David Grin Reviews New Legislation Designed to Strengthen Tenant Rights and Protections

New legislation recently passed by the Oireachtas, Ireland’s National Parliament,seeks to regulate rising rental costs and strengthen tenant protections, which have eroded during the recent nationwide housing crisis.

The upper house of the Irish Parliament, the Seanad, recently passed a Residential Tenancies Bill designed to tackle the expanding rental crisis david grin that appears to be sweeping across the nation. Over the last year, politicians from all political parties, as well as, independents have drafted several proposals suggesting a range of solutions to rising rental costs and ways tooffer security to tenants. The new bill, which is a compilation of many http://www.secinfo.com of these proposals, has already been pass by the Dáil and will now be referred to President Michael D Higgins to be signed into law.

Tenant Rights and Protections

Increased Regulation of Rent Pressure Zones

According to David Grin, chairman of Lotus Investment Group – a property and construction finance firm, “There has been a lot of speculation about how the government would decide to regulate Rent Pressure Zones and attempt to curb the persistent nationwide rental crisis. It has left the market with much uncertainty, but now with concrete action being taken, we hope that this measure will offer relief to tenants and help to mitigate rising costs.”

As Grin mentioned, the new bill targets regulation of Rent Pressure Zones, which have been highly criticized for their lack of effectiveness in addressing the rising rental costs. Housing Minister Eoghan Murphy announced several of the proposed measures which appear in the new bill in the Spring of 2018, but it has taken the government time to make significant progress on the issue.

Tenant Rights and Protections

New Measures to Protect Tenants

In an attempt to curb rising costs, the new bill makes it an actionable offence for landlords with properties in designated Rent Pressure Zones (RPZs) to raise rental prices in excess of 4% per year.

The legislation has also extended the required notice period given to tenants to vacate a property and increased the number of areas designated as RPZs. The notice period for tenants in a property for more than six months will increase from 35 to 90 days, while those who have been in a residence between one to two years will now be granted 120 days notice compared with the current requirement of 42 days. The notice period for those tenants who have resided in a property between two and three years will rise from 56 to 120 days. For those tenants in a property less than six months,the notice period for will remain unchanged at 28 days.

The notice period allowances will now also be extended to student accommodations located within Rent Pressure Zones. For these tenants who have been in a property between three to seven years, the notice-to-quit period will now be set at 180 days.

The new legislation also addresses a ‘loophole’ in the current regulation of RPZs that landlords have notoriously been using across the country as a way to raise rental prices. Under the current laws, landlords have been able to terminate tenancies for the purpose of carrying out ‘significant’ renovations and upgrades on the property, which then allows them to put the property back on the market at a considerably higher rental price.

New regulations contained in the bill will also require landlords https://www.instagram.com/david.grin/ to obtain planning permission before short-term letting a property for any period up to a maximum of 14 days in designation RPZs, unless specifically exempt. Violators of this new code could incur up to a €5000 fine.

Tenant Rights and Protections

The Bill Introduces New Enforcement Powers

The new law also substantially increases the power of the Residential Tenancies Board (RTB) to investigate and enforce violations of rental caps by landlords, with some violations carrying fines as high as €15,000. As the current legislation stands, any action of the RTB must be initiated by a tenant or public complaint. The new legislation allows the Board to further investigate any DAVID GRIN residential tenancy in the country, whether the property is properly registered with the board or not. To help the Board maintain proper oversight, it will now be a criminal offence for landlords who fail to register tenancies, neglect to update tenancy details orare uncooperative with Board investigators.

At this time, it is not known when the new legislation will go into effect. The government appears to be determined to take action soon, as the Minister for Housing has requested that the legislature exercise Real Estate its power to expedite the signing of the bill by President Higgins. If this push by the government to accelerate the early enactment of the legislation is successful, the market could see the new regulations come into effect as early as the beginning of July 2019.

Potential Impact of the Legislation

According to David Grin, “The rental market has been in dire need of relief. Currently, property investors, developers and residents have been wrangling with rising demand and sluggish supply, contributing to the current housing situation. Government policies have the potential to go far in providing affordable housing solutions for the Irish people.”

Large-scale institutional investors who maintain several rental tenancies across the country have already made changes to their policies and tenant arrangements in preparation for the new legislation. Those that will be most impacted by the changes brought by the new legislation will likely be private landlords who maintain small-scale operations of two or more rental properties.

Article Source:

https://www.e-architect.co.uk/articles/david-grin-reviews-new-legislation-designed-to-strengthen-tenant-rights-and-protections

A nationwide survey conducted by IReach under the direction of Lotus Investment Group, a David Grin Dublin-based investment management firm, revealed that 78% of Irish over the age of 55 would consider downsizing their residence.

Commenting on the survey findings, David Grin, Chairperson of Lotus Investment Group, said, “Ireland has an ageing population, and this figure will grow in the coming years, so the subject of downsizing as an option to address the housing shortage the country faces has entered the public debate.”

Lotus Investment Group’s research survey revealed that most retirees would consider downsizing their property to save costs, however, there were some deal-breakers—a garden, staying in the same area, storage, and enough space to entertain family were musts. If such criteria were met, the survey found that 78% would downsize. As Lotus Investment Group’s Chairman, David Grin, noted, “It is important for all stakeholders to realise that if downsizing is to be an attractive proposition, then the properties on offer would need to comply with certain criteria, as evidenced by the feedback from our survey.”

Ireland’s property problem

Ireland’s ongoing housing crisis has seen the large-scale purchase of apartment blocks by big investors, something that is now coming under heavy scrutiny and even heavier criticism. In the first three months of 2019 alone, €430 million worth of homes were bought by investors, and Visit this page 1,093 residential units across 12 Dublin developments were put up for sale. During 2018, giant corporations spent more than €1.1 billion on buying a record 2,923 housing units in Ireland—five times higher than in 2017. Dubbed ‘cuckoo funds’ because they snatch up properties before individuals have an opportunity to purchase, it is a trend that is forcing working families and everyday people out of buying their own homes.

While big investors have access to and can recycle funds quickly, national concern is growing over what it might mean for Ireland to have this heavily financed housing market, and the short supply of property for sale has forced a market shift from buying Visit this link to renting. Incited by this increasingly lucrative rental income, big investors will continue to flood DAVID GRIN the Irish property market, adding more grease to the wheel. The latest Dublin Private Rented Sector Investment Report said, “The growth of the build-to-rent (BTR) and institutional investment sector is not a problem for the housing market. It is actually one of the key solutions, as identified by Government policy, and any attempt to curtail its expansion rather than support it would cause damage to the supply and cost of rental accommodation”. Government officials believe that the recent influx of buy-to-let landlords made the development of new apartment buildings viable where owner occupiers or first-time buyers would have failed to.

The sale of these high-profile developments is feeding the Irish public’s perception that developers have dispensed with construction of new homes for individual buyers in favour of apartment schemes for the private rented sector. Government representatives remaining supportive of these mass sales are quick to point out that current statistics suggest only 5% of tenancies are controlled by landlords with 100 tenancies or more. The public, however, is only seeing the serious difficulties this is creating for first-time buyers and older people looking to downsize and made even more acute by the lack of residential development it is causing in areas where the demand is greatest.

Plus sides to downsizing

The property market is influenced by location and age, and the needs of families are different from those of empty-nesters. For example, Lotus Investment Group’s research found that only 25% of Irish aged eighteen to twenty-four would consider remaining in the same area a deal-breaker, while 36% of those over fifty-five would, the understanding being that the older generation simply feel more at ease with familiar surroundings and the networks they have built up. A whopping 50% of those surveyed listed outdoor space, 34% listed entertainment space, and 11%—mostly in Dublin—listed storage space as non-negotiable. David Grin believes that while downsizing has merit, offering new inner-city apartments to retirees is pointless, as most do not have access to gardens or a large enough area for entertaining.

In an effort to address Ireland’s current housing crisis, the government released a new policy in February 2019 entitled 'Housing Options for Our Ageing Population' in which they suggest the State incentivise relocating retirees to “right-size or appropriately sized units”. This policy intends to make bigger, family-sized homes available again to the supply-strapped Irish market. Chair of the Land Development Agency (LDA), John Moran, added that the government should encourage the move to city centre property, making suburban property available to younger families with school-going children, and to Real Estate reduce city property tax for retirees. As Lotus Group’s David Grin notes, the criteria sought by older people are uncomplicated. With some creative thinking and investment, it is reasonable for the State to meet their needs, making bigger properties available to the market again, and easing at least some of the current housing shortage.

Downsizing proved a popular choice for 74% of respondents over 55 years of age. As this demographic is most likely to face the decision in the short-term, this was an important discovery provided by Lotus Group’s survey. Of the respondents who would downsize, only 12% said they would insist on a Government grant to make the move. Struggling to defend its housing policy amid the growing controversy, the Irish Government is considering taxing the so-called 'cuckoo funds' (who, until now, have been exempt from corporation, income, and capital gains tax) if they continue to buy residential property in blocks, and then allocating the funds obtained to incentivising a downsizing scheme.

The UN, through Special Rapporteur on the Right to Housing, Leilani Farha, has condemned the Irish system for allowing these investment funds to monopolise vast quantities of Irish property and then renting them out at grossly high rates, with many government officials calling it the biggest crisis in the country. As Ireland’s housing supply continues to fall short of demand, incentivising the move to smaller properties might be, at the very least, the short-term answer Ireland has been looking for.

Article Source:

https://realtytimes.com/advicefromtheexpert/item/1027928-a-recent-study-by-lotus-investment-group-reveals-downsizing-might-be-the-answer?rtmpage=JamesStevenson

A nationwide survey conducted by IReach under the direction of Lotus Investment Group, a Dublin-based investment management firm, revealed that 78% of Irish over the age of 55 would consider downsizing their residence.

Commenting on the survey findings, David Grin, Chairperson of Lotus Investment Group, said, “Ireland has an ageing population, and this figure will grow in the coming years, so the subject of downsizing as an option to address the housing shortage the country faces has entered the public debate.”

Lotus Investment Group’s research survey revealed that most retirees would consider downsizing their property to save costs, however, there were some deal-breakers—a garden, staying in the same area, storage, and enough space to entertain family were musts. If such criteria were met, the survey found that 78% would https://www.fundky.com downsize. As Lotus Investment Group’s Chairman, David Grin, noted, “It is important for all stakeholders to realise that if downsizing is to David Grin Visit this link be an attractive proposition, then the properties on offer would need to comply with certain criteria, as evidenced by the feedback from our survey.”

Ireland’s property problem

Ireland’s ongoing housing crisis has seen the large-scale purchase of apartment blocks by big investors, something that is now coming under heavy scrutiny and even heavier criticism. In the first three months of 2019 alone, €430 million worth of homes were bought by investors, and 1,093 residential units across 12 Dublin developments were put up for sale. During 2018, giant corporations spent more than €1.1 billion on buying a record 2,923 housing units in Ireland—five times higher than in 2017. Dubbed ‘cuckoo funds’ because they snatch up properties before individuals have an opportunity to purchase, it is a trend that is forcing working families and everyday people out of buying their own homes.

While big investors have access to and can recycle funds quickly, national concern is growing over what it might mean for Ireland to have this heavily financed housing market, and the short supply of property for sale has forced a market shift from buying to renting. Incited by this increasingly lucrative rental income, big investors will continue to flood the Irish property market, adding more grease to the wheel. The latest Dublin Private Rented Sector Investment Report said, “The growth of the build-to-rent (BTR) and institutional investment sector is not a problem for the housing market. It is actually one of the key solutions, as identified by Government policy, and any attempt to curtail its expansion rather than support it would cause damage to the supply and cost of rental accommodation”. Government officials believe that the recent influx of buy-to-let landlords made the development of new apartment buildings viable where owner occupiers or first-time buyers would have failed to.

The sale of these high-profile developments is feeding the Irish public’s perception that developers have dispensed with construction of new homes for individual buyers in favour of apartment schemes for the private rented sector. Government representatives remaining supportive of these mass sales are quick to point out that current statistics suggest only 5% of tenancies are controlled by landlords with 100 tenancies or more. The public, however, is only seeing the serious difficulties this is creating for first-time buyers and older people looking to downsize and made even more acute by the lack of residential development it is causing in areas where the demand is greatest.

Plus sides to downsizing

The property market is influenced by location and age, and the needs of families are different from those of empty-nesters. For example, Lotus Investment Group’s research found that only 25% of Irish aged eighteen to twenty-four would consider remaining in the same area a deal-breaker, while 36% of those over fifty-five would, the understanding being that the David Grin click here older generation simply feel more at ease with familiar surroundings and the networks they have built up. A whopping 50% of those surveyed listed outdoor space, 34% listed Grin David entertainment space, and 11%—mostly in Dublin—listed storage space as non-negotiable. David Grin believes that while downsizing has merit, offering new inner-city apartments to retirees is pointless, as most do not have access to gardens or a large enough area for entertaining.

In an effort to address Ireland’s current housing crisis, the government released a new policy in February 2019 entitled 'Housing Options for Our Ageing Population' in which they suggest the State incentivise relocating retirees to “right-size or appropriately sized units”. This policy intends to make bigger, family-sized homes available again to the supply-strapped Irish market. Chair of the Land Development Agency (LDA), John Moran, added that the government should encourage the move to city centre property, making suburban property available to younger families with school-going children, and to reduce city property tax for retirees. As Lotus Group’s David Grin notes, the criteria sought by older people are uncomplicated. With some creative thinking and investment, it is reasonable for the State to meet their needs, making bigger properties available to the market again, and easing at least some of the current housing shortage.

Downsizing proved a popular choice for 74% of respondents over 55 years of age. As this demographic is most likely to face the decision in the short-term, this was DAVID GRIN an important discovery provided by Lotus Group’s survey. Of the respondents who would downsize, only 12% said they would insist on a Government grant to make the move. Struggling to defend its housing policy amid the growing controversy, the Irish Government is considering taxing the so-called 'cuckoo funds' (who, until now, have been exempt from corporation, income, and capital gains tax) if they continue to buy residential property in blocks, and then allocating the funds obtained to incentivising a downsizing scheme.

The UN, through Special Rapporteur on the Right to Housing, Leilani Farha, has condemned the Irish system for allowing these investment funds to monopolise vast quantities of Irish property and then renting them out at grossly high rates, with many government officials calling it the biggest crisis in the country. As Ireland’s housing supply continues to fall short of demand, incentivising the move to smaller properties might be, at the very least, the short-term answer Ireland has been looking for.

Article Source:

https://realtytimes.com/advicefromtheexpert/item/1027928-a-recent-study-by-lotus-investment-group-reveals-downsizing-might-be-the-answer?rtmpage=JamesStevenson