Ireland’s largest corporate landlord has clarified that a 25 per cent “potential increase” in its rental income relates to a “cumulative portfolio-level projection” over at least a decade.
I-Res Reit manages more than 3,600 rental properties, mainly across Dublin.
The company’s statement comes after Tánaiste Simon Harris accused Sinn Féin of “scaremongering and misinformation” over claims Government legislation could see rents for new tenancies rise by up to 25 per cent.
Sinn Féin finance spokesman Pearse Doherty echoed comments in the Dáil by party leader Mary Lou McDonald that from Sunday (March 1st), when the Residential Tenancies Bill comes into effect, corporate landlords can “jack up rents” and make millions of euro more in profits.
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Under the new rules, tenancies started after March 1st will have a minimum term of six years. Landlords will also be able to reset rent to market rates in new tenancies started after this date.
Last week, the company’s investors were told the Government’s substantial changes to rental and other regulations will “stimulate investment” and “accelerate the development of much-needed homes across Ireland”.
New tenancies set to reset to market rents from March 1st, which will “gradually bring rents across our portfolio back to the prevailing market rate over time as units turn over”, said I-Res chief executive Eddie Byrne.
He told investors the company’s rents have been independently assessed as about 20 per cent below market value. Its portfolio had a 14 per cent turnover rate last year and in 2024, but the company expects this could drop to 10 per cent this year.
“The opportunity to realise this embedded reversion is substantial, and we expect it to translate into enhanced returns for the company and our shareholders,” Byrne said.
In the Dáil, Doherty said Ires Reit told investors about “enhanced returns” and “projected a staggering, eye-watering 25 per cent increase in rents, with minimal additional costs, as a direct result of your policy”.
That is “over a period of 10 years,” the Tánaiste said. “You left that out,” he told the Sinn Féin spokesman. “So let’s not scaremonger over rents increasing by 25 per cent in March. No existing tenancy will see any change.”
He said that from Sunday “there is no change at all for existing tenancies – none, zero, no change. That’s really important.
“What does come into place from the first of March is a balanced package of measures, which includes within it some of the greatest protections that we’ve ever had in the history of our state for renters.
“We’ll see nationwide Rent Pressure Zones for the first time ever. We’ll see six-year rolling tenancies, providing people with that security of tenure. And for the first time ever, we’ll see an effective no-fault eviction ban.”
But Doherty said “your only defence here is that not every renter is going to be hit on day one” but “if you’re moving on Monday, you’re going to be hit by these rent hikes.”
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He said Ires Reit, in a presentation to investors, made it clear “in black and white” about 25 per cent increases. “Yes, it will take a while for that to flow through,” he said, to Government jeers.
“Corporate landlords are preparing to cash in. And they are not hiding it. They’re telling their shareholders that increased profits are coming because of decisions taken by your Government.”
He said other older big landlords could do the same, adding that “60,000 new tenancies are created every single year”.
The Tánaiste said the 25 per cent Sinn Féin “threw around” was not a fair representation. The representative body for Ires Reit “felt it necessary to go on national radio and describe Mary Lou McDonald’s comments as not correct and a complete mischaracterisation of the issue”.
He acknowledged, however, that “from March it is possible for new tenancies to be set at market rates. But here’s the next bit – it’s only possible to reset once, and then they need to be locked in at that level for the next six years” allowing for inflation increases of a maximum of 2 per cent.
Sinn Féin portrayed these firms as the “big bad wolf,” but at the same time the party met them regularly, he said.
To Sinn Féin jeers, the Tánaiste added: “We’re on the side of renters. You’re on the side of absolute hypocrisy.”
Social Democrats housing spokesman Cian O’Callaghan said the Government got it “completely wrong on SNAs [special needs assistants]” and called on the Tánaiste to admit it had got it wrong about rent changes which are “a gift to corporate landlords”.
He said Ires Reit made a profit last year of almost €50 million and these changes “are going to cause even more hardship for renters and for families, putting them under more pressure”.
The Tánaiste said there was a need for private investment to increase supply but O’Callaghan said Ires Reit announced that “it’s going to buy up an entire apartment block ... with 77 apartments, which was already under construction. They are not building anything new. They are not increasing supply.”
