The Society of Chartered Surveyors Ireland is very concerned that new rent controls which the Government is planning to introduce will impact negatively on the residential investment sector.
The SCSI said the current rental crisis is mainly due to the lack of supply and the current situation of unsustainable rent rises could continue until that is addressed.
The President of the Society, Claire Solon said that while they fully understood the plight of people in rental accommodation, the Government has to ensure that its interventions in the rental market do not make a bad situation worse.
“The Government is continually grappling with the effects of the housing shortage, not the cause. Well intentioned but ill advised interventions will have unintended consequences on the market, including an impact on investment” she said.
“While rent controls may well curb rent increases in the short term they may also curb investment at this critical time. Markets abhor uncertainty and the constant flux around policy, taxation and legislation may well lead to investors exiting the market at the precise moment when we need more investment and supply. We are already seeing signs that the shortage of rental accommodation is acting as a brake on inward investment and the latest moves will only add further to those concerns” Ms Solon concluded.