Rental market ‘in crisis since 2008’

The rental market and its many shortcomings has finally caught the attention of those best placed to rectify it. Last week the PRTB launched its exhaustive report, “The Future of the Private Rented Sector in Ireland”, while over in Ballsbridge the rental sector was also the main focus of the Society of Chartered Surveyors Ireland’s (SCSI) annual conference.

While the SCSI took a broad industry view, they didn’t mince their words when they described the rental market here as being “in crisis since 2008”, with rent inflation of 9 per cent per annum deemed unsustainable.

The report “A new model for the Private Rented Sector In Ireland”, called for an increase in institutional investment in the private rented sector as well as an improvement in overall standards.

The SCSI says the sector is too dependent on non-professional landlords and pointed up the lack of supply.

"Previous tax treatments supported the entrance of private individuals into the rental market and we are now seeing the consequences with the high number of buy-to-let mortgages in arrears," said SCSI president Pauline Daly.

“We need to encourage more professional investors to enter the market such as pension funds. Consideration should also be given to introducing and extending the 12.5 per cent rate of corporate tax for multi-unit rental companies.”

The report also suggested that an increase of supply would go some way towards moderating rent inflation.