The State has, for more than 15 years, exasperated the housing crisis by introducing populist anti property owner legislation. This has had a devastating impact reducing supply. 22,000 tenancies have been lost since Rent Pressure Zones were introduced in 2016. Government policy cannot and should not be developed as a reaction to the hysterical posturing of left-wing politicians and tenant advocacy groups on social media and television. Legislation needs to be considered, measured, accountable and effective. Additional supply is what is required and retaining existing supply is essential.
Extending the rules to 2024 substantially disadvantage landlords trapped with unsustainable rents, negatively affected financially by Covid and those relying on income in retirement. Rental policy should be fair and equitable to all investors.
Harmonised Indices of Consumer Prices (HICP) is not an acceptable or appropriate indices and does not reflect the cost of the provision of Irish accommodation. The provision of accommodation must be sustainable. HICP does not include mortgage interest, building materials, or insurance. Using the index will be difficult, with rates varying from month to month, depending on when a review is carried out.
Rent controls have been proven in other jurisdictions to disincentivise investment and will further hasten the exit of landlords from the market and simultaneously deter new ones from entering. Government policy is to absolve themselves of their responsibility of providing social housing, hoping others will do it for them and then penalize them when they do. Private Investors supply over 90% of property to the market, throughout the country. Investors see this and react accordingly by investing elsewhere except those such as Private Investment Funds heavily incentivized by the Government and supported with taxpayer funding.
IPOA – SUPPORTING LANDLORDS FOR OVER 27 YEARS