Irish Examiner view: Flip balance of power from owner to renter

Radical measures needed to tackle housing crisis

The cost of housing, in general, is reaching such levels that only radical measures can counteract them.

The cost of rent across Ireland has increased nationally at a rate of 7% for the second quarter of 2021, a level of increase that the Residential Tenancies Board (RTB) has described as a “source of concern”.

That’s putting it mildly. The cost of housing, in general, is reaching such levels that only radical measures can counteract them. If the Covid pandemic has shown us anything it is that, in an extreme emergency, extreme measures are needed. 

We have reached that point when it comes to rental costs, in particular. 

Our rent controls are simply not working. Some rogue landlords are defying the cap that applies in Rent Pressure Zones, while the decision during the summer to align rent increases with inflation could make matters worse as inflation is on the rise again.

German solution

One solution might be to follow the example of Berlin where rents have gone up by 45% in five years. 

The solution they chose was to have a referendum to expropriate housing from corporate landlords. 

All housing owned by large for-profit companies would be compulsorily purchased by the State, for the public good. The referendum passed. 

While the measure does not cover all rental properties, it flips the balance of power in favour of the renter rather than the owner.

We have had 38 amendments to the Irish Constitution since it was enacted in December 1937. One more wouldn’t hurt and it might, in fact, help considerably.