Huge increase in the number of landlords exiting the market

The rate of landlords exiting the market has reached an unprecedented rate, with the number doubling in the past 12 months.

New figures from the Residential Tenancies Board (RTB) show that 1,011 landlords filed eviction notices between April and June, more than double the number at this time last year.

The number pales in comparison to the 498 landlords who issued notices of termination with intent to terminate in the same period last year, which was higher than before the pandemic.

However, the numbers have been growing steadily and have been recorded at 614 for the last three months of 2021.

There has been a 45 percent increase in landlords choosing to sell between the first two quarters of this year, as can be seen.

Chance landlords and pension pot landlords are believed to play a significant role in this exodus.

The RTB figures were shared with Sinn Féin spokesman Eoin Ó Broin, who said the best way to deal with a shrinking rental market is to build more social housing. He urged Housing Secretary Darragh O’Brien to act.

“There are a large number of people in the rental market who never wanted to be landlords, they are coincidences,” Mr Ó Broin said.

“They either bought a property to live in earlier in their life and as their family grew they wanted to move to a larger property and got stuck in negative equity.

“These people will sell no matter what you do with taxes.

“There are also so-called pension pot landlords. These are people who bought a second home during the Celtic Tiger, mostly tax-deferred – not because of the rent payments, but because they wanted to secure their pension.

“A lot of these landlords are approaching retirement age and because property prices are so high, they’re selling,” he added. It comes as Ireland recorded its highest number of homeless people last week.

More than 10,500 people were in emergency shelters in July, according to figures released by the housing office.

The crisis was never described as “bleak or urgent” by the Dublin Simon Community.

Almost 700 landlords

698 landlords told RTB they were evicting tenants so they could resell their properties in January, February and March, and that number rose to 1,011 in the second quarter of the year.

And 60 percent of all evictions are due to landlord sales, figures show.

Between April and June, 1,666 tenants were served with eviction notices, up from 1,132 in the first three months of the year.

The second most common reason for evictions was the withdrawal of the landlord or his family, with 300 people reporting this.

140 eviction notices were served for breach of tenant obligations, 75 stated that the property was no longer suitable for accommodating the tenants.

However, the number of landlords leaving the market could be even higher as thousands of tenants have left cities during the pandemic and these homes could be sold without RTB being notified.

The stark numbers come as property prices have hit Celtic Tiger levels, with CSO data showing they rose 14.1 per cent in June, with a rise of 11.8 per cent in Dublin.

The Central Bureau of Statistics said ownership is now at its highest level since the April 2007 boom.

Real estate experts have also warned that long-term rent controls could encourage landlords to sell, adding further pressure to the rental market.

Rent controls, such as long-term rent freezes, can reduce the supply of housing and drive up prices, a senior member of the newly formed housing commission warned earlier.

The government is considering lowering the high taxes landlords pay on rental income as part of the upcoming budget.

https://www.independent.ie/business/personal-finance/property-mortgages/huge-increase-in-number-of-landlords-who-are-exiting-the-market-41958015.html Huge increase in the number of landlords exiting the market

Fry Electronics Team

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