Charities hit out at report on rented housing
Focus Ireland and Threshold dismissed the Private Residential Tenancies Board report, published yesterday, which claims that rent controls would deter landlords from staying in the sector, leading to a drop in supply and a constant upward pressure on rent costs.
Homeless charity Focus Ireland said well-designed rent control is vital to ensure tenants have a secure and long-term home in the private rented sector, but accepted that introducing rent control in isolation would not work by itself.
Focus Ireland director of advocacy Mike Allen said: “The Government must ensure it is possible for people to find a secure and long-term home in the rental sector. It cannot simply stand over a system that leaves many at the lower end of the market at the mercy of constantly rising rents with no security.
“The failure to act across these issues has led to nearly 400 families becoming homeless in Dublin alone this year, largely because rising rents have not been matched by rent supplement payments. Another 40 to 50 families will become homeless this month and this will continue until the Government takes the range of measures required to calm the market by meeting the needs of tenants, landlords and taxpayers.”
Housing charity Threshold said that regulation was needed to tackle rising rent costs.
Chief executive Bob Jordan said: “This report argues that any form or regulation or rent control would lead to a restriction in supply because landlords would leave the market. However, the last form of regulation for the private rented sector in Ireland was introduced in 2004 — with the creation of the PRTB itself — and, since then, the sector has doubled in size. One in five families now live in rented homes.
“While supply is obviously an issue, and we welcome recent government moves to stimulate housing construction and supply, this will not present the quick fix solution that the PRTB itself acknowledges is needed. Even if the building of new homes started today, those houses will not be available for at least another two years. In the meantime, rents are skyrocketing and tenants need protection.”
Mr Jordan continued: “Threshold is by no means asking landlords to accept below-market-level rents or to be locked into unfair rental agreements. What we would like to see is a system, whereby tenants pay market rates on day one of their tenancy, and are given an assurance that their rent will not increase because of profiteering by their landlords.”
Meanwhile, the Society of Chartered Surveyors Ireland has called for the creation of a builders’ finance fund, a revolving infrastructure fund, and a reduction in Vat and development contributions to aid construction and drive supply to the rental market. Its president, Pauline Daly, also called for rent supplements to be paid directly to landlords.
