Sir, – Leaving to one side the rights and wrongs of discontinuing the eviction ban, to see the Government make a decision that runs counter to the simplistic and populist attitudes so pervasive in the political opposition and media is refreshing. – Yours, etc,
NEIL CRONIN,
Mallow,
Co Cork.
Sir, – Perhaps someone can tell me how many landlords we have in Leinster House. – Yours, etc,
KEVIN HOUGH,
Churchtown,
Dublin 14.
Sir, – The accommodation market is made of owner-occupiers and the renters, both of which are important for the societies we live in. Those who have decided to settle down and can afford to do so can opt to become owner-occupiers.
The rental section consists of those who cannot not afford the capital cost of a house, typically most vulnerable, and those who personal circumstances do not suit purchasing a house. Examples of the latter are mobile people early in their career and those just arrived in Ireland. If the rental stock is large enough, competition between these two groups is reduced.
The rental eviction ban was introduced in late 2022, due to fuel and food inflation, to protect the more vulnerable people who rent. A second effect was that rental providers were more likely to leave the market ,many of whom were private landlords who had one or two properties. Institutional investors were more resistant to these shorter-term effects, but they will be more impacted by rising interest rates.
As the supply of rental stock drops, competition between those who rent by choice (the more mobile) and those who rent due to personal circumstance (the vulnerable) will increase, with the latter losing out. The only real solution to this is to have a larger rental sector.
Rental prices caps will help existing renters but will not help new entrants and it will further reduce supply of rental stock. In the longer term (even if new houses or apartments are built), they will dissuade both private and an institutional investors entering the market, particularly the latter who are very sensitive to interest rates.
A healthy and large rental housing stock may be a better path to protecting the vulnerable who seek accommodation and dignified living. Providing targeted support to them could be more immediate and without the negative impacts on rental stock.
However, a negative side-effect, in the absence of more housing stock, might be increased competition in the owner-occupier sector.
Governing and managing a fair and equitable society is not an easy task and quick fixes, although at times necessary, should be always considered in the totality of their effect.
There are no easy answers, just ones which are less bad that others. I am glad I do not have the responsibility of being a politician (and for the record, I am not a landlord). – Yours, etc,
LIONEL BARKER,
Sandymount,
Dublin 4.