Fr Peter McVerry has warned we have 'passed the tipping point' with landlords in the private rental market.
He was speaking as the Government could offer tax incentives to landlords if they offer tenants a longer lease, as part of the upcoming budget.
He told The Hard Shoulder he would welcome such a move, if it works.
"I'm open to anything that will improve the situation, and if this works of course I'm in favour of it.
"I have certain reservations though: landlords are constantly terminating leases in the middle of the lease because they want to sell their property, or they want to use it for their long-lost aunt who's just come back from Australia.
"So there would need to be strict conditions attached to this."
He said it has to be harder to terminate leases, including compensation.
"There would need to be either no possibility of terminating the lease before the end of the lease.
"Or if a lease was terminated, there would have to be... substantial compensation paid to the tenants.
"In some European countries if the landlord terminates the lease before the end of the lease, then the tenant may be entitled to compensation of up to €20,000.
"I'm in favour of anything that might work".
'More landlords are going to exit'
But he said it's unlikely to draw private landlords back into the market.
"I think with regard to the private rented sector, I think we've passed the tipping point actually.
"I think more and more landlords are going to exit, and there's not much we can do about it".
He said the high price of houses is causing the exodus - as well as a tax law.
"If you bought between 2011 and 2014, and you held on to your property for seven years or more, you didn't pay any Capital Gains Tax when you sold it.
"And here we are, eight years after that, and I think landlords are cashing in on that".
And Fr McVerry said he believes landlords are taxed too high as it stands.
"I would favour offering landlords, who would reduce the rent by 30%, I would offer them a 50% rebate on the tax paid on their rental income.
"That's a win for the tenants and it's a win for the landlord.
"Even though their rent goes down by 30%, they still make more money", he added.
