Landlords warned Taoiseach new rent rules would 'decimate Ireland’s private rental market'

One couple considered whether to rent out a property at all, or whether it would be 'more prudent to hold it vacant or reconsider our plans entirely'. File picture

The Taoiseach was warned by dozens of landlords that new rental rules would “decimate Ireland’s private rental market” and increase homelessness levels.

In correspondence sent to Micheál Martin from members of the public released to the Irish Examiner under Freedom of Information (FOI) legislation, landlords expressed concerns about an “exodus” of landlords leaving the market.

New rental rules came into effect from March 1. This resulted in the introduction of six-year tenancies, which prevent landlords from increasing rents each year.

After the end of the six years, the landlord can then “reset” rents to market rates. They can also reset rent to market levels if a tenant decides to leave their lease early. This only applies to leases entered after March 1.

Emails sent to the Taoiseach before the enactment of these laws implored him to halt their implementation.

One correspondent claimed the rental legislation would “absolutely decimate the private rental market in Ireland”, as they bemoaned the introduction of six-year leases.

A couple who wrote to Mr Martin said they were in the process of buying a new-build to rent out as an investment.

They noted that the most “striking” part of the process was that “not a single professional we have dealt with has advised us to proceed with becoming a private landlord”.

“On the contrary, almost every advisor has cautioned against it — including solicitors, accountants, and even the builder of the property itself,” they wrote.

“The consistent message has been that, under the current and proposed regulatory and tax environment, the risks for small landlords far outweigh the potential returns.

I believe this is a concerning signal for the health and sustainability of the private rental market.

They noted that they were questioning whether to rent the property at all, or whether it would be “more prudent to hold it vacant or reconsider our plans entirely”.

One landlord told the Taoiseach the Government was “pushing me into a corner to sell the one rental property I have, which is in my family for generations”.

Another said they had bought their house in 2003 for their pension fund. They had been renting to a family in receipt of the housing assistance payment (HAP). Due to previous rent pressure zone (RPZ) legislation, they are earning 55% of the market rate rent.

“As my Government, you have hindered my ability to provide for my wife and myself in our retirement with those restrictive regulations,” they added.

One landlord in their 60s with four houses told the Taoiseach that the new rules were “discriminatory towards our property rights as laid down in the Constitution”.

“I now have, after all my years, no option but to terminate my tenancies and sell as many of my colleagues are doing,” they added.

“I think this legislation will over time wipe out the smaller landlord who historically provides lower-cost accommodation as distinct to corporate landlords who charge huge rents, which has always distorted the yearly rent increases reported by RTB (Residential Tenancies Board).

“This is going to be a disaster for tenants by greatly reducing the availability of good quality, lower-priced accommodation options and also greatly increasing homelessness.”

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In the documents released under FOI, all concerns were raised by landlords, not tenants.

However, separate correspondence released to the Irish Examiner by the Department of Housing shows some renters did raise concerns with housing minister James Browne.

One tenant said that they had noticed “decent/genuine landlords” leaving the market.

• Louise Burne is a political correspondent for the Irish Examiner