Wide-ranging improvements in tenants’ rights as well as a raft of measures to assist landlords are strongly recommended in a report for Government.
The Future of the Private Rented Sector is the second of two reports commissioned earlier this year by former minister for housing Jan O'Sullivan.
Published this morning by the Private Residential Tenancies Board, they were conducted by DKM Economic Consultants with input from the Economic and Social Research Institute.
The authors were given the task of “exploring the policy options required to ensure a sustainable private rented sector into the future and one which can play a vital role in accommodating a wide range of households in affordable and good quality accommodation”.
While one in five households is now accommodated in the sector, compared with one in 10 in 2006, major issues arise for it.
A survey for the report, conducted by Red C, found a significant proportion of both landlords and tenants found that the sector was unattractive at present.
An estimated 36 per cent of landlords are classified as “accidental” landlords. Some 65 per cent of them own just one property and more than 70 per cent of landlords have an outstanding debt on their property.
Almost one-third (29 per cent) intend to sell “as soon as they can”, with this figure rising to 36 per cent for more recent landlords.
Among the reasons they wish to exit the market, says the report, are that the tax burden (USC and LPT) has increased considerably in recent years, while the ability to write off costs against tax has diminished.
Among tenants, inability to afford to buy a home was the reason 68 per cent gave for renting, indicating many rent while waiting to buy.
Rental sector ‘needs stability’, Residential property: page 1
