This comes as new figures show that in July the average asking rent in the country was just over €835 per month, down 5% on the same time last year. This took the decline in rents from their peak to 27%,according to Daft.ie. However, the figures show there were further signs of stabilisation in the residential rental market in quarter two.
A receiver of rent takes receipt of rental income relating to properties where the mortgage is in arrears, and pays it to the lender.
Stephen Lyons of Davy said the biggest problem area in the Irish banks’ residential mortgage books is the buy-to-let sector. He said that while stabilisation of rents is encouraging, the banks noted in their recent results that rent diversion rather than rental pressure or voids was the major cause of stress.
He said that in Britain the appointment of a receiver of rent is adopted practice in such circumstances but is not a feature of the Irish market.
“I think its something that could be investigated. But the legal aspect of it would need to be put in place. The UK approach seems prettyeffective and it also benefits the tenant,” he said.