1. The property industry’s role in the supply of private rented housing Peter Stafford, Director Property Industry Ireland

2. Why invest? “Portfolios of rented homes can provide strong and stable income at a time where traditional investments are underperforming.” CEO, Essential Living, The Guardian (26 February 2014)

3. Why invest “While small portfolio landlords have an important role in the market rented sector, it is reasonable to hope that greater institutional investment could lead to the development of new products that better meet the needs of many London renters, and might also help to improve standards sector-wide.” Centre for London Institutional Investment in London’s Market Rented Sector (Report for the City of London Corporation, January 2013)

4. UK Government position “If the housing market were working well, strong and sustained demand for housing would prompt a steady increase in supply. However, this has not been the experience of recent decades.” “With demand for rental housing likely to continue to rise, we must continue to support innovation and investment.” HM Government Laying the Foundations: A Housing Strategy for England (November 2011)

5. Investment tools Customer demands Activities of existing investors Leading indicators Barriers to investment Predicting future returns

6. Investment tools Customer demands Activities of existing investors Leading indicators Barriers to investment Predicting future returns

7. Tenants’ intention to remain renting PRTB/DKM

8. Investment tools Customer demands Activities of existing investors Leading indicators Barriers to investment Predicting future returns

9. Rental income compared to loan / mortgage PRTB/DKM

10. Intention of landlords PRTB/DKM

11. Profile of vendors Sherry FitzGerald Research

12. Profile of purchasers Sherry FitzGerald Research

13. Investment tools Customer demands Activities of existing investors Leading indicators Barriers to investment Predicting future returns

14. Investment tools Customer demands Activities of existing investors Leading indicators Barriers to investment Predicting future returns

15. Threshold: Barriers to investment inadequate revenue income due to the greater service obligations associated with managing residential compared to renting commercial property; few opportunities for reducing management costs because residential purchase opportunities are generally modest in size (individual apartments rather than apartment blocks); buy-to-let mortgages are available which enable individuals to invest in the private rented sector but no financial products have been devised to support investment by institutions; inadequate data on rent yields; a poor legislative framework for the governance of the private rented residential sector. Threshold (2004) Opportunity Knocks?: Institutional Investment in the Private Rented Sector in Ireland

16. Investment type Opportunistic Embedded

17. Cost of apartment construction Additional cost of Local Authority Residential Guidelines compared to DoE Standards Apartment sizeDublin City Dual aspect rulesDun Laoghaire Rathdown Floor to ceiling heightsFingal BalconiesSouth Dublin Cork

18. Additional construction cost per room of a 2-bed apartment

19. Investment tools Customer demands Activities of existing investors Leading indicators Barriers to investment Predicting future returns

20. Housebuilding DECLG

21. Planning permissions

22. Investment type Opportunistic Embedded

23. Investment tools Customer demands: Increasing Activities of existing investors: Reducing Leading indicators: Undersupply Barriers to investment: Changing Predicting future returns: Regulatory environment uncertain

24. The property industry’s role in the supply of private rented housing Peter Stafford, Director Property Industry Ireland www.propertyindustry.ie info@propertyindustry.ie