Monday 21 October 2019

Housing Minister Eoghan Murphy says 'institutional landlords' are good for Irish tenants

PROPERTY: Housing Minister Eoghan Murphy
PROPERTY: Housing Minister Eoghan Murphy

Wayne O’Connor

Housing Minister Eoghan Murphy has defended the increasing numbers of homes being bought by so called ‘cuckoo funds’ and institutional investors.

Mr Murphy said the shifting housing pattern, with major corporations buying vast quantities of homes as rents continue to soar, is good for tenants.

Housing Minister Eoghan Murphy
Housing Minister Eoghan Murphy

He told the Dáil tenants are afforded greater security and have their homes managed more professionally by institutional landlords compared to a person letting a one-off property.

“It is important to recognise the positive effects that institutional investment can have in terms of supply,” he added.

“Historically the private rental sector has been largely made up of small-scale landlords who will continue to provide private rental accommodation.

“However, a more diverse sector which includes institutional investors specialised in providing and managing private residential accommodation on a larger scale provides additional stability and less exposure to property market risk and volatility. Institutional investors can also provide a variety a range of tenancy options households need across their life cycles.

Housing Minister Eoghan Murphy. Photo: Collins
Housing Minister Eoghan Murphy. Photo: Collins

“The fact that institutional investors are entering the rental market with a clear long term focus on their investment provides security for tenants who can be confident their landlord is committed in the long run.”

Recent research by Savills shows institutional investors spent more than €1.1bn on a record 2,923 Irish homes last year.

Meanwhile, rents and the number of people living in rented accommodation continues to rise.

According to Social Justice Ireland one in 10 Irish households spend more than 60pc of its income on rents.

Mr Murphy said the number of institutional landlords represents a small part of the market.

“Almost 86pc of the registered rental stock is owned by landlords with less than 10 properties, reflecting the fact that the overall proportion of the rental properties held by institutional investors is relatively low.”

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