CEO Fergal McGrath believes rental reforms will bolster supply and stimulate interest\n<\/p>\n
The lender\u2019s CEO and co-founder \u00adFergal McGrath believes proposed rental market reforms due to come into effect on March 1 will stimulate further interest, a view that contrasts with concerns about the changes triggering a landlord exodus.<\/p>\n
\u201cWe expect the proposed rental market reforms to bolster supply of rental properties and stimulate further interest, especially from professional landlords,\u201d he said.<\/p>\n
Irish-owned non-bank lender Dilosk DAC trades as ICS Mortgages. Its most recent financial results, for 2024, showed 22pc of its balance sheet was made up of buy-to-let loans and 78pc personal dwelling mortgages.<\/p>\n
Rental regulation changes due to come into force from March 1 aim to stabilise the sector by introducing nationwide rent controls, enhancing security of tenure, and placing restrictions on landlords\u2019 ability to evict tenants in order to sell properties with vacant possession. <\/p>\n
Estate agents have reported a surge in smaller landlords looking to sell<\/p>\n
The proposed reforms replace existing rent \u00adpressure zones (RPZs), which limit rent rises and apply to most of the country. The changes will mean that rent increases for new tenancies entered into after March will be capped at the rate of inflation, or 2pc, whichever is lower.<\/p>\n
Existing tenancies will still have rents capped at 2pc, or the rate of inflation, whichever is lower.<\/p>\n
The rule changes will give renters who sign agreements after March 1 six-year tenancies and will ban small landlords from putting their properties on the market without tenants being left in situ, if they move in after that date.<\/p>\n
Estate agents have reported a surge in smaller landlords looking to sell before the new regime comes into effect.<\/p>\n
Figures from the Residential Tenancies Board showed a 35pc rise in termination notices in the third quarter of last year, while the Irish Property Owners Association, a lobbying group, has said the rent reforms \u201cwill damage rental supply and accelerate the exit of private landlords\u201d.<\/p>\n
Dilosk\u2019s experience, in contrast, suggests there are buy-to-let buyers as well as sellers in the market, with professional and potentially larger operators stepping in as the new more regulated and bureaucratic regime drives out \u201camateur\u201d and accidental landlords.<\/p>\n
The lender this week completed a \u20ac230m bond deal that will support further lending. Dilosk, like other non-bank lenders, raises money on the financial markets to fund its loans by issuing bonds secured against its mortgage book \u2013 so-called residential-backed mortgage securities. <\/p>\n
Dilosk said the bond deal was significantly oversubscribed, allowing pricing at the tightest levels to date for a Dilosk buy-to-let deal.<\/p>\n
The price Dilosk and other non-bank lenders borrow at on the market is the key driver of what they will charge borrowers. Banks\u2019 lending prices are mostly driven by what they pay savers.<\/p>\n","protected":false},"excerpt":{"rendered":"CEO Fergal McGrath believes rental reforms will bolster supply and stimulate interest The lender\u2019s CEO and co-founder \u00adFergal…\n","protected":false},"author":2,"featured_media":286115,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,14486,61,60,8649],"class_list":{"0":"post-286114","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-donal-odonovan","10":"tag-ie","11":"tag-ireland","12":"tag-property-mortgages"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/286114","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=286114"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/286114\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/286115"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=286114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=286114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=286114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}