26 Sept 2022

Rent hike figures show where Government's total housing focus must be say auctioneers

The unfinished Conniberry Estate, the only council estate under construction in Portlaoise.

The Conniberry council estate when it was under construction in Portlaoise.

The latest rent rise figures demonstrate a severe and diminishing lack of rental properties and show the risks of rent controls, according to auctioneers.

Responding to the latest Rental Price Report for Q3 2021 IPAV, the Institute of Professional Auctioneers & Valuers, said the latest report with the larger increases outside of Dublin is likely to reflect the fact that many such properties are outside of Rent Pressure Zones and would be allowed to increase rents once every two years.

Pat Davitt is IPAV Chief Executive.

“We’ve had some expert opinion warning of the risks associated with rent controls. We believe further rent controls are not the answer but increasing the supply of homes for rental and for purchase.  This is critical from a social and economic perspective,” he said.

Mr Davitt said his organisation agrees with Professor Ronan Lyons that construction costs must be reduced.

“This is something we’ve been seeking for several years at this stage. The issue of building homes at affordable prices remains to be tackled and the Government’s housing plan must deliver on this. Playing around the edges of the demand side in controlling rents is not the answer. There should be a total focus on delivering more homes.”

Mr Davitt said this includes tackling the major impediments in the planning process as well as the entire tax treatment of housing.

The IPAV added that the Rental Report for Q3 2021 highlights yet again that it is only in the two most expensive areas in which to buy property, Dublin 4 and Dublin 6, that repaying a mortgage on a three-bedroom home is more expensive than paying rent, and at that it is only marginally so.

In every other area of the country it is cheaper to service a mortgage that pay rent, substantially so in many areas.

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