A new report by economist Jim Power concludes that the changing and challenging regulatory and taxation environment is largely responsible for private non-institutional landlords leaving the rental market. This while rents are going up and the supply is coming down…
High taxation, rising rentals, and high maintenance costs are some of the reasons investors are exiting the market.
The study also found that Rent Pressure Zones, which limit the extent to which rental prices can be increased in an area, have created a two-tier rental market.
The Institute of Professional Auctioneers and Valuers and the Irish Property Owners Association commissioned the research.
The report concluded the rental market is in a state of crisis, exacerbated by the exit of non-institutional landlords in significant numbers, reducing supply and putting upward pressure on rents.
There has to be a move away from policies that discriminate against private landlords and which give them little incentive to participate in the rental market. “If private landlords continue to exit the market, the situation is going to get worse,” it warns.