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.
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