Dear Editor,
A combination of overly-restrictive regulations, significant taxation, and an undeserved negative attitude towards landlords in Ireland, have indeed begun to prove detrimental, as was foreseen by those analysing the details and solid evidence of the rental market.
In their recent report, Hooke & MacDonald aptly labelled the 2% rent cap introduced in November 2021 as a “self-inflicted catastrophe” (as stated in the article “Unworkable rent cap endangers homes supply” on the 26th of June).
However, it is unfortunate that political perspectives often cloud consideration of evident truths in economics. Even academics can be obstinate and disregard clear facts due to their ideological beliefs. They are more likely to dismiss the thought that restrictive regulations would deflect investment from the rental market as mere conjecture or personal view. When stringent rent and eviction controls were enhanced in Ireland, the majority of economists and industry members saw it clear as day that such regulations would deter investment in the sector. However, academics in the areas of left-wing social policy and housing denied even the potential risk of this reality.
Recent statistics openly display the detrimental impact, as the number of rental properties declines each year, whilst landlords and private investors steadily withdraw. The past couple of years have seen a drastic downturn in investment in the private rental sector, to the point where Hooke & MacDonald’s study reveals a stark decrease in the number of new units supplied in Dublin by the private rental sector, from 4,670 in 2021 to a mere 314 in 2023, and this downward trend persists into this year.
Investment is severely hindered by excessive regulation and taxation. Yours sincerely,
Mark Mohan,
Castleknock,
Dublin 15.