A broadening and deepening of the rental sector is planned by the Government in its Housing Action Plan, to be published next week.
The roll-out of “affordable rental” housing and the introduction of build-to-rent developments will be key to meeting the housing needs of thousands of households, the plan says.
"One in five households in Ireland now privately rent. It is a growing sector, particularly in urban areas. Our current stock of housing, however, was not built with the needs of long-term renters in mind."
Real Estate Investment Trusts
The Government wants to move the sector away from being dominated by so-called “accidental” landlords owning just one or two properties and seeking immediate returns, to one of large-scale professional investors, such as Real Estate Investment Trusts and pension funds, seeking long-term, steady returns.
The plan recognises there is a large section of the population who cannot afford high rents on the open market, but who earn too much to qualify for social housing. The development of an “affordable rental”, or cost rental, sector has been a long-standing recommendation of the National Economic and Social Council
Minister for Housing Simon Coveney plans to incentivise the private sector to work with local authorities to develop "affordable rental" units as part of "mixed tenure" estates on publicly owned land.
“We are...introducing an affordable rental programme to enhance the capacity of the rental sector” to provide “long-term, affordable residential accommodation for low to moderate income key-worker households in urban areas of high demand.”
A second strand to rental strategy is the development of the build-to-rent sector.
“A growing trend in other countries is the idea of build-to-rent...larger scale with on-site amenities, and targeted to institutional owners rather than buy-to-let landlords,” says the plan.
“These are homes built specifically for the rental market (also referred to as multi-family units in the USA)... Build-to-Rent developments are designed with the occupant in mind. This might be equal-sized [units] clustered around central shared space, the inclusion of amenities such as gyms and crèches and shared entertainment facilities.”
White paper
A white paper on the private rented sector will be published in the autumn, the plan adds.
“It will be a strategy for the entire sector: tenants AND landlords,” it stresses.
“The strategy and the recommendations will be structured around four key areas: security, standards, supply and services.”
The plan indicates tax incentives will be introduced for landlords - who have long campaigned for the right to offset their costs, such as repairs and property tax, against tax.
It also says there will be tax incentives for developers to encourage them to invest in the rental sector. No details are given on these in the draft, from the end of last month.
It also indicates the Tenancy Sustainment Service, which is operated by Threshold in conjunction with the Department of Social Protection and local authorities, will be extended across the State.
It negotiates on behalf of tenants, with landlords considering terminating leases, to keep people in their homes.
It currently operates in eight locations including Dublin, Cork and Galway.
