Pat Farrell, CEO of Irish Institutional Property, has spoken out against proposals to implement rent controls and an eviction ban, stating that these moves would devastate the private rental industry. As the head of a group that represents institutionally backed investors within the Irish property market, his words, delivered during the house-building summit held by the Irish Home Builders Association at Croke Park, carry significant weight.
Underscoring the need for policy reform, Farrell stated that while Ireland’s economic fundamentals make it a desirable destination for investment in the rental sector, the country’s inconsistent policy framework acts as a deterrent. He added that investment funds ready to enter the private rental sector are currently being created.
When queried by the debate’s host, Ivan Yates, regarding the potential implications of a Sinn Féin housing minister, Farrell declared it would obliterate the market and prohibit potential tenants from renting. In his words, “They would shut out everybody who wants to rent in the market. The incentive to invest would be stopped.”
Adding to the discussion, Marian Finnegan, Sherry FitzGerald Residential and Advisory’s MD, weighed in by warning that Sinn Féin’s policies would drive young people to leave Ireland. Finnegan voiced concerns about the continued departure of private landlords and the impending crisis arising from young individuals deciding they no longer want to live with their parents, potentially choosing to leave Ireland instead.
Finnegan called for an extensive awareness campaign outlining the potential effects that additional rent controls could have on the market. She criticised politicians promising these measures in order to appeal to the younger electorate, arguing that these policies would in fact force young people to leave the country by deterring investment in the rental market. Finnegan advocated for the removal of rental caps, arguing they are untried and unsuccessful globally, wondering why they would be expected to work in Ireland.
Developer Michael O’Flynn suggested that Taoiseach Simon Harris’s goal of building 50,000 homes annually might need to be increased to approximately 60,000. He acknowledged there is potential in the industry to meet these objectives, but stated it would be impossible without dealing with the current funding deficit. He stated, “The Irish government needs to step in at this point. I’m not denying they are stretched thin. However, the necessity is for a differing type of funding. What is needed is operational capital. Possibly, with the involvement of banking institutions, an underwriting agreement might be required due to the risk associated.”