Housing charity helping 75% more evicted people since 2019

Threshold warns there will be an increased number of people living in hidden homelessness, sleeping on couches, on floors, in cars or rough sleeping.

The number of tenants being supported after receiving eviction notices each month by the housing charity Threshold has risen by 75% since 2019.

In an opening statement at Tuesday’s sitting of the Joint Committee on Housing, Local Government and Heritage, Threshold representatives will highlight that the charity has supported an average of 462 private renters per month this year who have been evicted — up from 263 per month in 2019.

 According to the charity, 58% of private renters who have contacted them this year were given notice to quit by landlords who were intending to sell the properties.

The charity says it is hearing that some local authorities are unable to provide emergency accommodation. 

Increased homelessness

Threshold warns: “This will mean an increased number of people living in hidden homelessness, sleeping on couches, on floors, in cars or rough sleeping. These people will not be counted in the official homeless figures.” 

And the charity says that renters are more at risk of going cold this winter due to lower energy ratings in rental homes, warning: “It is highly likely this year that many renters will go without heating their homes.” 

The meeting will also hear from the Irish Property Owners Association, which has concerns about the impact of inflation on insurance and maintenance costs for owners of private rental properties. It says the recent 1.25% increase in interest rates by the European Central Bank will also increase mortgage costs for owners.

The issue of taxation on rental income, as well as “taxation issues around inheritance”, will also be highlighted by the association.

Prebudget submission

In a prebudget submission, the association and the Institute of Property Auctioneers and Valuers, recommended a new 25% rate of tax on rental income, including USC and PRSI. 

Chairperson of the IPOA, Mary Conway, will tell Tuesday’s committee hearing: “The private investor is taxed at a marginal rate of up to 55% whilst the private equity fund/REIT pays 0% tax on rental profit, once they exit the market within a defined period.” 

She will add: “The ramifications of not doing anything are so great that it threatens the provision of housing across the country. Failure to address the current policy and legislative anomaly will also result in the exacerbation of housing supply which will have further knock-on effects such as undermining Ireland’s attractiveness as a place for foreign direct investment to set up.” 

Committee chairman and Green Party housing spokesman Steven Matthews said the meeting will give the committee an opportunity to hear from both sides of the private rental market.

And he said it is important to hear from representatives of providers of rental homes “to hear about the pressures they are under”.