Sir, – Mike Allen of Focus Ireland is right when he says that there is "a concerted lobbying effort" opposing any form of rent certainty, (Letters", October 28th). A range of representatives in the property and mortgage industry publish their opposition on a daily basis. Furthermore, they persist in using the term "rent control" when there is no such thing.
“Rent control” was a rigid form of “rent ceiling” or “rent freeze” introduced in Ireland, Europe and the US for the period from the first World War up to the 1970s. The persistently low rents inevitably led landlords to neglect their properties and to dispose of them if possible, thus reducing the supply of rented accommodation. A long-term rent freeze of this kind was unreasonable and in 1981 was found to be unconstitutional in Ireland.
This type of rent control is now non-existent in Europe. Instead, modern “rent regulation” is the norm in countries such as Germany, France, Belgium, the Netherlands, Denmark and Sweden.
While there are slight variations, this modern rent regulation is much more flexible, allowing, for example, rent increases in line with inflation or some other reasonable percentage and taking into account additional costs involved in improving the quality of rented accommodation.
Therefore, rent regulation would provide rent certainty for both landlords and tenants. Surely this is preferable to uncertainty and volatility. There is no credible evidence that landlords have left the sector as a result, as is sometimes claimed. There is no good reason to delay further in introducing a fair system of rent regulation similar to that throughout Europe and Scandinavia. The Government’s advisory body, the NESC, together with a range of tenant organisations have strongly supported the proposal.
Are we really foolish enough to return to the free-for-all free market of the mis-named Celtic Tiger era? Remember that the lack of regulation of markets was a key factor in the crash of 2008 and the consequent suffering still being endured by many.
The real issue is whether the interests of almost 800,000 tenants (and voters) are less important than the views of a relatively small group representing Irish and multinational property. – Yours, etc,
Prof PJ DRUDY,
Trinity College,
Dublin 2.