Landlords are leaving the market in their thousands
More than half of 5,615 eviction notices said property is being sold
LANDLORDS are leaving the market in their thousands, blaming excessive taxation, rent control and constantly changing laws.
Figures from the Residential Tenancies Board (RTB) have shown 5,615 eviction notices have been served on tenants between the middle of 2019 and the end of 2021.
Just over half (55%) of these were because the landlord intended to sell. A further 23% said they were going to move a relative into the property.
While the numbers of notices to quit slowed during the lockdowns, it has picked up pace in recent months, with 841 served in the second quarter of last year, 887 in the third and 958 in the fourth.
Margaret McCormick, spokeswoman for the Irish Property Owners’ Association (IPOA), said she believed the true number of landlords leaving the market was even higher. She explained: ‘The RTB figures only reflect the number who have served notice on their tenants. A lot of landlords sold up when their tenants left to move home during the pandemic, leaving the properties empty.’
Rules introduced to protect tenants from eviction during the pandemic only applied if they could prove they were in rent arrears due to Covid, and were only taken up by 475 people as of mid-2021.
Ms McCormick cited research from estate agent Sherry FitzGerald last autumn, which estimated 22,000 small investors had left the Irish property market between 2016 and 2020.
She said landlords and property investors wanted to see stability in the rental market and to have confidence in it. ‘But every time they turn around the legislation has changed again,’ she said. ‘The rules on Rent Pressure Zones in particular keep changing. It is not sustainable for a lot of people to stay in the market.’
She added that the tax burden on private landlords was too high, as it was not treated as a business, from which legitimate expenses could be deducted. Many pay tax rates of 55% on rental income.
Rent increases did not even keep up with inflation, Ms McCormick claimed, and rent control was creating a black market and reducing the amount of accommodation available to renters. Ms McCormick said: ‘There was a time when an older landlord might have passed a rental property on to their relatives, but the younger ones don’t want the hassle. It’s too problematic, too difficult.’
Research conducted by the RTB last year found the main reason given by landlords for selling their rental properties was that they ‘no longer wished to be a landlord’ (55%), followed by it ‘was not profitable’ (28%).
Sinn Féin housing spokesman Eoin Ó Broin said the latest RTB figures were ‘very alarming’.
He added: ‘We are seeing a surge in eviction notices, coupled with a dramatic increase in the number of landlords selling up. This is not a new trend. The number of available properties in the private rental market has been falling since 2017.’
He called for a ban on rent increases for three years for new and existing tenancies, and increased investment in affordable cost rental homes for those earning too much for social housing but not enough to buy.
In a statement, the Department of Housing said it was committed to supporting the continued participation of landlords in the rental market. It said: ‘A changing regulatory environment, which has been necessary to ensure a fair and effective residential rental sector that balances tenants’ rights and landlords’ responsibilities, has resulted in a challenging compliance framework for some.
‘In other cases, the recent rise in house prices has enabled some landlords, including “accidental landlords”, to exit negative equity. As a consequence, they have taken the opportunity to unwind their investments.’ It said the Housing for All plan was intended to tackle pressures in the rental market in the short term, as well as the issue of longer-term supply needs, and that taxation measures and tenancy laws were under review.
‘They don’t want the hassle’