I welcome the opportunity to appear before the committee to give evidence on the financial statements of the Private Residential Tenancies Board for the financial years ending 31 December 2004, 2005 and 2006. The Private Residential Tenancies Board has been in operation for just over three and a half years. Its activities have evolved significantly since its establishment and the demands on it have been greater than expected. Its staffing structure increased from eight posts, when an ad hoc board was in operation prior to its establishment on 1 September 2004, to 26 in 2005. Recently, sanction was received to increase levels by a further 14 permanent posts, which will bring the total staffing complement to 40. In addition, a significant amount of our data input is carried out by agency staff and the numbers involved have varied depending on necessity in recent years.
The PRTB receives Exchequer funding from the Department of the Environment, Heritage and Local Government. The grant amounted to €154,000 in 2004, €1.703 million in 2005, €2.974 million in 2006 and €5.74 million in 2007. The 2008 allocation is €4.644 million. The main reason for the increase in 2007 was the relocation of the board's offices to O'Connell Bridge House in D'Olier Street. The board is also in receipt of registration fee income which amounts to €70 per tenancy if registered within one month of commencement of the tenancy or €140 if the application is late. A fee of €25 applies to dispute resolution applications, while a fee of €40 is payable in the event of an appeal against the board's determination order.
Reflecting the unprecedented growth in the private rented sector, the system of tenancy registration has been very successful, with almost 218,000 tenancies registered, which is representative of almost 99,000 landlords and over 360,000 tenants. This significant success in the area of registration has resulted in an increase in the level of registration fee income from €153,000 in 2004 to €4.9 million in 2005, almost €6 million in 2006 and in excess of €6 million in 2007. Under statutory direction, five sevenths of the registration fee income is allocated to fund local authority functions relating to the private rental sector. The manner in which this money is transferred and the timing of such payments are in accordance with directions from the Minister, having regard to relevant considerations, including the total amount available for distribution, the level of tenancy registrations in different local authority areas, the level of activity undertaken by each local authority in the performance of its functions under the standard regulations and the need to maintain consistency from year to year in the provision of such funding. The balance of the registration fees, two sevenths of the total, is retained by the PRTB to defray the expenses of the board in the administration of its functions. While the board has not used any portion of the fee income towards its administrative costs to date, it is expected that in excess of €2 million will be used this year for the implementation of an ICT strategy and additional staffing.
The operation of a landlord and tenant disputes resolution service is the core function of the PRTB. This is a quasi-judicial function in which the PRTB has taken the place of the courts. The demand on the disputes resolution service has risen significantly from almost 900 applications in 2005, to 1,300 applications in 2006, over 1,500 in 2007 and over 420 already this year. Taken in the context of the number of tenancies registered, the level of complaints is less than 2%. While a number of applications are subsequently resolved or withdrawn, the number of valid cases was close to 2,800 at the end of last year. In addition, the number of requests for tribunals increased from 37 in 2005 to 98 in 2006 and 155 in 2007.
Since its inception the board has made determination orders in over 1,000 cases and a further 500 cases are at an advanced stage of processing. While acknowledging that there are delays, the board is reviewing its processes and procedures with a view to reducing processing times and providing a more efficient service. Consultants have commenced work on the development of an ICT strategy which will deliver an integrated data management system that will meet all of the PRTB's current and future business requirements. The board is also finalising its review of the 2004 Act and has identified legislative amendments that will simplify the process and assist its general operation.
In accordance with the provisions of sections 146(2) and (4) of the Residential Tenancies Act 2004, the board receives data from the Department of Social and Family Affairs on dwellings where the tenants are in receipt of rent supplement. The board is in a position to cross-check this information with its database and issue enforcement notices where the landlords are not registered. It has also provided the Department with information on rent levels which assists that Department in reviewing its rent thresholds for rent supplement. Also, in accordance with the provisions of section 148(2)(b) of the 2004 Act, the board has provided details for the Revenue Commissioners on tenancies registered. This information is provided on the basis of a request being made and Revenue furnishing details of the landlord’s PPS number or the name of the landlord and the PPS of the landlord’s agent. The information provided relates to confirmation as to whether the landlord has registered a tenancy and, in the event of there being one or more tenancies registered, particulars in respect of them as the Revenue Commissioners may require.
The PRTB uses information from other sources, including public representatives, tenants who have taken cases to the board, the general public and local authorities, to identify non-registered landlords. To date, the board has issued over 6,000 enforcement notices to landlords for failing to register a tenancy and it will continue to pursue and prosecute those landlords who have not registered. The penalties for not registering a tenancy are a fine of up to €3,000 or imprisonment for up to six months or both. In December 2007 the board was successful in its first case taken against a landlord for failing to register. The landlord was fined €1,500 in the Dublin District Court. A further 150 legal warning letters have issued and files are being prepared to advance against those who have not responded.
In the disputes area where a determination order of the board is not complied with, it is open to either party to the complaint or the PRTB to seek enforcement of the order through the courts. In practice, the vast majority of enforcement actions are taken by the PRTB. The board has been successful in enforcing its orders through the courts. To date, legal proceedings have been taken in almost 130 cases, 27 of which were section 124 prosecutions in respect of direct compliance with an order, of which 20 have been upheld by the courts, while seven remain to be processed. Three of the court orders were for repossession of the dwelling. The remaining 100 cases sought criminal convictions under section 126 of the Residential Tenancies Act, 50 of which were subsequently settled in advance of a court hearing and in 30 of which convictions were obtained. In most of these cases costs plus fines were awarded to the PRTB. Of the nine judicial review proceedings taken against the PRTB, five have been completed and decisions were in favour of the board.
The board has engaged the Centre for Housing Research to manage its research projects. The most recent study undertaken was an international review of dispute resolution mechanisms in regard to deposit retention and third party complaints of anti-social behaviour in the private residential tenancy sector. Submissions on the consultant's report on the study were invited towards the end of last year and the board is examining a review of the submissions received.
An analysis of the 2005 and 2006 determination orders of the board was also carried out and will shortly be available. The board plans to publish this year a rental index based on the rent information it receives through the tenancy registration process.