19 May 2025
Rents – Outcome Of Government’s New Housing Plan Is Critical– Emergency Measures Needed To Boost Supply – IPAV
Responding to the Daft.ie Rental Price Report for Q1 2025 showing rents continuing to rise, and at very high levels, particularly in Limerick and other cities outside of Dublin, IPAV, the Institute of Professional Auctioneers & Valuers, said there is only one message to be taken from the figures – a critical lack of supply which must be tackled as an emergency issue.
Pat Davitt, IPAV’s Chief Executive said: “A lot of the debate around these extraordinary figures is likely to focus on ongoing measures to curtail rents.
“We have done that, having one of the most severe rent control systems in the world, and it hasn’t worked, it has constrained supply in a major way,” he said.
“IPAV has maintained that for a number of years at this stage, and now much later, academic studies are reaching similar conclusions,” he said.
“There is only one answer, and that is ramping up supply. This will not happen without cutting through the major impediments in planning and infrastructure, and lending to SME builders and developers in particular,” he said.
Mr Davitt said last week’s RTB data testified to the continuing exodus of private landlords from the market, despite much recent speculation to the contrary.
And he said the ongoing review of the RPZ legislation is critical. “The Government has to be careful to ensure the outcome of that review does not lead to exacerbating the current situation,” he said.
While a cliff edge finish to the legislation would leave many exposed to substantial rent increases, several factors need to be considered immediately by Government to ease the transition.
Market rent should be capable of being charged when a tenant leaves a property of their own volition, he said pointing out that the OECD said in February that the Government should allow rents to be “freely adjusted” when tenancies end so that costs to maintain the property can be kept in line with inflation.
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