The Threshold report ‘Opportunity Knocks?: Institutional Investment in the Private Rented Sector’ will be launched on Thursday 16th December @ 11.30am by the Minister for Housing and Urban Renewal, Noel Ahern TD, at the offices of the Irish Bankers Federation, 4th Floor, Nassau House, Nassau Street, Dublin 2.
Threshold, the national housing organisation, is today launching a report (11.30am) that calls on Government to help increase the supply of affordable rented housing by actively encouraging banks, insurance companies and other financial institutions to invest in property in the private rented sector.
Unlike countries such as the Netherlands, France and Sweden, major financial institutions in Ireland do not directly invest in property in the private rented sector. In other European countries, market indices are published that include detailed information on rents and income yields that help financial institutions to make investment decisions. In addition to calling on the government to make sure that such property market indices are published in Ireland, Threshold is asking government to investigate the feasibility of establishing an appropriate ‘intermediary vehicle’ (like Real Estate Investment Trusts in the United States) that would make it easier for financial institutions to invest in the private rented sector without involving direct contact between institutions and tenants.
Aideen Hayden, Chairperson of Threshold, said:
“People in the private rented sector pay a higher proportion of their income on housing than any other sector. Affordability is a real problem at the bottom end of the market.
Threshold is spearheading innovative efforts which will increase the supply of low cost accommodation. We hope that this report will assist the government to bring about an environment that will facilitate banks investing in the private rented sector in Ireland.
But while increasing the involvement of financial institutions in the supply of private rented accommodation is desirable, the Government cannot abdicate its responsibility to provide desperately needed social housing for people on low or no incomes.”
Diarmuid Bradley, President of the Irish Bankers Federation, said:
“It is in the national interest to have an informed debate about such important issues as housing and accommodation and to develop sound policy on the basis of such debate. It is important that all key parties, from lenders to investors, landlords to tenants, are afforded the opportunity to make an informed contribution to such a debate.”