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THE PRIVATE RENTED SECTOR IN IRELAND
AIDEEN HAYDEN & BOB JORDAN, THRESHOLD
‘Generation Rent’ Conference 16th June 2015
National housing charity - Est. 1978
We solve people’s housing problems by
providing housing advice and advocacy
We campaign for a better housing system using
a rights-based approach
20,000 housing queries annually
Threshold statistics
since 2004
Tenancy Protection Service (TPS)
Protect tenants at risk in Dublin/Cork City, especially
due to rent increases
ITSP protocol with Dept of Social Protection
Dublin TPS has supported 2,147 households at risk &
prevented 664 from homelessness since June 2014
Cork TPS supported 318 households at risk since
January 2015
Tenure in Ireland
Source: CSO, Census of Population (various years)
0
10
20
30
40
50
60
70
80
90
1961 1971 1981 1991 2002 2006 2011
Percentage Distribution of Housing Stock By Tenure, 1961 - 2011
Owner Occupation 69.7%
Private Rented 18.5%
Social Rented 8.7%
Growth in private rented sector
The fallout from the property crash has led to strong demand for private rented
accommodation. After a long period of decline, the size of sector is back to 1950s levels.
More family homes are rented
The number of people relying on the private rented sector to meet their housing need has
risen sharply since the onset of the recession in 2008. The sector now provides housing for
almost one in five families in Republic of Ireland.
Composition of Generation Rent
323,576 tenancies (696,315) people) were renting from a
private landlord (PRTB, 2015)
Urban-based - Galway 38%, Cork 27%, Dublin 25%
Predominantly under-35 bracket but over 35s are rising
Mostly singles but rise in families - 35% with pre-school
children
34% households state-supported on rent supplement & RAS
Almost a third (29%) of tenants are non-Irish nationals
Generation Rent
Not able to buy
Competition for dwindling supply
Living in insecure tenancies
Landlords in financial trouble
Can’t afford rising rents
More families at risk of homelessness
Living in substandard accommodation
Little chance of social housing allocation
Issues for Generation Rent (i)
Inability to afford house main reason for renting (68%)
Renting not affordable for single person on average income in
Dublin and affordability is an issue for households earning below
average income
45% would rent long-term if possibility of rent stability
55% unhappy with security of their rental situation
52 % dissatisfied with condition of their property
(DKM Reports, 2014)
Issues for Generation Rent (ii)
61% want long lease to give increased security (SCSI, 2012)
69% of adults believe expectation of owning home is
unrealistic (Aviva home insurance survey, 2015)
74% of 18-24 year olds believe that Ireland will become a
nation of renters (Aviva home insurance survey, 2015)
Merging of social & private renting with 75,000 (almost
70%) units in Social Housing Strategy to be sourced in
‘enhanced private rental sector’
Making the PRS fit-for-purpose
Security of tenure
Rent certainty
Rent supplement reform
Enforcement of standards
Addressing BTL mortgage arrears
Security of tenure
Most tenants renting current
property for < 2 years
Security of tenure for PRS
tenants is 4 years
Number of years in school
education is 12-13 years
Local authority long-term leases are for 10-20
years
Security of social housing tenants is
indefinite
Rent reviews
permitted
annually &
mechanisms to
recover
property
Rent Certainty (i)
Why? Protect landlords and tenants from rapid increases
or decreases in market rent. Homelessness risk for tenants
& uncertainty around rental income for landlords.
How? Rent certainty measures can be introduced by
amendments to Residential Tenancies Act 2004
Initial rents | Allow landlords to set initial rents at market
level for comparable properties in similar locations
Index of reference rents |Create an index of ‘reference
rents’, drawn from existing PRTB register
Rent Certainty (ii)
High demand areas | Minister for DECLG power to make
regulations for setting of initial rents in high demand areas
areas and low levels of supply
Improvements | Allowing for increases in rent where
improvements are carried out by a landlord
Disputes | Expanding PRTB remit to determine disputes
arising from the application of rent certainty measures
Full details of Threshold’s proposal: www.threshold.ie
Limits not ‘open market rent’ and ‘topping up’ is rife
Paid in arrears, not when rent ‘falls due’
Leases insisted upon although not required
Payments stopped when dispute arises
Turning a blind eye to standards
Loss of confidence by landlords
Rent supplement needs reform
Standards inspections
Accommodation Standards
Parallel enforcement processes, not integrated
Complaint from tenant to PRTB
Local authority responsible for inspections
Inspections ‘hit and miss’ at best
Certification or ‘NCT for housing’ – burden of proof
on provider that property is fit to live in
Buy to let mortgage arrears
Code of conduct on BTL mortgage arrears
Data on receiverships & tenants affected
Regulation of receivers within RTA
Conclusions
PRS not mainstream housing tenure in policy terms
Current model not adhering to housing policy goals
of affordability, inclusion and sustainability
Need integrated strategy, ‘missing part of housing
jigsaw’
Such a strategy has huge potential to bring
transformational change for individuals, economy &
society