Sir, – The Daft.ie report confirms the reality that rent control results in a reduction of available accommodation ("'Unprecedented scarcity' of homes drives rent price inflation to 5.6 per cent", Business, August 10th). The report only deals with rent for properties advertised to let on their portal and does not reflect the level of rent of existing tenancies. Rent control resulted in a reduction in supply, and since 2016 we have lost 21,985 tenancies and 9,514 landlords. The reduction in number of tenancies is worrying when it is noted that the reduction is in spite of the number of rental units recently built and let in the market during that period by institutional investors. Recent research commissioned by the Residential Tenancies Board (RTB) shows 26 per cent of landlords intend leaving the market. It is evident that this exodus is happening. Retention of rental property in the market is of equal importance as encouraging new supply. Rent control has also introduced a growing black market where some tenants are charging other tenants' higher rates in house shares and increasing their income while the income of the owner who is providing the accommodation and responsible for the mortgage repayment, standards, repair and maintenance is restricted.
The cost of the provision of accommodation is high, and income must be sustainable. Rent pressure zone (RPZ) legislation does not take into account the level of rent being charged or the indebtedness of the investor. For five years we have had a two-tier market, without equity or fairness. Arbitrary and punitive legislation appears to be acceptable in Ireland when landlords are the target. In the interest of fairness, there needs to be a mechanism to increase rent where it is substantially below market rate, and the removal of the RPZ restriction when property is sold, allowing a new purchaser to obtain market rent. – Yours, etc,
STEPHEN FAUGHNAN,
Chairman,
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Irish Property
Owners’ Association,
Dublin 15.