Rent control row 'scaring off investors'

The reason property prices continue to rise is a lack of homes coming on to the market, with a rental sector failing to offer secure tenancies and rent certainty

Peter Flanagan

October 20 2015 08:33 PM

Investors are holding off putting their money into new homes because of the Government's bumbling in the rental market, it has been claimed.

Rent control legislation was not included in the Budget last week, but Environment Minister Alan Kelly said there would be measures for "rent certainty" announced in the months ahead.

According to Goodbody chief economist Dermot O'Leary, investors are avoiding putting money into new homes until the issue is resolved either way.

In a note to clients, Mr O'Leary warned that "confusion over rent certainty is already acting as a deterrent to new entrants in the market".

The lack of action means investors who may finance new home building are avoiding the market until they know what the future rental environment will look like, thus exacerbating the housing shortage.

Meanwhile US investment firm Kennedy Wilson has been given the go-ahead for a huge apartment and office development in the Dublin docklands after the council granted planning permission today.

In a statement, Kennedy Wilson and its joint venture partner Nama said it secured planning permission for its Capital Docks development.