David W Higgins: Who is to blame if it suits landlords to leave homes empty?

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David W Higgins

Eoin McGee has learned the hard way that telling the truth about rent controls can get you into trouble. The country’s foremost financial planner took to Instagram on Thursday to tell his followers that for a handful of his clients with rental property, he’s obliged to advise them that the best financial decision might be to leave the home vacant for two years.

It’s important to first unpack why this is happening. Rent controls previously set a limit of 4pc for annual increases. This was lowered to 2pc at the end of 2021 in a further attempt to protect tenants from rising rents. These caps apply in rent pressure zones (RPZs), covering most large urban areas. The end of 2021 was a different world. Inflation had only just begun to pick up. As we have passed two full years at the lower limit, inflation has grown to levels much higher, and wages are now catching up.