‘Solutions? Two areas of focus: supply and taxation’

Solutions? Two areas of focus: the supply side and the taxation side. As is now happening in the UK, the Government must attract back the smaller buy-to-let investor.

Our cities will be wellserved by professional investors like REITs and pension funds for decades to come with large built-to-rent type developments comprising hundreds of rental properties in desirable areas. What about the regions? Incentives for the small-time investor should include lower income tax from rental income, extra allowances for capital expenditure and reduced CGT on exit, which currently stands at 33pc.

On the planning side, the level of social housing in Ireland currently stands at 10pc of the total housing stock, with a further 24pc of residential homes privately rented. This figure is higher in cities. In addition to Part V, introduce a requirement that 10pc of the total number of units in new developments must be sold to private investors. Currently, investors cannot compete with the FTB for starter homes. For the FTB, this is to be welcomed, but for those requiring somewhere to rent, it is limiting options.

Some would claim this move would just increase pressure on the FTB. To alleviate this, housing densities could be increased by one unit per acre, for a limited period.

The rental market needs rental properties or else it is just a market. People need to recognise that landlords play a fundamental role in the property food chain and those who find it hard to accept will need to accept them as a necessary evil. Philip Farrell is a market commentator and property consultant