The Irish rental market remains in serious difficulty, with supply falling and rents relentlessly on the rise. It is a story which is at the heart of the wider housing crisis, making it impossible for many to make the first move from home and difficult for those who are renting to save for a deposit to buy a home. Government policy has tried to help, but as ever in the housing market is driven by a variety of different pressures.
The annual report of the Residential Tenancies Board (RTB), published on Tuesday, underlines one of the key problems, which is the steady reduction in the number of private landlords in the market. It shows a total of 223,979 private registered tenancies, a decrease of almost 22,5000 from the 2022 total. As with so much in the housing market, the argument is not as clear as the headline figures suggest. The RTB has improved its data collection methods and eliminated a lot of tenancies which had in reality ended previously, but wre still recorded as active.
While the fall in tenancies may indeed not have been as sharp last year as shown in the headline data, there is little doubt that it is a big factor in the market. Data from estate agents, for example, has shown that sales of properties by landlords is far exceeding purchases by those entering the market. The Institute for Professional Auctioneers and Valuers warns that this fall in supply will continue to drive rents for new tenancies higher. This leaves the market split between a small number of large investors, often focusing on the higher end of the market via new build-to-rent schemes and a dwindling number of smaller landlords.
Policy needs to change, with the rent pressure zone rules leading to a two-tier market where existing renters are protected but supply is falling and prices rising for those looking for a lease. The Commission on Housing called for a more nuanced approach, but the Government has kicked its recommendations into an inter-departmental committee. The significant level of expertise which went into the commission deserves better. Meanwhile, the underlying challenge of increasing housing supply remains.