Landlords call for return of the bedsit

A landlords representative group has strongly suggested thousands of previously removed bedsits should be brought back if Government persists with its plans to tackle Ireland’s rental crisis, saying “you can’t expect five-star places at two-star prices”.

Michael Noonan

Residential Landlords Association spokesperson Fintan McNamara said the controversial return of the small, low quality properties should be considered to help address housing needs across the country.

Under a new rent deal agreed by Finance Minister Michael Noonan and Environment Minister Alan Kelly last week and which is due to be signed off on by Cabinet tomorrow, landlords will have to fix rent levels for periods of two years.

The new policy, which will become law this month and continue until November 2019, will also only allow rent rises if they are within the 7-10% “market rate”, and will loosen regulation on housing developments.

Mr Noonan defended the latter point last Friday after opposition criticism that it would result in “darker, smaller box apartments”, saying over-regulation has been the problem and that it needlessly took 5,000 bedsits out of the market.

Michael Noonan

Despite the comment being criticised at the weekend, Residential Landlords Association spokesperson Mr McNamara said the Finance Minister is right to consider bringing back bedsits as “you can’t expect five- star places at two-star prices” and that the facilities may suit students and those saving for mortgages.

Mr McNamara said it was not necessary for all apartments to have ensuite bathrooms and that the facilities are “routinely available in Europe” without any issues.

He said while people may feel uncomfortable sharing bathrooms, the bedsit option needs to be considered to cater for the market.

Meanwhile, Mr McNamara has risked sparking further controversy by claiming the coalition’s rent plan will let “the country’s biggest landlord” Nama off the hook and fail to do anything to stop rises from foreign asset management companies.

He said the reality is “Nama will continue on as they always do” by increasing rents on properties because the State body will not find it difficult to meet the new rules which say prices may only rise if there is evidence other homes in the area are also increasing costs, claiming only the “85% of landlords who own two properties or less” and who he said are not the cause of the current crisis will be damaged.

“Nama are the biggest landlord in the country, and they will continue on as they always do. Nama and the lending institutions have been very proactive in cashing in, and so have groups with large property portfolios.

“They won’t have any difficulty in continuing to do what they always do. But the sole trader, the majority of whom were not increasing rents, is going to find it very difficult,” he said.