Ireland facing a rental market takeover by institutional investors, IPOA warns

Ellen O'Donoghue

Ireland is facing a rental market takeover by institutional investors, the Irish Property Owners Association (IPOA) has warned.

The organisation has said that Ireland's private rental sector is approaching a "critical breaking point", with recent government reforms accelerating the exit of small and medium sized landlords, paving the way for an "institutional takeover of the market."

Launching its Pre-Budget Submission 2027, the IPOA said the continued loss of independent landlords risks creating a rental sector increasingly dominated by large institutional investors.

That would fundamentally change the nature of rental housing in Ireland and reduce choice, flexibility, and stability for tenants, it said.

The warning comes amid mounting evidence of deepening instability across the sector.

According to the latest Residential Tenancies Board (RTB) quarterly update, more than 7,000 notices of termination were issued in the first quarter of 2026 alone.

That is the highest level on record, and 60 per cent are linked to landlords intending to sell their properties, according to the IPOA.

The proportion of tenancies held by landlords in Dublin with one to three properties fell from 40.4 per cent in Q1 of 2024 to 36.5 per cent in Q1 2026, while landlords with four or more tenancies increased their share from 59.6 per cent to 63.5 per cent over the same period.

The IPOA warned that similar trends are emerging outside Dublin, "where the loss of small independent landlords is reducing already limited availability in many rural towns and villages".

The IPOA said these trends are "direct consequences" of Government policy choices that have made remaining in the rental sector financially and operationally unviable for many ordinary landlords.

Mary Conway, IPOA chair, said that small and medium sized landlords, "who have been the backbone of rental supply in communities across the country for decades, are being driven out of the market by unfair taxation, regulatory burdens and a policy environment that no longer recognises rental provision as a viable business.

"If current trends continue, Ireland will increasingly be left with a rental sector dominated by large institutional investors and corporate funds. That is not healthy for tenants nor for the long-term stability of the housing system," she said.

The organisation warned that the sector is now facing a "dangerous tipping point," where policy designed to improve affordability is "instead contributing to worsening shortages, higher rents and reduced availability.

"Without landlords, there is no rental market,” Conway said.

“Every landlord leaving the sector means one less home available to rent. The consequences are already visible through record rents, unprecedented competition for limited supply, and increasing pressure on tenants across the country.”

The IPOA said Budget 2027 represents a "critical opportunity" to prevent further collapse in rental supply and restore confidence in the sector.

Its submission calls for a targeted package of supply-side measures, including recognising landlords as businesses for tax purposes, reforming capital gains tax to support the retention of rental properties, improving cash flow and reinvestment capacity for landlords, extending rental income tax reliefs and reducing the punitive tax burden imposed on small and medium landlords.

“This is not a debate about landlords. This is about whether Ireland will continue to have a functioning private rental sector at all,” Conway said.

“If meaningful action is not taken in Budget 2027, the State risks sleepwalking into a two-tier rental system dominated by institutional investors, shrinking supply, permanently elevated rents and fewer options for tenants.”

“The Government still has an opportunity to change course. But that window is rapidly closing," she warned.