Thursday, May 28, 2009

Rent Allowance Scheme changes-Landlords in the dock again

As if things weren’t bad enough for landlords at the moment, with falling rents and falling values, together with it becoming harder to secure tenants, the recent supplementary Budget introduced changes to the Rent Supplement Scheme from 1st June 2009. These changes will have a considerable effect on the lower end of the market from a tenant’s perspective. The main changes are:-
The maximum amount of rent for which a supplement can be paid is being reduced.
The minimum contribution which a person pays towards rent is being increased by €6 to €24 a week.
Rent supplement payments are being further reduced by 8%.
From 1st June 2009 maximum rent limits are being reduced by 6% to 7% on average, ranging up to 10% depending on location and household size.

The revised rent limits will apply to new tenancies from 1st June and to existing rent supplement recipients either moving to new accommodation or seeking a review of entitlement from that date.

The minimum contribution which a person pays towards rent is being
increased by €6 from €18to €24 a week from 1 June 2009 and a further
8% reduction is also being made to all existing rent supplement payments

from the same date.

All existing recipients of rent supplement will have their payment
automatically reduced
and each person is being notified by letter of the
details of the reduction in their payment.
Letters are issuing from Monday 25 May 2009.
The letter provides details of
(i) the rent supplement in payment prior to 1 June 2009
(ii) the reductions being made
(iii) the resulting new rent supplement payment from 1 June 2009.

An advertisement was placed in national newspapers and provincial newspapers to advise landlords of the reductions in rent payments. The Department say that given rental market trends and availability of rental properties, landlords are being asked to respond positively to tenants who present their letter seeking a reduction in rent.

Source: Dept of Social & Family Affairs

That is easy for the Dept, but is being forced on landlords without discussion.
Any landlords out there adversely affected by this?

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