Landlords cry foul at attempts to reduce rents

MEMBERS OF the Irish Property Owners Association (IPOA) are not happy campers these days. Over 400 assorted landlords attended a meeting in Dublin this week where there was much gnashing of teeth over the reduction in the rate of mortgage interest relief and other assorted woes.

Owners complained bitterly that they now faced a lethal combination of negative equity and reduced rents, having invested in the property market. They are blaming both the Government and bankers for encouraging people “to invest in property to look after their old age”, according to the organisation. “Having paid stamp duty, VAT and tax on their income, they now face financial ruin,” the press release continues.

There is the more bad news, too, says the IPOA in that landlords are being targeted by the HSE and Department of Social and Family Affairs officials in an attempt to reduce rents following budgetary measures on the Rent Allowance Scheme.

CWOs (community welfare officers) are advising tenants to demand reductions in rent of up to 10 per cent from their landlords or face the prospect of tenants leaving, following which tenants will be in breach of their rental agreements.

This, plus the €200 levy being imposed on rental property, the 2-6 per cent income levy, the banks refusing to pass on interest rate cuts and the reduction in tax relief on borrowings is leaving many landlords in serious financial difficulties with the distinct possibility of losing their own homes. Landlords, says the IPOA, “will have to stand up and reject this calculated rip-off”. Still, it is good news for the tenants.