A new report from the National Economic and Social Council calls for rent regulation and longer leases to tackle the problems in the rental sector.
The lack of supply of housing could be dealt with through the provision of low-cost loans and more favourable tax treatment of rental income, according to the advisory group.
Tenants need greater rent certainty, according to the NESC report, and it could be provided through a market-sensitive form of regulation and adjustment.
The report calls for a move to leases which are effectively indefinite.
The NESC is the senior advisory group to Taoiseach Enda Kenny, and this report was noted at Cabinet yesterday.
It calls for measures to increase the supply of rental housing, including low cost loans and loan guarantees to landlords, so long as rents are affordable.
The tax treatment of rental income should also be reformed to include full relief of landlords' interest payments, if tenants are provided with secure occupancy.
This report comes just days after a Daft.ie report showed the supply of rental homes is at its lowest point in almost a decade.
Speaking on RTÉ’s Today with Sean O'Rourke, Fintan McNamara of the Residential Landlords Association said that changes needed to be incentivised and implemented on a voluntary basis.
Mr McNamara said: "This may work if there is a substantial increase or a comprehensive improvement in the tax system for landlords because 60% of rental income currently, or in excess of that, goes back to the state in a variety of charges.”
He said landlords should be encouraged to adopt giving longer leases, adding: “I believe it should be done on a voluntary basis, only available to those landlords who really want to buy into it.
“Because if it's imposed blanketly across the sector, what will happen is you'll have a significant flight of investment."
