The Irish Property Owners Association (IPOA) has welcomed the Taoiseach’s signalling that the rent pressure zone system could be changed or removed by the end of this year.
Yesterday, Micheál Martin said the Government will examine rent pressure zones.
“The rent pressure zones expire at the end of the year so we have time in between to say: can we develop an alternative system which protects renters but also enables people to have a clear stable environment in which to invest,” Mr Martin said.
IPOA chairperson Mary Conway said that she was “delighted to see that the Taoiseach recognised that Rent Pressure Zones haven’t worked”.
Speaking on RTÉ’s Morning Ireland, Ms Conway referenced a Housing Commission report published in July which showed that 42% of landlords left the market in the 26 months leading to December 2023.
“The main reason that landlords are leaving is because of the rent pressure zones and also indefinite tenancies.
“There’s been a one-size-fits-all, slapped on all landlords up and down the country and we know it’s just not working,” she said.
“We’re very willing to engage and to see what’s the best outcome for tenants and landlords.
“Rent pressure zones were supposed to protect tenants, but in fact it’s driven landlords out of the system and it’s given tenants less choice,” Ms Conway said.
Threshold CEO John-Mark McCafferty said that the charity is “very much alive” to the issues facing landlords.
Speaking on the same programme, he said that it is “really important” to find a middle ground.
“We’re very mindful that over the last 12 years that rents have increased without pause and the rent pressure zones, what they’ve done, is they’ve tried to protect the excesses of rental hikes but rents have still increased,” he said.
“The return of 2% is still a very favourable return compared to a lot of financial products, so we have to balance the need to protect renters with the other considerations around the market,” Mr McCafferty added.
