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New tenancy laws to watch out for in Ireland Part 2

new tenancy law in ireland


new tenancy law in ireland

If you have problematic tenants, you may have noticed that it’s becoming harder and harder to ask them to leave. There’s a big reason for that, and it has to do with new legislation that aims to protect tenants.


One recent law that has been passed is that landlords can no longer easily evict tenants to sell or even renovate the property. Landlords who do so can face very strict penalties otherwise. 


This is just one of many other new laws that were passed as part of the new Government policy to further the rights of tenants. It may also aim to address the rising rent prices across Ireland recently. 

Speaking of which, why are rent prices going up so much these days?

It’s primarily due to a lack of supply of affordable housing units. Based on statistics from Savills Ireland, more than 11% of the housing supply in the country last year was purchased by large corporations as investments. With the decrease in supply for individual tenants, the price of rent for available homes would predictably go up. As more and more corporate investors buy up land, rent would just keep going up.

Adding to the fact is the lack of construction of new and affordable housing. 

With no new homes being built, and with corporate buyers purchasing most of the available properties, the supply generally stagnates while the demand steadily increases. Similarly, this situation will only drive the cost of rent upwards. If this trend continues, rent will steadily increase further over the years.


So, now what?

If demand continues to shift in favour of large corporate buyers, unfortunately, more and more rental properties will go to them. In turn, the number of affordable housing units available will dwindle. 


If large property developers, however, are willing to construct more homes to increase the supply and offer those at reasonable rates, then this housing crisis may be averted. But unless you’re one of those large developers, it’s hard to influence the housing supply.


For renters, it would be wise to prepare for more rounds of rent hikes. For landlords, on the other hand, it pays to be gradual with the increases in rent. This way, you won’t be forced to evict your tenants, which is now a much more arduous procedure given the new legislation.

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Redfords Properties Ireland