New statistics refute the general assumption that private property owners are exiting the Irish rental market, displaying a rise in registered tenancies from 213,177 in mid-2023 to 230,006 midway through this year. The data, supplied by the Residential Tenancies Board (RTB) covers only the last year due to a revamp making previous statistics incomparable. Nonetheless, these data offer valuable insights into the current market scenario.
The spike in registered tenancies adds clarity to an opaque situation. The most recent census revealed more rental properties than previously accounted for, with the discrepancy largely due to family-based, unregistered leasing deals. Furthermore, increased regulation may have catalysed an influx of previously illicit landlords registering with the RTB, which could have influenced the current data. Future trends in this respect would be intriguing to observe.
There are several key factors to consider from a policy perspective. The escalating predominance of larger landlords could help reconcile the seeming contradiction between the trend of smaller landlords exiting the industry and the rise in registered tenancies.
Crucially, larger landlords tend to manage premium, costlier properties. They might also be procuring properties previously owned by smaller landlords. Assessment of these tendencies is crucial for determining future policies such as the institution of rental pressure zones.
Regardless of the statistical evidence, it is undeniable that the rental market continues to experience turmoil due to escalating costs and a lack of affordable rental options. The disparity between supply and demand drives up the cost of fresh tenancies. Government interventions such as plans for cost rental units are a step in the right direction, but developments are slow and are often hampered by the peculiarities of the Irish planning system. Despite substantial RTB data showing the availability of numerous rental properties, the property listings on websites remain extremely low. Therefore, a thorough investigation is essential to gain a comprehensive understanding of the current situation.
The Housing Commission suggested several notable rental policy ideas to consider that include a more assertive scheme of governmental investments into low-cost rental housing, accessible at prices considerably less than market rates. They also put forth changes to the rent pressure zone regulations in a bid to establish a steadier market.
Central to these proposals is the recognition that renting should not just be considered an essential initial step towards property ownership, but also a relevant and suitable long-term option for some. Despite acknowledging this, it seems that Irish political discussions have not fully accepted or actioned this concept.