A report on Ireland's 50+ rent control '�pressure zones' has revealed that the policy has led to higher rents and landlords quitting the market.
Commissioned by the Institute of Professional Auctioneers and Valuers and the Irish Property Owners Association, the independent report by economist Jim Power concludes that the Irish government's attempt to control rent rises have '�backfired'.
Ireland introduced '�rent press pressure' zones (RPZs) between 2016 and 2020 within 55 local authority areas including Dublin (pictured) that are similar in many ways to Scotland's failed RPZs.
Power's report will make interesting reading for London Mayor Sadiq Khan, who recently called - once again - for rent controls in the capital.
Power reveals that Ireland's version of RPZs has led to landlords at the lower end of the market quitting, and more economically vulnerable tenants paying higher rents '� the opposite of the intended purpose off the policy.
In Ireland landlords within RPZs can charge what they like for new tenancies, but are restricted by how much they can charge existing tenants when they come up for renewal.
The report concludes that this has led to a two-tier rental market within the RPZs, and also landlords quitting as properties become financially non-viable.
Power says these properties have then been replaced by housing provided by corporate housing providers '� i.e. build to rent '� which are usually more expensive than the properties being replaced.
'This is causing an exit of private landlords from the market and is reducing the supply of rental property and putting upward pressure on rents at a time when significant increases are required to satisfy demand and create a functioning residential property market,'� he said.
A survey of IPAV and IPOA members carried out in tandem with the report found 94% of the 892 respondents blame recent Government policy and regulatory changes for impacting negatively on their attitude to continuing as a landlord.
80% also said they felt that the Government's treatment of private equity funds is unfair when compared to non-institutional residential property investors.
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