The Government “is continually grappling with the effects of the housing shortage, not the cause,” says the Society of Chartered Surveyors Ireland, in response to Housing Minister’s Simon Coveney’s proposal on rent freezes and caps, in Dublin and Cork.
SCSI president Claire Solon warns that “well-intentioned but ill-advised interventions will have unintended consequences on the market, including an impact on investment”.
She expressed concern new rent controls which Government proposed this week will impact negatively on the residential investment sector.
The rental crisis is mainly due to the lack of supply “and the current situation of unsustainable rent rises could continue until that is addressed”, notes Ms Solon.
She says while understing the plight of those in rental accommodation, it’s vital government interventions in the rental market does not make a bad situation worse.
“While rent controls may well curb rent increases in the short term, they may also curb investment at this critical time.
"Markets abhor uncertainty: the constant flux around policy, taxation and legislation may well lead to investors exiting the market at the precise moment we need investment and supply.”
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