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Dáil Éireann debate -
Wednesday, 3 Mar 1999

Vol. 501 No. 4

Other Questions. - Private Rented Accommodation.

Michael D. Higgins

Question:

11 Mr. M. Higgins asked the Minister for the Environment and Local Government if his attention has been drawn to claims by the housing organisation, Threshold, concerning a fivefold increase in the number of tenants evicted from private rented dwellings in 1998; the plans, if any, he has to afford additional protection to private tenants, particularly, as many of these evictions seem to be to facilitate redevelopment or sale of property; and if he will make a statement on the matter. [6163/99]

I have seen reports of claims of an increased incidence of evictions from private rented accommodation.

The rights of tenants of such accommodation and the protection available to them are, in the first place, governed by the terms of the lease or other tenancy agreement under which the tenancies are held. These are subject to the provisions of the landlord and tenant code which is the responsibility of the Minister for Justice, Equality and Law Reform. In considering security of tenure issues, there is a need to achieve a fair balance between the rights of both tenants and landlords in a way that is compatible with constitutional requirements and that ensures a continuing investment in the provision and maintenance of rented accommodation. I will consider, in conjunction with the Minister for Justice, Equality and Law Reform, what further action may be warranted and open to us in relation to security of tenure of rented accommodation.

The Minister of State sounds as if he is giving secondhand information on the rate of evictions and as if he casts some doubt on the validity of the information about the number of evictions. Has the Department carried out an assessment of the number of evictions taking place and the reasons for them? Is the Minister of State aware that large numbers of people are facing eviction from private rented accommodation, either because their landlords are moving up-market or are selling the properties? In the last part of his reply the Minister of State informed us that he and the Minister for Justice, Equality and Law Reform are examining the question of landlord and tenant law. Does he or his colleague intend to introduce legislation to amend landlord and tenant law to provide greater security for tenants and to put some control on the excessive increases in rent which are being experienced by tenants in private rented accommodation?

Surveys have shown a positive correlation between increases in house prices and increases in rents. All of this arises from the scarcity in the housing market and the advantage being taken by some landlords. Legislation in this area comes under the remit of the Minister for Justice, Equality and Law Reform. However, I made inquiries in his Department and I have been informed that official statistics are not available on the number of evictions from private rented dwellings in that Department. The statement that evictions have increased fivefold was made by Threshold. It may be relying on information compiled in its offices for the claim of a fivefold increase in 1998. I am grateful to Threshold for the valuable information it makes available which helps in the formulation of housing policy and initiatives in the area of housing. I am very supportive of Threshold and I accept its findings. There are no official statistics, but it is clear, from sources in the property business, that rents have been increasing at a rate equal to the rise in house prices. It is not acceptable that rents should increase because landlords are taking advantage of the current situation. The only long-term solution to this problem is to restore balance to the housing market. Measures such as the integrated area plans, which I announced last week, will help to bring more rented accommodation onto the market. A large amount of rented accommodation has been provided by the section 23 provision and urban renewal schemes in the past. The quality and quantity of rented accommodation are both greater than ten or 15 years ago. However, we are in an era of high demand and this is causing difficulties.

On 9 February I wrote to the Attorney General asking that a detailed examination be carried out, by an expert in the area, of the scope that may exist to improve security of tenure in private residential accommodation, having regard to constitutional rights and legal issues. Last year, I wrote to the Minister for Justice, Equality and Law Reform on a formal basis, on the question of examining ways to provide greater security of tenure. An assurance was given by that Department that, as far as other priorities permit, the matter would be put on its agenda and kept under review.

Legislation dealing with the provision of greater security of tenure would have to take account of the complex nature of the landlord and tenant code and of the constitutional issues. Opposition from landlords can be expected to any attempt to interfere with their rights to recover and use their properties as they see fit. A fair and equitable balance of rights between both parties cannot be easily achieved, but I am anxious to do that.

Part of the assistance I gave to Threshold consisted of the funding of an international conference to examine the area of rented housing. This was held to ascertain the options available and to learn of the experience of other countries in this area. I had hoped we might get opinions and expert advice from countries outside Europe, but most of the speakers came from the European region. However, there may be other opportunities at a later date to do that. Two main findings emerged from that conference. There is no country in Europe to which we can look for evidence of best practice and European governments, in general, are relaxing controls on the private rental sector. Regulation can prohibit property holders from making their property available for rent. It is necessary to strike the right balance. Irrespective of our constitutional difficulties and existing legislation, there is a need to introduce legislation to provide greater security of tenure for tenants while recognising the rights of landlords.

I find it difficult to accept that the Department of Justice, Equality and Law Reform cannot assemble information about the number of evictions, which is readily available in the offices of the county sheriff and the courts. That may indicate the degree of priority with which the matter is being treated in the Department. Does the Minister of State accept that rents for private accommodation are outside the reach of many young working people? As the law stands, landlords can charge what rent they like, they can increase rents to any level and they can seek and get the eviction of their tenants through the courts. Having regard to the balance described by the Minister of State in his reply, does he think that is fair to the tenant? Will he or the Minister for Justice introduce legislation to restore some degree of balance for tenants?

We are not making much headway on this question and four Deputies are offering to speak on this question.

I appreciate that. Will the Minister of State arrange to introduce legislation to provide fair rent and security of tenure for tenants, which they do not enjoy at present?

It is important to note the assistance being given by the State to tenants renting private property, which is the subject of a later question.

Could the Minister be brief?

He is giving good information.

Even the Minister of State, Deputy Wallace, is falling asleep.

Let us hear the Minister of State without interruption.

The payment of rent supplements under the SWA scheme has increased rapidly in recent years.

Those who are working do not get any assistance.

It has increased from £8.6 million in 1990 to £54.7 million in 1995, to £75.3 million in 1997 and to £87.9 million in 1998. The average monthly number of rent supplemention cases has increased from 28,800 in 1994 to 36,800 in 1997 and to 40,000 in 1998. It is important to give a balanced picture. The State is providing substantial assistance to 40,000 tenants.

I gave my views about the need to achieve greater security of tenure and the steps I took to advance that. I mentioned the request made to the Attorney General, which is under consideration and to which I hope to get a response. Serious consideration is being given to this matter. This might be an area of work for a future commission.

Legislation is what is required, not another commission.

There is no point in introducing legislation unless we can ensure that it will stand up. Rent controls were introduced during the First World War and it took 70 years to remove them.

They were more enlightened about the rental sector than the Minister of State.

The property that was let fell into disrepair. We do not want that to happen again or to create new ghettos or derelict flat complexes.

I was disappointed the Minister used the word "claims" when he referred to Threshold's statement on the increase in the number of tenants who have been evicted.

That word was used in the question.

That statement is factual and I am sure many Members could confirm those statistics.

That word was used by Deputy Michael Higgins who tabled the question. He is precise in the language he uses.

Does the Minister of State consider it fair that a tenant's rent can be increased from £400 to £800 without being given prior notice? That is happening. Rents are being doubled. The Minister of State announced the introduction of a new scheme yesterday to enable a single person earning less than £20,000 a year or a couple earning less than £50,000 to purchase their own home. Many tenants in Dublin city are committed to paying £400, £500 or up to £800 per month in rent. That new scheme will not help those tenants. They need security of tenure and to know that their landlords cannot double their rents overnight.

The Deputy must not have heard what I said. I do not consider that is fair and I am seeking to try to have something done about it. I indicated that to the House.

Mr. Hayes

What action is the Minister taking?

Legislation is required.

Well thought out legislation is required.

When will it be introduced?

Deputy Dukes, allow the Minister to continue without interruption.

I do not support that level of increase in rents by landlords and I am as concerned as the Deputy about it, as are my Government colleagues.

Mr. Hayes

I take the Minister of State at his word when he said he wanted to do something to address the problem in the private rented sector. Why is it the case that his Department's recent bulletin states that the number of landlords registered with the local authorities has fallen? More than 75 per cent of landlords have yet to register with a local authority and this is prescribed by law. I brought that to the attention of the Minister of State one year and a half ago.

A question please, Deputy, as I wish to facilitate Deputy Dukes to ask a question.

Mr. Hayes

What action does the Minister of State intend to take to increase landlord registration, given that this problem was brought to his attention a year and a half ago and he stated he wants to do something to address it. We are still waiting for him to do that.

I am glad the Deputy acknowledged this problem existed more than a year and a half ago. I inherited it.

Mr. Hayes

What action has the Minister taken to address it?

The Deputy and his party colleague, who is sitting beside him, know that a case on this issue has been brought to court. This matter is affected by that court case.

Mr. Hayes

The Government can challenge it.

We are challenging it and the State is represented.

Regarding the action I have taken, I issued a circular some weeks ago to all the county managers asking them to continue their efforts to register properties in their areas. This scheme was established in such a way that it must be operated by the local authorities through the county managers. I pointed out to them the low level of landlord registration and urged them to be more active in implementing the law.

Mr. Hayes

Will the Minister review the law?

A Bill is under consideration, but we cannot proceed with it until this case is resolved. That court case is overhanging this matter.

Mr. Hayes

The Government can change the law.

Deputy Hayes, allow the Minister of State to continue.

I asked the local authorities to be more proactive in registering properties. The position is similar to that which pertained under the previous Government. I am in the hands of the courts in regard to advancing the case put forward by the property owners.

At some point during one of the Minister of State's many lengthy disquisitions earlier, he mentioned the provisions of section 23 and their possible usefulness in helping to increase the supply of private rented accommodation. Is he now signalling a change of policy in regard to the announcement that was made on the latest urban renewal programmes?

He will remember that, contrary to our expectations, the latest urban renewal scheme is confined to residential development in the designated areas. Am I right in recalling that in the announcement of that scheme it was stated that section 23 or section 27 measures would be available on a very limited basis and only in cases where they were essential to the achievement of the objectives of the IAP? Can I take it from what the Minister of State said a few minutes ago that he is taking a different view and that a more liberal application of these incentives can be expected?

The Minister of State mentioned the Threshold conference which he very kindly opened. Is he aware that at that conference I asked a panel of experts a very direct question about the constitutional impediments to rent control. To a person, they said there were no constitutional impediments and that the Madigan judgment was, as far as they were concerned, a one-off. Yet, we heard on the radio this morning another expert, to whom the Minister of State referred—

Deputy Gormley must ask a question.

—and for whom he seems to have a great deal of respect, claim that there are constitutional—

Deputy Gormley must ask a question.

Whom are we supposed to believe? Are there constitutional impediments or not? Does the Minister of State accept that this crisis requires urgent attention? There are rural Deputies in the Chamber and the Minister of State represents a rural area. However, does he not accept that in areas in my constituency of Dublin South-East – Rathmines, Ranelagh, Donnybrook and Ballsbridge – there is a real crisis and that people are being turfed out by unscrupulous landlords? What does he intend to do about it? When will he react to this crisis?

Mr. Hayes

He will send a letter to the county managers.

A circular letter.

Will the Minister of State ask the Government to transfer to him responsibility for landlord and tenant law? While I do not have a great deal of confidence in the Minister's handling of the housing crisis, I have even less confidence—

The Deputy must ask a question as I would like to give the Minister of State time to reply.

—in the Minister for Justice, Equality and Law Reform to bring forward amending legislation in the area of landlord and tenant law. Will the Minister of State consider asking the Government to transfer responsibility for landlord and tenant law to him since it is, essentially, a matter of housing policy and, given the indication he has given to the House today that he agrees well thought out legislation, as he put it, is required to deal with the increase in rents, the lack of security for tenants and the appalling situation they face?

I will pass on Deputy Gilmore's views. In regard to the question raised by Deputy Dukes on section 23 and the IAPs, if the Deputy looks carefully at the areas that have been sanctioned he will see that section 23 investor tax concessions have been made available for some areas and owner occupier section 23 tax incentives have been provided for residential development in other areas. It is expected that there might be a response to the investor incentives in the areas in which they have been sanctioned and that rental accommodation might be provided. I also announced on that occasion—

What proportion are they of the total?

Deputy Dukes must allow the Minister of State to reply.

There was zoning for investors in certain urban areas to achieve the objectives of the local authority. There was a large number in the Dublin region in large areas of social housing in order to achieve a better mix by bringing some private housing into the area. That was to achieve a socio-economic objective.

On the same occasion that I announced the IAPs, I stated that the Government had decided that a new scheme should be drawn up for smaller towns. The guidelines will be prepared by the same committee of experts and will be issued to the local authorities in April, it is hoped. Those who wish to respond will be invited to submit applications for smaller towns for tax incentives which could include residential investors to achieve certain objectives, or residential owner occupiers to achieve other social objectives or settlement policies. These options are there.

The Deputy asked if there will be a more liberal approach. The only reason I am responding about the smaller towns is that there are additional numbers of areas that may be designated for investor incentives under section 23.

Deputy Gormley mentioned the Madigan ruling. Paddy Madigan is an old university colleague of mine. He said that people informed him at the conference that there are no constitutional difficulties. I met these people and I am aware of that opinion. However, it is an issue that has to be resolved in the Irish context. It is an important housing issue that needs to be quickly addressed. I have already said in reply to an earlier question that I consider this type of matter to be probably a suitable subject for the work of a special committee that would focus directly on it and clear it up once and for all.

I must emphasise, in reply to Deputy Gilmore, that I am not a Cabinet Minister per se– I am a junior Minister who attends Cabinet meetings. My responsibilities in the Department of the Environment and Local Government are in the housing area. The Minister for Justice, Equality and Law Reform is responsible for landlord and tenant legislation.

Mr. Hayes

That is the problem.

We will work on this together as we have collective responsibility.

Written Answers follow Adjournment Debate.

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