Attitudes to the private rented sector in Ireland: Landlord and tenant survey results

ENHR, London March 2015

David Duffy, ESRI

Outline

• Backdrop to survey• Landlord survey• Tenant survey

Context

• Surveys undertaken May/June 2014– Part of major study

• Rising rents• Calls for rent controls• Concerns about supply, evictions,

homelessness• BTL mortgage arrears

• Methodology LANDLORDS: Telephone survey, sample of 400, fieldwork between 4-21st May Respondents sourced using database of registered landlords (PRTB); using RED

C CATI centre (Dundalk), landlords were called on the phone number provided; TENANTS: Online survey, sample of 500, Fieldwork between 13-19th May Respondents sourced using the RED C Live panel of 30,000 respondents; an

email sent to those who matched the criteria of being private renters, and completed the survey online

ESTATE AGENTS: Telephone survey, sample of 100, Fieldwork between 19-26th May

Respondents sourced using a combination of daft.ie and myhome.ie; using RED C CATI centre(Dundalk), estate agent offices were called during office hours, interview was conducted with the most senior member of staff in the office at that time.

Red C Surveys of landlords, tenants and estate agents

Census 2011: Profile 4 “The Roof over our Heads”

• Number of households increase by 187,112 since Census 2006

• Number of households renting increase by 152,000

• Homeownership rate falls from 74.7% to 69.7%

% households in the PRS (1946-2011)

1946 1951 1961 1971 1981 1991 2002 2006 20110

5

10

15

20

25

30

35

40

45

%

PRTB Rent Index shows rental growth

Q3 2007

Q1 2008 Q3

Q1 2009 Q3

Q1 2010 Q3

Q1 2011 Q3

Q1 2012 Q3

Q1 2013 Q3

Q1 2014 Q360

80

100

120

National Dublin Outside Dublin

Q3

2007

=100

Prices and Rents

Q3 2007

Q1 2008 Q3

Q1 2009 Q3

Q1 2010 Q3

Q1 2011 Q3

Q1 2012 Q3

Q1 2013 Q3

Q1 2014 Q30.0

20.0

40.0

60.0

80.0

100.0

PRTB Rent Index CSO National House Price Index

LANDLORDS

Age profile of landlords

27-34 yrs6%

35-44 yrs23%

45-54 yrs33%

55-64 yrs23%

65+ yrs16%

Average age of landlord respondents is 52 years

How many years a landlord?

1 to 5 yrs34%

5-10 yrs46%

Over 10 yrs20%

Average is 9 years

How many rental properties do you own?

1 property64%

2 properties17%

3 properties9%

Over 3 properties10%

Average is 1.9 properties

Reasons for becoming a landlord

Property a good inv.

Additional income

Had to move (negative equity)

Moved in with partner

Bought for chil-drens future use

Pension/nest egg

Inherited the property

By accident Other0

5

10

15

20

25

30

35

40

45

Rental Income relative to Mortgage/ Loan Repayments

Falls short71%

Covers23%

Exceeds6%

Future Plans as Landlord

Remain, no more proper-

ties62%

Sell as soon as possible

29%

Remain, buy more properties

4%

Undecided5%

TENANTS

Age profile of tenants

18-24 yrs18%

25-34 yrs45%

35-44 yrs23%

45-54 yrs10%

55+ yrs4%

Average age of landlord respondents is 33 years

81% of tenants share, of which...

Partner and children

Partner Other adults Friends Living with children

Other0

5

10

15

20

25

30

35

40

Length of Time Renting Current Property

Length of Time Renting

Current and long term tenancy duration

0-6 months16%

7-24 months40%

2-4 years26%

4+ years18% 0-6 months

5%

7-24 months12%

2-4 years18%

4+ years65%

Why currently renting?

Suits re-quirements

best

No deposit to buy

Earnings too low to buy

Not sure where want to live long

term

Convenient to work etc

Too young to buy

Only in area for limited

time

Can't find a suitable

property to buy

Waiting to be offered social

housing

Other0

5

10

15

20

25

30

35

For many, renting a stage on the way to home ownership

Suits re-quirements

best

No deposit to buy

Earnings too low to buy

Not sure where want to live long

term

Convenient to work etc

Too young to buy

Only in area for limited

time

Can't find a suitable

property to buy

Waiting to be offered social

housing

Other0

5

10

15

20

25

30

35

Assessment of renting experience

Positive61%

Neither positive or negative

27%

Negative12%

Location of property

Amount of rent relative to the property

Your landlord

How safe your property is

Security of your rental situation

Condition of the property

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Satisfied Indifferent Dissatisfied

How satisfied with these aspects of your rental property

Happy renting, see myself renting long-term

Renting as can't afford to buy

Renting is great, don't have responsibility of owning

Rent long term if possibility of long lease (3-4 yrs)

Rent long term if possibility of agreed rent (3-4 yrs)

Not fully aware of my rights

Would prefer to own my own home

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Agree Neutral Disagree

Do you agree with following....

Why do over 70% want to buy?

Prefer to purch

ase

Like to

decorate/fu

rnish

own home

Better to own/good in

v.

Pass on to

child

ren

No tenure se

curit

y renting

Want to

live alone in

own home0

10203040506070

Why do over 70% want to buy?

Prefer to purch

ase

Like to

decorate/fu

rnish

own home

Better to own/good in

v.

Pass on to

child

ren

No tenure se

curit

y renting

Want to

live alone in

own home0

10203040506070

What are my rights?

• 33 per cent of tenants agree with statement that they are not fully aware of their rights

Issue also emerged in estate agent survey• 51 per cent of estate agents said landlords not

aware of rights, 52 per cent said not aware of responsibilities

• 34 per cent of estate agents said tenants not aware of rights, 69 per cent said not aware of responsibilities

Future intentions

Yes32%

No48%

Don't know,

not sure20%

Intend staying in PRS for the next few years

How do views compare?

Tenant: Accom. standards are improving

Landlord: Accom. standards need to improve

Tenant: lack of supply driving rents

Landlord: lack of supply driving rents

Tenant: Rent increases should be regulated

Landlord: Rent increases should be regulated

Tenant: Govt. should incentivise supply

Landlord: Govt. should incentivise supply

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Agree Neutral Disagree

Summary

• All identify supply as an issue• For many tenants renting is a transition to home

ownership• Overall tenant perception of renting is positive• Over one third of landlords are “accidental” landlords• One third of tenants intend to stay in the sector, close

to 30% of landlords intend to leave.• Possible policy options:

– Security of tenure– Unfurnished accommodation