LANDLORDS are leaving the rental market in huge numbers after years of tax hikes and other penalties, according to a leading Cork property agent.
Commenting in the wake of Fianna Fáil’s new rental policy document announced yesterday, Sheila Flynn of Sherry Fitzgerald, said that renting out a home was no longer viable for many.
Fianna Fáil are proposing new measures like limiting rent increases to within 10% of the average rent in an area for the previous four years.
They also encourage indefinite leases, to make renting a home a more stable option for families who can’t afford or choose not to buy. The party would also introduce a deposit retention scheme, with a central agency taking deposits instead of landlords, to limit disputes.
However, Ms O’Flynn said that parts of Fianna Fáil’s strategy were “unfeasible” as they put too much burden on landlords. “Tenants have to be protected, but landlords need to be protected as well. Landlords are service providers but they can’t take all the penalties,” she said.
Ms Flynn said that landlords were already under pressure after years of tax hikes and rent drops, and may not be able to absorb such changes.
“A lot of landlords are in negative equity. That’s the reason a lot of them are selling. We are selling more houses for landlords then we are for homeowners,” she said.