Mr. Tom O'Brien:

I thank the Deputy and I note his opening comments on the acceptance by the wider constituency of members of this forum, and that they have no issue with and accept the terms of the Bill. There might be disappointment that the Deputy is the only member who has taken the time to attend and listen to our views. The Deputy first dealt with rent control measures, which are at the heart of this. We are disappointed but not surprised by the provisions in the proposed Bill. The wording of the legislation is extremely one-sided. Everything seems to be captured with respect to sanctions and fines for landlords who breach the legislation but there is not much about tenants who default or do not pay rent. There is nothing in there to support or in any way acknowledge landlords who may have tenants in place since 2012 or 2013 sitting on rents that may be 40% or 50% below current market values. There is nothing to balance or address that matter. If one breaches the tax code and, for example, does not file a tax return, there is a sanction of €3,000. If a landlord overcharges rent by €50, the sanction could be up to €30,000. The proportionality of sanctions relative to the crime is completely out of sync with any other walk of life or business.

At the heart of this and all other legislation introduced since the downturn directed at the buy-to-let or property sector have been intervention and measures impacting on property owners. These include tax and general procedural matters but they have all come with a cost and burden to the property owner and, in most cases, with little opportunity to pass them on to a client, which is at odds with practice in many other businesses.

The legislation comes on the back of what is an unprecedented supply issue. There has been much focus on rent and on sanctions for, and control of, landlords because of the supply issue. The population is increasing and the economy is recovering but housing supply is decreasing. Independent evidence indicates that for every three properties sold in the buy-to-let sector, only one remains in the sector. Supply is going down but demand is going up. Regardless of this or any other Bill that is introduced, that will not change. There must be intervention and support aimed at people willing to invest in the property sector.

Investment in the property sector is not a quick process and one does not get in and out in a couple of years. There are substantial entry costs and one assumes substantial debt obligations. The returns are relatively low, taking into account that 53% of income goes on tax and there are mortgage repayments. On what basis do members feel landlords should take on an investment with a return of less than 5% before tax in circumstances where they not only have financial obligations but there is a legal framework that is difficult to follow unless they are practising solicitors or barristers. It is complicated and I wonder how or what the average investor with one or two properties - 92% of people are in that bracket - will make of this legislation in terms of compliance. One could quite unwittingly contravene the legislation, finding oneself in a serious position, facing criminal and financial sanctions that could lead to bankruptcy. I am interested in understanding the basis on which members feel the legislation will in any way address the supply problem. If they were considering investment in property, would they feel that stacks up on a financial basis? Would they be comfortable with the legal obligations that must be taken on? This is not big business and, in many cases, it amounts to a small personal pension plan. There are approximately 300,000 tenancies with only 6,000 are in dispute. It is not a business in which there is rampant disregard for the law. There are not so many disputes that we need a legal framework that is so complicated and that is unprecedented anywhere else in the world. It does not necessarily relate to this sector but Airbnb has stated that the regulations governing the short-term letting of property in Ireland are unprecedented not only in Europe but in the world. They are among the most serious and stringent rules that the company has come up against.