Irish Build-to-Rent Schemes Create Future Social Housing Burden for State

Rising prices in the Irish property market yield attractive profit margins for build-to-rent private investors. Critics argue that while these investors claim to help the market, they are creating a future burden for the State.

The high rents of these schemes are only affordable to those on significant wages. Upon retirement, when pensions are often less than half of working wages, these individuals will need less expensive accommodation. Private developers are not interested in lower-return tenants, meaning the State will likely be left to provide social housing for them.

This system allows private investors to profit from high earners during their working years, then leaves the State to cover costs when renters can no longer afford private rents. To mitigate this, a requirement for schemes over 10 units should include a 50 per cent owner-occupied stipulation, similar to Part V of the Planning and Development Act.

Developers may threaten to leave the market, but Ireland's political stability, EU membership, and growth make it commercially attractive. Their bluff should be called, as other investors would quickly replace them due to still-attractive margins. The government needs to be firm in delivering housing, despite opposition parties using housing as a political football, which leads to short-term policies detrimental to the Irish people.