The Institute of Professional Auctioneers & Valuers (IPAV) has published a series of measures in a document titled ‘Rental Market Solutions – Steps to a Functioning Rental Market’ aimed at retaining landlords in the rental market and addressing the diminishing supply of properties in Ireland. Among the initiatives proposed is a yearly tax-free credit of €6,000 for landlords who charge below-market rent due to Rent Pressure Zone (RPZ) rules. These regulations can lead to a reduction in capital value of properties by up to 50% or more.
To qualify for the incentive, which would cost the Exchequer €3,000 in real terms, landlords would have to commit to retaining the property in the rental system for an additional three years. This cost is substantially lower than re-housing expenses. IPAV also suggests amending RPZ rules to enable landlords to charge market rent when tenants voluntarily leave, thus encouraging property re-renting instead of selling.
IPAV’s Chief Executive Pat Davitt said that the measures are designed to “mitigate the worst aspects of the RPZ controls,” which have caused a lack of maintenance and diminishing supply of properties in Ireland.
Other proposals in IPAV’s document include:
According to the Residential Tenancies Board, over 43,000 homes have left the rental market in the past five years. IPAV’s proposals aim to address this issue and improve the overall rental market in Ireland.