What was Bobby Molloy up to last week when he announced that he was setting up a commission on the rental sector? The Junior Environment Minister is keen to give tenants a better deal but he is also hoping to encourage investors to buy more rental properties now that the market has become much tighter and rents are rising on a monthly basis. Amazingly, Mr Molloy is asking the commission to investigate how they can increase the flow of funds into rental properties to increase the supply and also to identify any current constraints.

Surely he doesn't need a commission to remind him that investors were frozen out of the market in April, 1998, when the Government implemented the Bacon recommendations and refused to allow investors to off-set mortgage interest payments against their rent roll?

This move effectively killed the investment market, particularly for apartments and new homes. It also led to a flow of funds to the UK where investors are happily setting up companies to buy and rent properties in London and other cities.

The minister has stressed that he is looking for a `positive overall outcome' for the rental sector. If he is serious about this then he should set about withdrawing the restrictions on residential investors, something that might well be unconstitutional.