May 2024

The continuation of Rent Pressure Zones (RPZs) and indefinite tenancies only constrict rental supply further, IPOA continue to work on Landlords behalf in this regard.

 

We launched our Election Manifesto this week, warning that rental supply will be further constricted with the continuation of Rent Pressure Zones (RPZs), and indefinite tenancies. We have appealed to all election candidates to use their voice to take urgent action.

IPOA Manifesto – CLICK HERE

RPZ legislation is due for review by the end of 2024, we urge Government to earnestly consider the negative impact RPZs have had on the market since their implementation in 2016. Property owners across Ireland know first-hand that RPZs are driving smaller landlords out of the market and forcing them to sell up because of the direct impact on rents but also the capital value impacts on properties. These lessons have already been learned across a multiple of jurisdictions where

• Germany introduced rent-freezes in February 2020 which were subsequently struck down in April 2021 and tenants retrospectively had to pay back-rent to their landlords, causing chaos
• Ontario, Canada learned that simply having a discussion on rent controls in the 1970s had a cooling effect and caused rental supply to decrease
• In Sweden, rent controls leftover from war times mean that it now takes between 7 to 11 years to secure an apartment
• In Argentina, rent controls were introduced in 2020 and caused an estimated 45% of landlords to sell their properties with many others shifted to short-term letting.

Furthermore, our election manifesto outlines how the introduction of legislation on indefinite tenancies is driving private landlords out of the market, as this latest policy serves to erode and infringe further on landlords’ rights. The vast majority of landlords (90%) are content with their tenants, however indefinite tenancies restrict landlords’ ability to manage their properties according to their own needs and circumstances.

These two pieces of government policy, combined with soaring inflation, tax and administrative burdens have led to a decline in available accommodation in Ireland and has encouraged a culture of subletting and two-tier markets, forcing smaller landlords to operate within increasingly tight margins. The rental market is overly controlled by legislation intended to protect tenants, but which is having the unintended consequence of exacerbating supply issues and making the situation even worse for tenants and landlords alike.

With over 2000 property owners supplying homes to families across Ireland, we are urging election candidates to find their voice and work with us, and policy-makers, to enhance supply. The continuation of unfair policies will only serve to worsen the housing and homelessness crisis by causing rents to skyrocket and supply to drop.