Security of tenure remains the largest concern for tenants as nearly half of renters feel insecure in their accommodation, according to the latest report from the national housing charity Threshold.
The charity’s annual We Are Generation Rent Survey, which gives a voice to the experiences of Threshold users, was launched on June 21, by Minister for Housing, Planning and Local Government, Darragh O’Brien.
The survey, which was conducted in 2022, provides further concerning insight from renters, painting a picture of an unaffordable and insecure private rental market. Of 119 respondents to the survey, 59% are renting as they are unable to afford their own home, while 12% are renting as they are unable to access social housing. Just 17% of people are renting by choice.
Feelings of insecurity in tenure were recorded at their highest level in the annual survey, with nearly half (48% ) of respondents stating that they feel insecure in their accommodation. This is a steady year-on-year increase compared to findings in 2022, where 44% of participants felt insecure. A significant drop in those who felt secure in their accommodation was noted in this year’s survey, with just 18% reporting security compared to 38% last year.
The cost of renting was found to be a considerable concern among respondents. Using a 30% income to rent affordability measure, just 27% of respondents were found to have affordable rent. Half of renters were found to be paying more than 30% of their income on rent. Almost one fifth of those surveyed were found to be spending over half of their income on their rent.
The majority of those surveyed do not wish to be in the private rental sector, with 61% aspiring to own their own home in the next five years. However, just 39% expect this to become reality. Only 9% of those surveyed wish to remain in the private rental sector in the next five years, but despite it not being the preferred tenure of most, nearly a third of renters (31% ) expect that they will still be renting in five years’ time. This expectation is a reality for many, as half of respondents have been living in the private rental sector for more than ten years.
“The strong deterioration in feelings of security among renters over the last number of years is unsurprising as we are continuing to see an exodus of small landlords from the private rental sector, leaving high volatility in the market.
“We welcome the Government’s recent initiatives to maintain renters in their homes via the Tenant -in-Situ scheme and the increased delivery of social, affordable and cost-rental housing. However the issue at large remains the sale of properties by small landlords. It is imperative that those wishing to sell see a benefit in selling to Local Authorities and Approved Housing Bodies and that any incentives provided to retain small landlords in the market improve security for renters.
“This year we examined the level of affordability in the current market using a 30% income to rent measure. The findings fuelled a stark narrative for renters across Ireland, as over half of respondents are paying more than 30% of their income on their rent. This is across all family types, income ranges and ages, however those reliant on social welfare, pension payments and those in part-time employment felt this challenge of affordability more acutely. This crisis in the rental sector is leaving no area of society untouched,” Threshold Chief Executive Officer, John-Mark McCafferty commented on the survey, stated.
Key Policy Recommendations
To address the key issues which are making the private rental sector an undesirable place to live, Threshold has set out a number of key policy recommendations. These include strict enforcement of rent regulations to improve affordability, the development of an NCT-style system of certification to safeguard against sub-standard housing, and the introduction of a right to housing in the Constitution - a critical policy measure that Threshold has advocated for previously.
Threshold has also recommended the introduction of a sliding tax scale system on rental income generated from properties subject to long-term lease agreements for ten years or more, which will guarantee greater security of tenure and incentivise the retention of small landlords in the market.
