Ms Margaret McCormick:

I thank the Chairman and members of the Oireachtas Joint Committee on Housing, Planning and Local Government for the opportunity to speak with them today.

The Irish Property Owners Association, IPOA, was established in 1993 to represent property owners in the private rental sector. The IPOA encourages and educates its members on what constitutes good quality accommodation and on professional standards of management. The association is a not-for-profit organisation and membership is not compulsory. Property owners who join the association are, by definition, responsible and use the association for education and advice to help them comply with the complex legislation governing the sector.

The State has failed in its role to provide sufficient social housing for people who need accommodation. The private rental sector has provided homes for people where the State has failed and is a vital part of the housing market. Two thirds of tenancies in the Irish rental market are provided by property owners with fewer than three properties. A total of 70% of landlords have one property and rely on it for their pensions. The composition of the Irish market should be taken into account when drafting legislation.

Investing is a choice and the changes proposed in the anti-eviction Bill and the greater security and rent certainty Bill will further damage investment in the private rental sector and result in less accommodation being available. Supply is the issue that needs to be addressed, and with this in mind the State needs to incentivise investment in rental property rather than penalise it. A move to selling with the tenant in situwill limit the selling market to investors, which together with the rent pressure zone restrictions will substantially devalue a property. Investment value is based on yield, which will be driven by the restricted rent level in place on the property. Investors are less likely to purchase properties with restricted income. It makes more sense to purchase a property that has never been let where market rent can be charged. Presentation of a property also affects the price and an occupied property may not present well. The threat of withdrawing selling as a ground for termination has already resulted in some investors leaving the market.

Indefinite tenancies are not workable. A two-month probationary period is insufficient time to assess a tenancy and six months is more reasonable. The existing six-year tenancy cycle allows for a no-fault method to get a property back and it is essential that this remains in legislation. Six years is a long time and more than fair. The private rental market houses people from all walks of life and often it is impossible to prove anti-social behaviour as a result of intimidation or breach of obligation. A no-fault termination process is, therefore, essential. Property owners with good tenants want to keep them and are happy to renew after six years. Long leases can also be entered into but the continual interference in the market makes this option unattractive.

Substantial refurbishment is essential as a ground for termination. After a number of years of a tenancy, substantial refurbishment is required to modernise and ensure the property is up to date and suitable for the changing accommodation needs of the market. Substantial refurbishment is required to satisfy the needs of the market. State housing policy should not lead to the running down of accommodation. In a substantial refurbishment the removal of floorboards and the dust created from sawing, rewiring and removing walls create an unsafe environment. It is essential as a health and safety issue, and often as an insurance issue, that properties are vacant during the works.

Restricting the deposit to one month’s rent is inadequate. There may be substantial damage to a property in excess of the deposit and the rent may not be paid. The proposal is entirely inconsistent with the Residential Tenancies Act, which requires a minimum of six weeks to terminate for rent arrears and a minimum of four months to get a determination order. There is no recourse for property owners where the occupier has no income. A property owner must be free to decide how much deposit is required.

Rent pressure zones that cover the whole country would be entirely inappropriate. No properties would be built in rental areas with low rent as the return would not justify investment. It would drive landlords out of those areas, resulting in a severe shortage of rental property in rural areas.

Including receivers in the definition of landlords is essential. The receiver collects the rent and should comply with the obligations of landlords in their entirety, including upgrading, repairs and refund of deposit. Including student specific accommodation in the definition of landlords is impossible as the terms and conditions of licences are different. They do not have exclusive possession of the property, they are licensed individually and they are responsible only for their own accommodation cost. They may not have collective responsibility for the common parts of the accommodation.

The consumer price index, CPI, would not function in the context of the rental market. The CPI does not reflect the significant costs associated with the provision of private rental accommodation, including taxation and increased labour costs for plumbers, electricians and painters.

Placing the rent payable for a tenancy on the register is a fundamental breach of the data protection rights of the landlord and the tenant, and is in breach of the existing European legislation.

It may be the landlord's sole income, in which case his or her personal information is not protected under GDPR. The information is between the landlord and the tenant and, in the case of new tenancies, the landlord must provide the information to the tenant. The information is featured on registration of the Residential Tenancies Board, RTB, which will be in a position to investigate where it is concerned that there may be a breach of the rent pressure zone regulations. Tenants in situcan request the information from the RTB if they believe they have been given incorrect information.

In conclusion, if passed, the Bills will have a significant detrimental impact on the sector and will lead people with capital to invest their money in an alternative asset class.