Thursday, 23 October 2014

Rent Control would make things worse for tenants says PRTB report

The introduction of Rent Control would make the problems in the private-rented sector worse, a major study on the issue published  by the PRTB yesterday.

The 170 page report prepared for The Housing Agency on behalf of the Private Residential Tenancies Board says Rent Control would not address the underlying problems in the sector, would not generate better outcomes for tenants, and could lead to between 52,000 and 89,000 rented properties exiting the system.

The report warns that while rent regulations may have an initial benefit to tenants, the longer-term impact would see landlords leave the market, reducing supply and ensuring an upward pressure on rents. “Given where the Irish housing market is at present, the introduction of rent regulations in Ireland is likely to exacerbate the current problems being experienced in the market,” the report says. “A whole series of negative impacts are likely, including a reduction in new supply of rented property as well as an exodus of existing landlords from the sector.

New foreign investment, which is currently being encouraged to address the supply shortage, is likely to be discouraged. A supply-constrained market can also result in landlords being selective about their choice of tenant, thus generating black market activity. This issue may already be a feature of the market. Moreover, the introduction of rent regulations would see the impact falling disproportionately hard on the very people that the rent regulations are trying to assist.”  Sources - Irish Examiner - Irish Times - PRTB

Go to this page at the PRTB website to download the PDF report

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