Responding to the latest RTB rent Index for Q4 2021 IPAV, the Institute of Professional Auctioneers & Valuers, welcomed the strong acknowledgement by the RTB that the Index represents only new tenancies registered in Q4 2021, rather than representing the current levels of all rentals, a point the Institute has been striving to highlight for some time.
Pat Davitt, IPAV’s Chief Executive said this is critical from a policy formation perspective.
“Unfortunately there has been a lack of comprehensive data in this area which the RTB is now attempting to address. But policy decisions have been made on the basis of insufficient data, which will likely lead to the State learning lessons long after the horse has bolted.
“In this regard in today’s RTB figures the most striking takeaway is the drop of 48 per cent in the number of new tenancies registered year on year in Q4.
“While the reasons are multi-faceted, including the fact that tenants are staying longer in existing arrangements, we have no doubt but that the continuing exit of the private landlord from the market is a major contributory factor. With the exit of the private landlord we may be losing lower rentals while new properties coming on the market have no restrictions on the rent levels capable of being charged, they can charge what the market will bear,” Mr Davitt stated.
He said IPAV’s research indicates that the rationale for private landlords leaving the market is primarily high taxes, way higher than those applying to commercial landlords, and excessive regulation.
“In relation to the latter it is notable that almost every RTB publication, including today’s, cites and highlights what the organisation is doing to address wrongdoing by irresponsible landlords, an important responsibility of the organisation, it is rarely if ever balanced by statements as to what it intends doing to address the wrongdoing by irresponsible tenants.
“The reality is that while private landlords impacted by the behaviours of irresponsible tenants do, over extensive time, achieve favourable decisions, those decisions, primarily relating to unpaid rents, remain unfulfilled, despite RTB rulings.
“Many good landlords achieve pyrrhic victories at adjudication,” Mr Davitt asserted.
