Ms Margaret McCormick:

The supply of homes is the responsibility of the State, not the private rental sector. The sector is part of the solution but it is not the cause of homelessness. Investors invest in the sector and its role is to provide homes. However, the sector is not the reason we have a homeless problem. It is the responsibility of the State to ensure adequate homes for its people.

We seem to be in the position where the private rental sector is now seen as the solution for everything. As a result of the large amount of legislation and the different tax treatments, it is almost impossible for a landlord to navigate the sector, between housing standards, the Residential Tenancies Act and all the legislation that has been introduced to deal with the sector. So much is involved that instead of encouraging people to enter the private rental sector, we are discouraging them from doing so.

The nature of the market is that only 10,000 accommodation units are provided by real estate investment trusts and similar companies. Some 92% of landlords have fewer than three properties. We have legislated out of all proportion for normal investors, given that 70% of landlords own one property. We are back to the position where every time some problem arises in the sector, it is brought back to the landlord being responsible, but that is not the case. I will accept that, like in every walk of life, there are bad landlords and tenants, but that is not reflected in legislation.

The rental sector must be made far simpler but many aspects of this Bill make it far more complicated. Issues will arise that will make it far more difficult. Consideration is being given to the issue of extended tenancy. Previously, a tenancy had a start and a finish under the legislation. Now, a tenancy is be extended. I do not know how anyone managing a property can get around this and understand it. In addition, landlords are to be sanctioned if they do something wrong. Market rent is no longer market rent because we have rent pressure zones. The legal definition no longer applies to market rent. Every time the legislation is changed there are unintended consequences. The number of tenancies registered with the Residential Tenancies Board has declined by 7,000 and we know we have far fewer landlords available now.

We knew when bedsits were being removed that it would create a problem and we saw landlords exiting the market. We can see landlords exiting the market now. We now have an exit strategy, especially for older landlords. They are the very people who bought properties and rented them out as a form of pension arrangement. They cannot navigate the sector and their rents are substantially below market rates. We have to stop and try to be fair to the sector. We need to be fair to both tenants and landlords.