Corporate Landlords Tighten Grip on Dublin’s Rental Market, RTB Report Shows

Dublin’s rental landscape is undergoing a significant transformation, with corporate landlords now managing a substantial portion of the private rental sector. The latest report from the Residential Tenancies Board (RTB), released Wednesday, reveals that landlords owning 100 or more tenancies now control the largest percentage of private rentals in the capital, accounting for 26 percent. This marks an increase from 22 percent during the same period in 2023. The RTB data also highlights rising rents and ongoing efforts to enforce Rent Pressure Zone (RPZ) regulations, raising questions about affordability and the future of housing in Dublin.

The Residential Tenancies Board’s quarterly update indicates a growing concentration of rental properties in the hands of larger entities. Landlords with 100 or more tenancies in Dublin now manage 26 percent of all private tenancies registered. In contrast, individual landlords with just one tenancy represent 23 percent of the market, while those with between two and 99 tenancies make up the remaining share, according to the RTB report.

The Ascendancy of Corporate Landlords

While the RTB report refrains from explicitly naming specific companies, it acknowledges that the larger, mainly corporate or institutional landlords include prominent entities such as Ires Reit, kennedy Wilson, and Ardstone Capital. These companies play a significant role in shaping the rental landscape of Dublin, influencing both the supply and pricing of available properties.

the increasing presence of corporate landlords has ignited debate about the direction of housing policy in Ireland. Taoiseach Micheál Martin has previously emphasized the need to incentivize private investment in the Irish housing market to boost the supply of homes. However, this strategy has faced criticism from opposition parties, who argue that it leads to the proliferation of high-end, unaffordable rental properties, exacerbating the existing housing crisis.

Soaring Rents Across Ireland

The RTB rent index, published in conjunction with the Economic and Social Research Institute (ESRI), paints a picture of escalating rental costs across the country. The data indicates that average rents for new tenancies have increased by 6.4 percent,reaching €1,693. Existing tenancies have also seen a rise, with average rents climbing by 4.7 percent to €1,429.

In Dublin, the average rent for existing tenancies now stands at €1,870, while new tenancies command an average of €2,226. Limerick city experienced the most significant increase in rents over the past year, with a surge of 12 percent.

Despite the rising costs, the number of private tenancies across the country has increased annually, reaching 240,964 at the end of last year. the number of private landlords has also risen by 4.5 percent to 105,594. Additionally, Approved Housing Body tenancies have grown by 14.5 percent, exceeding 50,500.

Decline in notices of Termination

Interestingly, the data reveals a decrease in the number of landlords ending tenancies. In the fourth quarter of last year, 3,706 notices of termination were received, marking a 7.5 percent decrease compared to the same period in 2023. Furthermore, the percentage of landlords ending tenancies to sell their properties has fallen by over 5 percent, suggesting a potential slowdown in landlords exiting the market.

Rent Pressure zone Enforcement Efforts

The RTB report provides an update on its ongoing Rent Pressure zone (RPZ) enforcement campaign. In October 2024, the RTB initiated a compliance campaign targeting landlords associated with more then 16,000 “tenancies of concern,” where rents were found to have exceeded the 2 percent threshold allowed in RPZs.

Consequently of this campaign, approximately 300 landlords have updated their tenancy records, leading to an average monthly saving of €97 for affected tenants. A further sample of 170 cases were escalated for examination, resulting in the return of approximately €35,000 in overpaid rent to tenants.

The second phase of the compliance drive will involve sending landlords who have not yet engaged in the process forward for examination. Additionally, around 1,000 spot checks will be conducted to ensure compliance with RPZ regulations.

This enforcement effort takes place amid ongoing discussions about the future of rpzs. The Housing Agency is currently conducting a review of the system, with one option being considered is a “reference rent” system. This system would determine rent increases by comparing rents with those charged for similar properties in the local area, rather than relying on the current 2 percent cap.

Rosemary Steen, director of the RTB, commented on the effectiveness of RPZs, stating that “we can see the rpzs are performing well, notably in Dublin,” but emphasized that the decision regarding future rent controls rests with the Government.

Ms. Steen also noted that a reference rents system would require the RTB to gather more data, raising “concerns” about the speed of implementation. She added, “Any changes would require changes in how we are resourced.”

Conclusion

The latest RTB report paints a complex picture of Dublin’s rental market, characterized by the growing influence of corporate landlords, rising rents, and ongoing efforts to enforce RPZ regulations. As discussions continue about the future of rent controls and the best approach to address the housing crisis, the data highlights the need for careful consideration of the various factors shaping the rental landscape in Ireland.

Dublin’s Rental Crisis: Corporate Landlords, Rising Rents, and the Future of Housing

Is Dublin facing a housing crisis driven by corporate landlords, or is the situation more nuanced than that?

Interviewer: Dr. Evelyn Hayes, welcome to World today News. Your expertise in urban economics and housing policy makes you ideally suited to discuss the recent Residential Tenancies Board (RTB) report on Dublin’s rental market. the report highlights the increasing dominance of corporate landlords. What are the key takeaways for our readers?

Dr. Hayes: Thank you for having me. The RTB report indeed paints a complex picture, and to simply label it a “crisis” driven solely by corporate landlords would be an oversimplification. While the expanding role of institutional investors in the private rental sector is a significant factor, the situation is fueled by a confluence of issues—limited housing supply, increased demand, and the inherent challenges of regulating a complex market. The report shows a clear concentration of rental properties in the hands of larger entities, impacting affordability and competition, raising valid concerns about market dynamics and tenant rights.

Interviewer: The report suggests that landlords owning 100 or more tenancies now manage a substantial portion of Dublin’s private rentals. What are the implications of this increasing concentration of ownership?

Dr. Hayes: This concentration of ownership has several significant implications. Firstly, it tends to reduce competition, perhaps leading to higher rents and less responsiveness to tenant needs.Secondly, it can result in a less flexible and personalized landlord-tenant relationship, creating a more impersonal and possibly less responsive system for resolving issues. Thirdly, it changes the dynamic of negotiation, with individual tenants often having less leverage with larger corporations compared to dealing with smaller, self-reliant landlords. The lack of personal connection can often lead to poor maintenance & tenant dissatisfaction. These large corporate landlords, often REITs (Real Estate Investment Trusts) or similar entities are focused on profit maximization, and this can sometimes translate to a less empathetic approach to tenant management.

Interviewer: The report also points to rising rents across Ireland. How significant are these increases, and what factors contribute to this upward trend?

Dr. Hayes: The rising rents, both for new and existing tenancies, are a serious concern.This isn’t confined to Dublin; it’s a nationwide trend pointing to a significant imbalance between supply and demand. Several factors contribute: limited housing construction, increased population growth (both domestic and international migration), increased investor interest in the rental market (including the rise of corporate landlords), and a lack of affordable housing options. Simply put, many more people are competing for to few available rental properties. The government’s efforts to increase the housing supply remain substantially behind the rising demand, making this imbalance even more pronounced.

Interviewer: The RTB is actively enforcing Rent Pressure Zones (RPZs). How effective has this been, and are there option approaches that might be more successful?

Dr. Hayes: The effectiveness of RPZs is a subject of ongoing debate. While the RTB report highlights successes in recovering overpaid rent and making progress in areas such as Dublin, there are inherent limitations. For example, critics argue that they often fall short of adequately curbing rent increases in rapidly escalating markets. Alternative approaches like a “reference rent” system, which compares rents to similar properties in the area, are worth exploring. However, such a system carries significant implementation challenges, requiring extensive data collection and potentially straining resources. It also needs robust oversight and protection against manipulation of the reference prices.

Interviewer: What recommendations would you offer to address the challenges facing Dublin’s rental market?

Dr. Hayes: A multi-pronged approach is needed:

• Increase Housing Supply: This is paramount. Incentivize the construction of both social and affordable housing through strategic investment and deregulation of planning permissions for projects focused on affordable housing.
• Strengthen Tenant Rights: Improve renter protection laws and ensure robust enforcement of existing legislation to help vulnerable tenants.
• Regulate Corporate Landlords: Implement clear regulations specifically for large-scale rental providers, addressing issues of accountability and tenant treatment. Focus should be on establishing minimum and consistent standards for property maintenance and tenant relations.
• Explore Innovative Financing Models: Consider and research alternative models that encourage investment in the housing sector while safeguarding against market speculation and prioritizing tenant welfare over short-term profit maximization.

Interviewer: A final thoght, Dr. Hayes. What’s the most critically vital thing our readers should keep in mind about this issue?

Dr. Hayes: The situation is not solely about corporate landlords; it’s about a systemic lack of affordable housing and insufficient regulation in a dynamic market. Addressing the crisis requires a long-term, thorough strategy focusing on expanding housing supply, strengthening tenant protections, and implementing effective and fair market regulation. This requires collaboration among governments, private stakeholders and tenant advocacy groups. It’s a societal issue where we all have a stake. Let’s discuss this critical issue in the comments section! Share your thoughts and experiences!