Interest rates – a perfect storm

Sir, – The recent increase in interest rates will hit landlords with another reason to exit the market. With soaring increases in the cost of repairs, maintenance, upgrading and now loan repayments, there is only one escape route for the Irish landlord – sell! Current legislation that prevents rents increases above 2 per cent (even where properties are renting well below the market rate) makes a mockery of residential property being considered as a potential investment.

The State is preventing small residential property investors from making a living due to inadequate planning and preparation and we have also seen the results. There is unfortunately nothing abstract about the results of these strangulating policies – no residential investment as landlords crash out of the market, no properties for rent and tenants in crisis. A perfect storm for both landlords and tenants.

It would be difficult to imagine a more incompetent and tragic outcome in the rental property arena as one views the desperation of those who want to put a roof over their head at a reasonable cost. – Yours, etc,

NEVILLE SCARGILL,