Sir, – I am writing in response to an article by John McManus, where the author rubbishes the idea of an exodus of small landlords from the private rental market (“Exodus of small landlords from the market has been greatly exaggerated”, Opinion, December 15th). It is essential to bring to attention a number of key points that merit consideration.
Firstly, the Sherry FitzGerald report as cited in the article, focuses on individual properties, while the Residential Tenancies Board report appears to be addressing individual registrations.
This distinction is crucial in understanding the nuances of the data presented and the true scale of the exodus of landlords from the market.
Additionally, when the term “units” is used, it is worth noting that this may encompass diverse dwelling types, ranging from single-family homes to properties containing multiple individual units.
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This clarification is vital for a comprehensive understanding of the landscape being discussed.
However, amidst these distinctions, the overarching concern remains the pressing issue of demand significantly outweighing supply.
Tenants are grappling with limited choices in terms of property type and location, emphasising the urgent need for more property owners in the market.
This is borne out in various reports including a chief executive survey from Ibec (January 2023) that states that more than 70 per cent of companies identified the availability of housing for staff as a challenge to their business’s operations.
The identified exodus of landlords can be attributed to a confluence of factors, including Rent Pressure Zones (RPZs), tax implications and regulatory challenges.
The imposition of RPZs has disrupted the economic model, creating an unsustainable situation for landlords. With fixed rents and variable costs, the system is broken, particularly as interest rates rise.
An unsustainable system such as this can only lead to defaults and with it a rise in evictions or the transformation of affordable multi-unit properties into single houses or luxury accommodation, silently contributing to the lack of affordable rental options.
The resultant lack of confidence in the stability of the market, coupled with a risk-reward balance, has undoubtedly contributed to a noticeable trend of property owners leaving the rental market.
Addressing these challenges is crucial for ensuring a healthy market that meets the needs of both landlords and tenants.
Policymakers must carefully consider the implications of current regulations and work towards establishing an environment that fosters confidence and equilibrium for all stakeholders. – Yours, etc,
MARY CONWAY,
Chairperson, Irish Property Owners’ Association,
Ashtown Business Centre,
Dublin 15.