In terms of top prize for political incompetence in 2011, you’d be hard-pressed to find a better example than the farce that has surrounded the issue of Upward Only Rent Reviews (UORR) in commercial leases; remember both Labour and Fine Gael had promised to abolish UORR terms in existing commercial leases so that tenants would no longer have to pay rents which were set in better economic times, and particularly at the peak of the Celtic Tiger when commercial rents were twice today’s levels.
The commitment stymied the commercial property market where transactions dried up as neither buyer nor seller knew what rental terms would apply after the Government’s intervention. And Minister for Justice, Equality and Defence Alan Shatter issued frequent updates where he re-affirmed the commitment, and for many months the stock response to requests for updates from the justice ministry was that a bill would be brought before the Oireachtas before Christmas 2011. And a framework including detailed legislative provisions went to the Attorney General in October 2011.
I am not surprised this shower are only looking after the many landlords sitting in the Dail .
Rent supplements are keeping the property prices artificially high and I am surprised that the IMF hasn’t demanded that the government cut this subsidy to private landlords. Property prices are set to fall a lot further as this new penal tax on people’s homes will deter new owners and may even prompt others to sell out of the rental property business for good .I stated in a posting two years ago that we would see Dublin apartment prices come down to the mid thirties (thirty five thousand Euros) Well a friend of mine told me he sold a one bedroom apartment for 47,500 including a park space two months ago and he is convinced that we will see apartments in the mid twenties in two years time .I would agree with him. I am currently living in Germany and I am renting a one bedroom apartment for 300 Euros a month and 100 extra for heating. I could buy this apartment for 42,500 and this would be in a similar area to D4 in Dublin! Around the corner there is a house with 3 bedrooms and I could buy this for 123,000 and I might get it for 115,000 if I had cash!
I cannot see any improvement in Ireland as long as we have incompetent political gangsters running the country we need a new revolution and cleaned all these public leaches out of the system a new political setup must be brought about centred on the needs of the ordinary citizen and not on the servants of the people as they call themselves. Cronyism must be stamped out.
I do believe that eventually the people will rise up but then even I will be surprised at the extent of the violent reaction against the political leaches that are now sucking the country dry and the collaborators, eager to serve the corrupt moneymen in Europe. The people will have their day they always do eventually so Fine Gael you are been warned the day of reckoning is coming !
- Budget 2012 NAMA announcements: UORR scrapped and a new advisory group (namawinelake.wordpress.com)
- Budget 2012 – a mixed reaction to property-related measures (namawinelake.wordpress.com)
- Fine Gael set to break key manifesto commitment and abandon its pledge on Upward Only Rent Reviews, as commercial tenants face uncertain future (namawinelake.wordpress.com)
- Irish commercial property prices fall a further 4.2% in Q3, 2011. (namawinelake.wordpress.com)
- New protest banner unveiled above Boyzone star’s former place of work (namawinelake.wordpress.com)
- Rent rise for those with commercial property insurance (premierlinedirect.co.uk)
- The Irish Government Will Issue Legislation Against Illegal Downloading Next Month (businessinsider.com)