Planning gridlock, not rent caps, seen as key barrier to rental supply

Just 8% of property professionals believe the expected revisions to Ireland’s rent caps will significantly improve the housing market, a new Mason Hayes & Curran survey has found.

The survey results, based on 400 stakeholder responses at the firm’s 2025 Built Environment Summit, suggest a disconnect between proposed Government measures and on-the-ground realities.

Almost six in ten respondents (57%) say rent cap changes will be only “somewhat impactful,” while over a third (35%) expect little or no impact.

Over half (55%) pointed to faster planning decisions as the single measure that would most increase rental supply.

Only 15% chose rent cap reform, while one in five (22%) said tax relief for landlords would make the biggest difference.

Vanessa Byrne, Partner and Co-Head of Real Estate at Mason Hayes & Curran, said: “Extending rent caps may provide reassurance for tenants, but it won’t shift the fundamentals of supply (and result in less stock if small landlords leave the market). Our survey shows clear consensus: planning delays and fragmented infrastructure delivery are the real roadblocks.

“Our event focused on the urgent challenges facing our clients and the property sector – how we can deliver housing and infrastructure at scale and rapidly.

“In our daily work advising stakeholders, we see the multiple challenges faced by the sector. The Summit is our contribution to bringing key decision makers together, clarifying what the goals are and driving the dialogue into actions.”

Speaking at the summit, Michael Hynes, CEO of Ireland’s largest privately owned developer, Evara, said:

“Ireland has one of the most stringent rent cap policies in Europe and apartment completions are down 24%. It’s really disappointing that the Government hasn’t learned a lesson from that.”

Planning emerged again as the biggest barrier to infrastructure delivery in support of new housing.

Over half (51%) of respondents said the planning system is the main obstacle, while three in ten (30%) pointed to overregulation and 19% to a lack of public resources.

When asked which type of infrastructure is currently the most critical, half of respondents (50%) selected water services, followed by transport (28%) and electricity (22%).

Deirdre Nagle, Mason Hayes & Curran Partner and Head of Planning and Environment Law, moderated a panel on Planning & Infrastructure.

She commented: “We heard clearly that delays aren’t just technical, they’re structural.

“From planning complexity to fragmented infrastructure coordination, Ireland needs a more joined-up approach.

“Until we streamline planning and resource allocation, we will struggle to meet housing and infrastructure targets.”

Close to six in ten (58%) respondents said they would vote against a constitutional amendment to include a right to housing, while four in ten (42%) said they would support it.

Asked how best to bring vacant and derelict properties back into use, responses were split evenly between increased refurbishment grants (45%) and higher vacant site taxes (44%).

Only 11% chose greater use of compulsory purchase orders.

Jamie Fitzmaurice, Real Estate Partner at Mason Hayes & Curran, chaired a session on Rethinking Housing Policy.

He said: “Ireland has seen various policy interventions into the housing market over the years, and, despite good intentions, there has been unintended negative consequences for Irish businesses and for the in-flow of international capital.

“We need evidence-based solutions that encourage investment and address the root causes of supply constraints.”

Almost all (93%) believe the Government must do more to support alternative funding models for social housing.

Only one in four (25%) believed the State could meet social housing demand through public funding alone.

Eoin Traynor, Financial Services Senior Associate at Mason Hayes & Curran, chaired a panel on Unlocking Capital and said: “Ireland must move beyond reliance on public funding and embrace new sources of long-term capital.

“We need to make social housing a more investable, bankable asset class if we want to attract sustained institutional support.

“Clear, consistent policy and faster planning is what will unlock significant private capital for housing.”