Sir, – One of the themes featured in coverage of pre-budget Government deliberations is a reported debate about possible measures relating to tenants and landlords between the Departments of Housing and Finance.
Hopefully when considering the scope for helping tenants who don’t qualify for the housing assistance payment, the latter will be mindful of the fact that a substantial chunk of rent paid by tenants ends up in the exchequer.
Regarding availability of dwellings to rent, the argument that tax is not the main reason for small landlords leaving the market misses the key issue; the fact that they are not being replaced because of regulatory factors and relatively unfavourable tax treatment.
Less than 2 per cent of new housing units were purchased by private investors in 2022, and few if any existing rental units are bought for letting because of the rent restriction going with them under the rent pressure zone system.
Scarcity of rental units is likely to be an increasingly serious problem with decline in investment by the much-favoured investment funds due to increased interest rates.
Provision of cost-rental housing on a wide scale, if it can be achieved at reasonable cost, may be the solution in the longer term.
In the meantime, further loss of rental units is likely to keep new rents inordinately high, as well as continuing the dearth of accommodation, with implications also for the wider economy in terms of competitiveness and workforce. – Yours, etc,
DENIS CONLAN,
Celbridge,
Co Kildare.