Private landlords leaving the housing market in their ‘droves’

PRIVATE landlords are leaving the market in their ‘droves’ blaming high taxes, irresponsible tenants and red tape, a new survey has revealed.

The survey of 90 auctioneers around the country by the Institute of Professional Auctioneers and Valuers found that 1,022 landlords have sold up and left the market in the last 12 months.

Speaking about the survey, CEO of the IPAV Pat Davitt said: ‘A positive emerging from private landlords selling is more properties becoming available to first-time buyers. However, it’s not a good situation overall.

‘In a market where we’re desperately short of properties with just 14,446 new dwellings completed in 2017 while demand is estimated to be at about 40,000 per year, the fact that private landlords would see no real gain by continuing in the market is worrying.’

However, the Department of Housing last night said the number of private and commercial landlords registered has been steadily increasing since 2014, and plateaued in 2017. There were over 160,000 landlords in 2014 compared to more than 175,000 in 2016 and 174,000 last year, their figures showed.

The Department also said their figures do not show any dramatic shift in the number of landlords as a result of the introduction of the rent limits in designated rent pressure zones.

Margaret McCormack of the Irish Property Owners’ Association said that rental sector taxation needs an overhaul. At the moment, private landlords are liable for USC, PRSI, PAYE at a marginal rate on the rent they are paid which could account for over 50% of the income. ‘Legislation around the sector is hugely complex. It is difficult to comply with. The taxation is so penal that for a lot of people it just doesn’t make sense,’ said Ms McCormack.

Earlier this month, Minister for Housing Eoghan Murphy said any tax breaks for landlords will have to go through Finance Minister Paschal Donohoe.