04/08/2019 | News release | Distributed by Public on 04/08/2019 05:30
8 April, 2019 - by Eoin Ó Broin TD
Sinn Féin housing spokesperson Eoin Ó Broin TD has said that the findings of the latest Savills report into the residential property market are 'deeply worrying'.
Deputy Ó Broin said:
'The most concerning aspect of the Savills report is the projection that rents will continue to rise by 17% over the next three years. Given that rents rose by 7% state wide and 8% in Dublin last year, this is really worrying.
'Large numbers of renters simply can not afford the already exorbitant rents, pushing many into financial hardship and in the most extreme cases into homelessness.
'The Savills report also confirmed the trend of increasing levels of institutional investment in the private rental sector. There is now a very significant volume of investment entering the rental market and buying up blocks of apartments.
'Institutional investment is not automatically a bad thing if it is long term, low yield and supported by strong security of tenure and rent affordability measures for tenants. However much of the investment entering the Irish market is short term vulture funds. Combined with our weak tenant and rent protections this increases the uncertainty for tenants.
'Without adequate regulation, ever greater volumes of short term investment in the private rental sector will push prices up and leave tenants in an ever more vulnerable situation.
'There are very dramatic changes taking place within the rental market. At one end thousands of accidental landlords are leaving the market, with more than 5000 such properties having been lost to the market in 2018. At the other end we have billions of euros being invested by investment funds.
'The Government urgently needs to assess the impact of these changes, both for supply and for affordability and ensure that regulation reform keeps pace with market changes to protect tenants.'