When a receiver is appointed to residential rented accommodation
The Irish Banking Federation have produced an information leaflet entitled “A residential tenant’s guide to receivership”. It’s a sign of the times but there are rented properties under the control of rent receivers in almost every West Cork town. For most tenants it is a completely new situation and there can be a lot of confusion over general areas such as deposit return, rental payments and repairs.
On deposit returns - The guide explains that legal responsibility rests with the landlord who originally took the deposit.
On repairs – Repair requests should be directed to the receiver in the first instance.
On rental payments – Unless otherwise stated by the receiver, rental payments should be paid to the receiver which should then be receipted.
Commentators suggest that the guide is very useful but legislation should be introduced in this area to bring better clarity for tenants.
For more information see www.ibf.ie/gns/publications
Not enough new builds
Last year, just 8,300 new properties were constructed. There is an obvious shortage of available properties in certain areas and ESRI (Economic Social Research Institute) has predicted a demand for 12,000 new properties annually for the next 2 years and closer to 20,000 thereafter. 89,000 new properties were built in 2006 which shows how oversupplied the county was.
Current mortgage repayment rates – Example of repayment costs
This is a current example based on a first time buyer borrowing €130,000 for a house valued at €150,000 over 25 years. The current variable rates offered by financial institutions range from 4.45% to 4.9% resulting in monthly repayments of €720 to €750 per month.
New Building Control Regulations 2014
More on this next month but as of the 1st March last, the new Building Control Regulations will impact on you if (a) You are constructing a new building, (b) building an extension of over 40 SqM or (c) materially changing the use of a building.
The Department of the Environment has stated that these new regulations will improve compliance and safety. Critics of the new regulations point to the extra red tape and costs that will be ultimately incurred by the consumer. The main point of the new system is the compulsory requirement for certification of new buildings by an “Assigned certifier”.
Rents for residential properties rose 3.3% nationally last year. Cork city rents are 4.2% higher than last year and the rest of the county is 1% higher.
Interesting West Cork Buildings
This month it’s the Church of the Immaculate Conception in Clonakilty. With a height of 80ft and 5 foot thick walls this building is a masterpiece of the Gothic style. Constructed at a cost of £37,000 the foundation stone was laid in 1870. The Church opened in 1880 and the spire was added in 1898 by Sisk & Sons builders.