A group representing landlords have said they “welcome” the Taoiseach’s hint that rent pressure zones might undergo significant reform. 

Yesterday, Micheál Martin said the Government would “examine” a report by the Housing Commission that recommended the current system be replaced with a “reference-pricing mechanism”. 

"Can we develop an alternative system which protects renters but also enables people to have a clear stable environment in which to invest?" he said.

Since 2016, landlords in rent pressure zones have been banned from increasing rents above the rate of inflation or 2% - whichever is lower. 

On Newstalk Breakfast, Mary Conway of the Irish Property Owners’ Association (IPOA) said rent pressure zones were only meant to be temporary. 

“We welcome the Taoiseach’s suggestion yesterday that the rent pressure zones are going to be looked at and possibly abolished,” she said. 

“Landlords got extremely nervous and they’ve left the market in droves; we know that the Housing Commission last July said that 42% of landlords in the 36 months to December 2023. 

“Really, the problem is about supply and demand; there’s very little supply out there and how can the supply be increased?”

A man holding a bunch of keys. Image: Mark Richardson / Alamy Stock Photo

 Ms Conway said the State should do more to encourage people to become landlords. 

“What incentives can be there to bring landlords into the market?” she said. 

“I think a better supply of rents would be more fair to everyone.” 

Despite rent levels surging across the country in recent years, she added that many property owners believe the current system does not offer them enough financial reward. 

“Rent pressure zones and indefinite tenancies have done more to drive landlords out of the market than anything else over the last number of years,” she claimed. 

'A level of trepidation'

Also on the programme, John Mark McCaffery, CEO of housing charity Threshold said there is a “level of trepidation” in the sector about what will happen next. 

“The rent pressure zones were always a short-term measure which came in in 2016,” he said. 

“They kept getting renewed every three-years, so they do come to an end this year. 

“There is a bit of context here; the Housing Commission, which reported last year, did talk about something that might replace the rent pressure zones in the form of what they called a ‘reference rent’ for local dwellings of similar quality. 

“It would peg rents according to that.” 

Between 2023 and 2024, rents in Ireland climbed by 4.9%. 

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Main image: Micheál Martin. Picture by: Julien Behal Photograph / RollingNews.ie