Government tackles landlords over bankers

I don’t know if anyone else has yet spotted the obvious logic problem with the government’s draft proposals on rent increases.

The main measure seems to be that landlords will have to ‘justify’ any rent increase. The main way to do this appears to be the argument that the increase is ‘in line with increases in rent in the market for similar properties in the area’.

But how will other properties be able to increase the rent, if they too have to wait until someone else increases the rent to create ‘new market levels’?

In other words, no one will be able to ‘justify’ increased rents based on what other landlords are doing, because all landlords will be locked into the same situation.

In practice, the governments proposals translate into a rent freeze at current levels. It’s a pity the government didn’t hatch such an ingenious plan when Irish banks were pushing up mortgage interest rates to double the EU average. The government thinks it’s ok to directly interfere in the free market in rents, but not the free market in bank interest rates.

Nick Folley

Ardcarrig

Carrigaline

Cork