Rental reforms and the new criteria for what constitutes a “large” landlord are at the centre of the concerns
The Irish Property Owners’ Association (IPOA) will today appear before the Oireachtas Housing Committee where they will raise serious concerns about the impact of recent proposed legislative changes on the rental sector, including the constitutionality of restrictions on landlords’ right to sell if they fall under the category of a “large” landlord (4+ tenancies).
In her opening statement to the committee, Mary Conway, Chairperson of the IPOA, will warn that the most pressing issue facing private landlords is the restriction on how they sell their properties, as large landlords will be required to sell with tenants in-situ. Selling with tenants in situ can reduce the property’s value by up to 40%, according to Property Market Intel. The IPOA contends that limiting a landlord’s right to sell a private property on the open market is, in essence, a move away from free-market principles.
Ms Conway will say that:
“Limiting a landlord’s right to sell a private property on the open market will cause a big distortion and acts as a severe financial disincentive for investment – one that banks will react to. Lenders assess mortgage viability based on the market value of a property. The sale of property with in-situ tenancy can devalue the property, leading to higher loan-to-value ratios. The result is that liquidity dries up, pensions relying on property assets are impacted, and we get rental market stagnation.”
The IPOA will argue that such measures could represent a breach of constitutional property rights and that they further erode confidence in the sector.
The uncertainty faced by landlords, paired with the market restrictions, could have a chilling effect on both supply and investor confidence. Data from the Banking and Payments Federation Ireland reveals that in 2024, landlords borrowed just €120 million, a dramatic decrease compared to the €7.95 billion borrowed in 2006. The IPOA maintains that this trend signals a sharp decline in investor appetite and trust in the viability of providing rental accommodation.
Ms Conway will say:
“We are deeply concerned that ongoing policy interventions are unintentionally dismantling the private rental market. This level of restriction may violate basic principles of ownership and due process. If the Government wants to secure long-term stability for renters, it must be balanced with fair and workable conditions for landlords who supply rental homes.”