Mr. Justin O'Brien:

We could spend a long time on the German model but basically what it does is to provide stability, whereas the typical experience in the UK and Ireland is broad instability in housing. One can be sure when one signs up to rent a property in Germany that the rent will rise very moderately over the duration one wishes to remain in the property. As Deputy Catherine Murphy said, one can rent a house for as long as one wishes to live in it rather than rent a property. The Germans have managed over a long period to make renting at least equally preferable with purchasing. They have specialised funding through Bausparkassen, and various other such methods. Local authorities determine rents. One must leave the house or the apartment in the condition one got it in. That is important. They also involve both individuals and utilities – pension funds – in the provision of private rented accommodation because one allows them a reasonable return on property, which as I said is in the range of 6% to 8%, which is way above what one would get on German gilts at the moment. If one considers that the State is getting about 3% on its bonds, 5% would not be inappropriate for a return on private rent or a mortgage to the voluntary housing associations. I will not say any more. It is entirely different from the British and Irish version but it does give one what the Germans really like ever since the Weimar Republic - namely, stability in house prices and rents.