Vol. 522 No. 4
34 Mr. J. O'Keeffe asked the Minister for the Environment and Local Government the average increase in rents of private houses, apartments and flats over the past three years; if he expects this to continue; and if he has any proposals, by way of relief, for those affected. [18062/00]
Information on the level of rent increases is not directly available to my Department. However, in his recent report on the housing market in Ireland, Dr. Peter Bacon concluded that the rise in rents was generally in line with the rise in house prices, with a moderation in the rate of increase in recent months compared with the increases experienced in 1998. Realistically, the housing demand level has created pressure on both prices and rent and, as I have said many times, the only long-term solution to this problem is to balance supply and demand. In this regard, the Government in its policy document Action on Housing recently announced a range of measures which are being taken to address housing requirements, including the maximisation of housing supply, curbing short-term speculative demand assisting first time purchasers and increased capacity in the construction sector. These measures will help us achieve a balance between supply and demand in the housing market and will have a consequential impact on both house prices and rents.
In addition to the recently announced measures, the Government has also taken a number of other relevant actions in recent years. These include the integrated area plans, section 23 tax provisions, urban renewal schemes and incentives for the provision of student accommodation. In the area of tax relief in respect of rent, this Government increased the ceiling for persons renting who were under 55 years of age by 50% and doubled the ceiling in respect for those over 55 years of age.
The Deputy will also be aware that last July I established the commission on the private rented sector. The commission is examining the working of the landlord and tenant relationship in respect of the private rented sector and is mandated to make such recommendations, including changes to the law, as it considers proper, equitable and feasible with a view to, among other things, increasing investment in and the supply of residential accommodation for renting. Naturally, the aim is that any measures implemented as a result of the commission's recommendations will have a positive outcome for the sector and will contribute to achieving a thriving, more diverse and well managed private rented sector. The commission is due to report to me shortly and I will promptly and positively examine any recommendations made.
