Rent rule changes will 'lead to tsunami of eviction notices', warns Cork councillor

Proposed changes to current rules on rental price increases could incentivise landlords to evict their tenants, a Cork homeless service worker has said, as a councillor says they will “lead to a tsunami of eviction notices”.

Under the current system, increases to rent in areas designated rent pressure zones (RPZs), must be less than 2% or the rate of inflation, whichever is lower. There have been fears that this system has discouraged private investment in the market.

The new system, to be discussed by Cabinet this morning, would see a system for newly-built homes, whereby landlords can increase rent in line with inflation.

It is understood that enhanced tenancy protections will also be brought in, minimising no-fault evictions.

Increase

For existing tenancies, landlords will now be able to increase rents by more than 2% between tenants by resetting rents to market rates after a tenant moves out — this has sparked concern that landlords will choose to evict tenants so that they can increase the rent.

Paul Sheehan, head of communications and campaigns at Cork Simon, told The Echo that there are already a lot of people going into homelessness as a result of an eviction from a private rental home.

“We would see a high percentage of presentations to emergency accommodation from the private rental sector, which there’s huge pressure on at the moment.”

On the proposed changes to RPZs, he said the system appears to be adding another tier of renting, “and it’s difficult to know if that will be a good thing.”

“There is no clarity on whether the proposed eviction moratorium will apply to existing tenancies,” he said.

“Also, there appears to be an incentive for landlords to evict tenants, take back properties so that they can reset the rents. That’s an issue that we particularly need clarity on soon.”

Speaking to The Echo, Solidarity — People Before Profit councillor Brian McCarthy said that the new system “clearly signals the Government’s intention to continue to prioritise the profits of wealthy landlords over the lives of renters already struggling to keep a roof over their heads”.

“This is going to lead to a tsunami of eviction notices so landlords can jack up the rent to extortionate rates, which are already unaffordable for many people.”

Four-tier rental market

Cork South Central Sinn Féin TD Donnchadh Ó Laoghaire, said that the changes will create a four-tier rental market — people in newbuilds in RPZs, new tenants in existing properties in RPZs, people in existing tenancies in RPZs, and people living outside RPZs.

Mr Ó Laoghaire said the plan “is utter madness and will have a devastating impact on renters in Cork”.

“It is likely to lead to immense confusion — but the key point is this — landlords will now be able to increase rents way beyond what was previously permitted, and will be creating an incentive to evict tenants to allow for increased rents,” he said.

His party colleague in Cork North Central, Thomas Gould, accused the Government of “throwing renters to the wolves” with the changes.

“I have no doubt we will see increased notices to quit,” he said.

“These changes will also incentivise landlords to evict tenants in existing rental stock to avail of the ability to reset rents to new market rents.

“At a time when rents — both inside RPZs and outside, and for new and existing tenants — are already too high, the Government’s proposals will come as another body blow.”

The TDs encouraged Cork people upset about these developments to the Raise the Roof protest on June 21 at 2pm at the National Monument in Cork.