The Irish Property Owners’ Association, the national landlords’ association believe that a rent freeze will substantially damage the private rental market and reduce the amount of accommodation available to tenants.  Rather than help tenants, a rent freeze will result in more landlords fleeing the market causing more difficulty for people in need of accommodation.   It will not encourage investment nor would it assist in retaining existing rental accommodation.   A rent freeze would freeze income without freezing costs.   Maintenance items like services charges, insurance, mortgage interests costs, plumbing, accountancy fees, replacement furniture and fittings will not be frozen.  Renting property would not be sustainable for many existing landlords and they would have to leave the market.

A recent survey carried out by IPOA revealed that 31% of landlords were sub-venting their mortgage from other income, and 71% of landlords were letting below market rent.  25% of landlords had rent 33% below market rent.  Rent Pressure Zones took no account of the level the rent was set when introduced, punishing landlords who rewarded good tenants by keeping the rent below market rent.   Sadly 44% of landlords  surveyed stated that they intended to leave the market in the next five years.

IPOA Chairman, Stephen Faughnan, addressing members stated that “A Rent Freeze would devastate the market, reduce the amount of accommodation available and badly affect tenants and landlords.  Supply is the issue, we need to retain existing accommodation in the sector and encourage new investment.  Letting property needs to be treated as a business, all legitimate expenses need to be allowable and the State needs to stop taking over 50% of  rental income.  The Residential Tenancies Act needs to be simplified to reflect that two thirds of  rental accommodation, is supplied by landlords with less than three properties.” He went on to say “Letting property must be sustainable and investors need confidence and stability.”

Listen HERE to Margaret McCormick speak out on Landlord’s behalf