Oireachtas Joint and Select Committees

Tuesday, 24 May 2016

Committee on Housing and Homelessness

Irish Property Owners Association

10:30 am

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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I thank the representatives of Irish Property Owners Association for appearing before the committee and for their submission. As Deputy Eoin Ó Broin stated, we have been here for the past four or five weeks.

We have been tasked with trying to come up with solutions to the housing and homelessness crisis. We must, therefore, put our questions to every group that comes before us because we must make our recommendations to the Dáil by 17 June. As I was travelling to Dublin this morning, I was listening to reports on housing all the way. We are at crisis point.

The IPOA was established in 1993 to represent property owners in the private rental sector. Obviously, landlords must make a profit or they will not stay in the business otherwise. Profit is what drives our economy. There is a perception, which I believe is the reality, that landlords do not want HAP tenants. The issue of HAP arises constantly at this committee's meetings. As we all know, the supply of local authority housing is practically non-existent. It has slowed to a snail's pace and the only hope people have is to get private rented accommodation. Many prospective tenants are on a HAP scheme because they are on a local authority waiting list. When they go to view houses, however, the moment they mention HAP, the landlord does not want to know them. This is an issue that needs to be addressed. Also, it should be mentioned that while other allowances were not paid to landlords, HAP is paid directly to landlords.

The IPOA representatives stated that improvements made to a property cannot be claimed as an expense unless and until the property is sold. Is that a disincentive to landlords in regard to doing up their properties and keeping them in a reasonable state of repair? If there is no provision for them to claim back money spent, there is no incentive to maintain property. We hear constantly about people who are living in sub-standard accommodation, with poor insulation and wiring and so on.

Mr. Faughnan said the cost of unfurnished rental accommodation is up to 25% less than that relating to furnished accommodation. Is that correct? Will he speak further on that because it might make a big difference for people who trying to rent, given that many of them have their own furniture? I welcome the comments regarding bedsits. Many of the organisations I have spoken to feel there is merit in reconsidering bedsits, as there are many single people seeking accommodation.