard lease is based on a three-six- nine-years principle, where rent can only be increased at the beginning of each three- year stage.
After each three-year period the landlord can ask the tenant to leave if the owner wants the property for a family member but must give six months notice, pay the tenant three- months rent if ejected after a three-year lease and six -months rent after a six-year lease period. Leases are registered with the finance ministry and can only be increased in line with the consumer price index .
What’s in it for the landlord? Tax on rental income is low and based not on the rent but on a notional cadastrel income level; the base for which is reset every 15 years. The result is a very low effective tax rate, whcih on a notional rental income of €1,000-€1,500 per month can be as low as 10 per cent.
It appears that this tax regime encourages investment in property to let, thus creating a healthy supply-side market and keeps rents affordable for the demand side. This mutually beneficial approach for tenant (security) and landlord (good return on investment), would ensure that the Government could get its act together on the rental housing market.
It is not that difficult to fix. – Yours, etc, FRANK KAVANAGH Greystones, Co Wicklow.
Sir – The reason our rental sector is so desperately neglected (Kitty Holland “Nine out of 10 Dublin rented dwellings failstandards test”, November 26th) is because the Government is too lax on private investors in the property market.
Anyone can become a landlord without any licensing or basic knowledge of housing legislation. With the standards set so low, why should we expect any better of landlords?
There should be a proper licensing process where those who want to rent out a property have to be up to date on housing legislation and their duty of care to tenants.
They should be tested on their knowledge and, only if successful, granted a license to rent out property.
We don’t allow people to drive cars without first taking lessons and passing a test, so why should we allow anyone with a bit of extra cash to become a landlord?
We are seeing over and over again greedy investors providing sub-standard housing at exorbitant prices.
Just because someone has money to invest, doesn’t mean they will make a good landlord. We need to stop talking about rentals as investments, and acknowledge that the business of providing a home is a big deal. – Yours, etc, BROOKE NEARY Bray, Co Wicklow.