Study finds rental market is in a state of crisis
A new study has found that the rental market is in a state of crisis with many private landlords leaving the rental market which is adding to the pressure.
Economist Jim Power who produced the study says the current housing policy needs to be adjusted in order to address market failures in the Rental Sector.
The study also found that rent-pressure zones are creating a two tier rental market.and preventing rents from falling.
The research revealed 94% private landlords say over-regulation is making them consider leaving the market.
Speaking to RedFM News Kevin Barry of Barry Auctioneers on South Mall says the exodus of private landlords from the rental market is being replicated here in Cork.
“34% of the properties that we’ve put on the market in the last 6 months are landlords that are actually getting out of the market.
“You would have had accidental landlords that bought in 2006/7, they were living there themselves, they might have gotten married and they’ve a second home, they weren’t in a position to sell for the last 5 or 6 years because they were in negative equity – they’re now slowly getting out of negative equity.
“All these people would have had mortgages, by the time they take in the rent and pay the tax they weren’t making money, now they’re getting out and that’s going to be a big problem going forward.”