Allowance system ‘ignorant of market’
THE system which decides rent allowance thresholds for Co Wicklow has been described as ‘illogical and ignorant of the reality in the market’ by west Wicklow auctioneer Simon Murphy of REA Murphy in Baltinglass and Blessington.
According to Mr Murphy, the level of subsidy allocated along county boundaries reflects ‘a lack of imagination and necessary focus at Government level to genuinely assist tenants in need of support to secure or retain accommodation’.
This in turn, leads to significant stress for existing tenants relying on State support.
He said that the rental market throughout the county is ‘extremely diverse’ with availability and rent levels within the commuter-belt areas significantly impacted on against existing tenants according to REA Murphy.
As is the case, across most of Wicklow, there is also a significant shortage and demand for rental properties in the west of the county.
‘Recent rents for three-bed houses in the Blessington area confirm rent levels of €1,200 and more per month while rent levels drop as you head south along the N81. Rent of €800 per month will secure good quality property in the Baltinglass area while further south, family homes can be rented for €650 per month. Properties can be successfully rented before coming to the market if a landlord so wishes,’ Mr Murphy said.
He said that better engagement with the property industry, is more likely to result in focused assurance for tenants in need and that the current rent allowance thresholds are not serving the market well.
‘To apply the same rent criteria to north and south Wicklow is both illogical and ignorant of the reality in the market place. Suggesting that Bray is the only place in Wicklow warranting an increased rent subsidy aligned with Dublin compounds the insult to tenants in the rest of north and mid-Wicklow. Consequently, people who have built their lives in north Wicklow and mid-Wicklow are experiencing high difficulty in holding existing accommodation. While the 24-month embargo on rent increases brings a certain stability for tenants extending that time-frame it is not the answer,’ he said.
Increasing supply is the only way to control rent levels, he believes. ‘It is important to acknowledge that landlords are a necessary part of the supply of rental property. Tenants require rental property and the best way to control rent levels is to increase supply. Increasing dis-incentives against landlords will only serve to reduce supply from current levels and prevent any increase in supply levels.’
He added that addressing the 52 per cent tax level applied to rental income could also help alleviate the current crisis. CAROL Hogan and her partner Alan have been renting the same property privately in Arklow for the past eight years while remaining on the Social Housing waiting list for over ten years.
The couple currently live in Knockmore in a three bedroom rented property they share with their four kids aged fourteen, seven, five and two.
Carol has actually been on the list for over 14 years, four by herself and ten as a couple with Alan.
‘We aren’t on the RAS Scheme because it would mean we lose our place on the housing waiting list. Alan works and neither of us collect social welfare. I stay at home minding the kids. If I worked it would cost us an absolute fortune in childcare fees, around €400 to €500 for each child. We just couldn’t afford that.
‘I feel like we have been forgotten about. The levels of frustration would drive you mad. I have to say Wicklow County Council have been a lot more helpful than Arklow Town Council ever were. We are receiving much more feedback. Wicklow County Council seem to be doing a proper job and going through the correct procedure.’
Carol also considers herself lucky that she has an understanding landlord who hasn’t placed the family unit under pressure by demanding rent increases, but the uncertainty over what the future holds remains.
‘We would be in big trouble if the rent was raised but at the moment we aren’t at risk of being made homeless and our landlord has been great and we are very grateful for that, but it’s still not our house. We can’t paint it or put our stamp on it like we could our own home. It is stressful on us. The uncertainty and lack of security is what gets to you the most. We know that we could just be given three months notice and we would have to leave.’
Carol also feels that she and her family have been left in limbo when it comes to securing a more permanent home, with a lack of savings making it impossible for them to secure mortgage, despite have spent €65,000 in rent at their current accommodation where they have been living for the past eight years.
‘We only have around €40 left over every month from living expenses and rent. It makes things really hard. Because of our lack of savings, we can’t get a mortgage, even though we have proved we are reliable tenants. The €65,000 we have spent on rent over eight years is pretty much the equivalent of paying a mortgage over that time. I think the banks shouldsh look at that as evidence that we would be a reliable couple when it came too mortgage repayments. We may have no savings but we have proved we are reliablee at making payments.’
One vacant local authority owned house faces Carol’s current abode and sheh regards that as the ideal location for her and her young family.
‘It’s difficult when you have four kids involved. Three of the kids have lived here in Knockmore all their lives. They have friends here and I wouldn’t want to move them away from that. All the neighbour’s kids are friends with us. My eldest found it difficult when we first moved to Knockmore. He had to leave his old friends at a young age and it was difficult for him. I wouldn’t want my other kids to go through the same thing.’