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