The Irish Property Owners Association (IPOA) has raised concerns over the current state of the rental market in Ireland, with the current availability of rental properties well down on pre-pandemic numbers.
The IPOA was commenting following the publication of the Daft.ie Rental Price Report for Q4 2024, which indicates that as of 1 February this year, there were just 2,300 properties listed for rent in Ireland, well below the average of nearly 4,400 homes before the pandemic.
As a result of the shortfall in rental properties, market rents increased during 2024, by 5.7%, with inflation in Dublin converging with the rest of the country, the IPOA said.
‘Excessive regulation’
“There is no doubt that the rental market is in a crisis and current policies are driving landlords out of the sector,” commented Mary Conway, chairperson of the IPOA. “Excessive regulation and financial pressures are making it increasingly unviable to provide rental accommodation, reinforcing the IPOA’s calls for the government to immediately address supply shortages.
“Rental shortages have led to higher rents for new tenants, fewer available homes, and greater uncertainty in the market.”
Rent Pressure Zones
Much of the market instability can be attributed to current rent policies, particularly Rent Pressure Zones (RPZs), the IPOA added, with the latter initiative, which is intended to limit rent increases in certain areas, disproportionately affecting landlords with long-term tenants, as well as driving up rents for new market entrants.
According to the IPOA, this creates a ‘two-tier system’, which discourages investment in the rental sector, and in turn, exacerbates the supply shortage.
“The IPOA urges the Government to reconsider policies that encourage landlords to remain in the sector and boost supply, while reviewing the current measures that have created an imbalanced and unsustainable rental market,” Conway added.
The IPOA is a non-profit organisation that seeks to protect and promote the interests of private residential property owners in Ireland. Read more here.
