1. Vulnerabilities in a Recovering Market: Experiences of Low Income Tenants in the PRS ENHR Private Rented Markets Seminar 20 th March 2015

2. Caroline Kelleher, DKM Economic Consultants

3.  Trends in Private Renting  Low Income Tenants in Ireland  This Research Paper  Primary Data  Results  Issues to Consider

4.  Financial downturn  Risks of homeownership  Cost of house purchase  Demographics  Lifestyle choice

5.  Inability to sell - increase in properties for rent  Postponement of house purchase  Shift in social housing policy  Demographic and social changes

6.  Lack of rented accommodation - rent burden  Focus Ireland - 40 families a month become homeless  Landlords do not wish to rent to social assistance tenants ◦ Housing Assistance Payment (HAP) ◦ Employment Equality (Amendment) (No 2) Bill

7.  Views of low income tenants renting in Ireland  Comparisons other tenant groups  Key Issues include: ◦ Reasons for Renting ◦ Sourcing Rented Accommodation ◦ Satisfaction with Renting ◦ Rent Burden ◦ Views on issues in the sector

8.  Tenant survey -major review of the PRS in Ireland  Online interviews  Fieldwork - May 2014  Sample of 500 tenants

9.  Low Income Tenants – 260 respondents ◦ Rent Supplement or Rental Accommodation Scheme (54%) ◦ Unemployed ◦ Social class comprised category ( C2, D, E )  Other tenants -201 respondents  Students were excluded

10. Low Income Others Male**50.4%59.7% Female**49.6%40.3% Republic of Ireland **66.9%75.6% UK (incl Northern Ireland)8.5%6.0% Other Europe**19.4%10.9% Rest of World5.2%7.5% Negligible differences between the groups across the Marital Statuses and Age Profile Females and Other Europeans were statistically more likely to fall into the low income tenant group

11. More freedom of choice among other renters Low income tenants may have few options outside of the PRS Low Income Others Suits my requirements best *29.4%36.8% Can't get a mortgage - don't have the deposit saved/ savings to purchase 29.8%36.3% Can't get a mortgage - not earning enough or job is unstable/ on contract** 33.1%23.9% Not sure where I want to settle down/ live long term *** 16.9%27.4% Convenient to things I need to be close to (e.g. work, school, family)* 15.7%21.9% Feel I am too young to buy a property**8.1%14.9% Can't find a suitable property to buy10.1%10.4% Waiting to be offered social housing (local authority or voluntary body)*** 14.9%1.0% Only in the area for a limited time i.e. college, job contract etc ** 3.2%8.0% Notes: Significance: ***, 0.01; **, 0.05. *, 0.1

12. Low Income Others Did you sign a lease when moving in?*82.7%76.1% Do you have a copy of the lease? *** 90.7%99.3% Were you required to provide references from previous tenancies or employers? ** 48.4%57.7% Do you have a rent book or do you receive a quarterly rent receipt from the landlord? ** 27.4%19.4% Were you required to provide a security deposit to your landlord? 89.1%91.0% Did the landlord/agent carry out an inventory on the property prior to you moving in? 41.9%41.8% ‘Very difficult to source accommodation at present’. Unprecedented lack of rental stock in Ireland More onerous requirements for Low Income tenants? Notes: Significance: ***, 0.01; **, 0.05. *, 0.1

13. Overall satisfaction levels were high Lower levels of satisfaction evident among low income tenants Low Income Others The condition of the property ** 43.5%53.7% How safe your property is *** 47.2%60.2% Your landlord*** 47.6%64.7% The security of your rental situation * 39.5%47.8% The location of the property*** 58.5%75.6% The rent that you pay relative to the property 35.1%38.8% Could suggest poorer standard of accommodation May link back to:  obtaining copies of the lease  tenancy inspections  repairs and maintenance Notes: Significance: ***, 0.01; **, 0.05. *, 0.1

14.  Rent Supplement ◦ 47% Rent Burden 30%+ ◦ 15% - Rent Burden 50%+  Other Low Income Tenants (ex RS) ◦ 60% - Rent Burden 30%+ ◦ 20% - Rent Burden 50%+ Low Income Others 30% or less ***45.2%62.7% 31-50%35.9%31.3% 50+% ***17.7%4.5% Notes: Significance: ***, 0.01; **, 0.05. *, 0.1

15. Low IncomeOthers Lack of supply was driving rent increases** 52.6%62.9% More likely to rent long term if there was a possibility of a long term lease** 35.1%23.9% Happy to rent long term* 18.1%12.4% Not fully aware of their rights*** 38.3%26.4% Majority of all tenants agreed that: ◦ the lack of supply was driving rent increases, ◦ the government should incentivise the supply of accommodation ◦ that rent increases should be regulated

16. Findings Options Sourcing Accom. Requirements SatisfactionTrade OffRent Burden

17.  Rent affordability and supply of accommodation  Housing market pressure is increasing ◦ Buy to Let (BTL) investors exiting the sector; ◦ New Central Bank of Ireland rules on mortgage lending  Further rent increases ◦ Significant for rent supplement tenants ◦ Need for greater supports for the intermediate tenant market  Potential for long term renting,  PRS needs to become more of a policy focus