Dáil Éireann Debate, Wednesday - 14 January 2015
891. Deputy Finian McGrath asked the Minister for the Environment, Community and Local Government his views on correspondence (details supplied) regarding renting; if the National Asset Management Agency is currently in the housing rental sector; and if he will make a statement on the matter. [49639/14]
View answerThe Residential Tenancies Act 2004 regulates the landlord-tenant relationship in the private rented sector and sets out the rights and obligations of landlords and tenants relating to, inter alia, security of tenure, termination of tenancies, rent and rent reviews. The 2004 Act provides that rents may not be greater than the open market rate and may only be reviewed upward or downward once a year unless there has been a substantial change in the nature of the accommodation that warrants a review. Tenants must be given 28 days’ notice of new rent and can make an application for dispute resolution to the Private Residential Tenancies Board (PRTB) where they feel the rent increase is in excess of the market rent. These provisions have effect notwithstanding any provision to the contrary in a lease or tenancy agreement.
I am very conscious of the difficulties caused by rising rents. In the third quarter of 2014, rents were 5.6% higher nationally than in the same quarter of 2013, according to the most recent rent index from the PRTB. Rents for houses were 4.3% higher in the third quarter of 2014, while apartment rents were 7.3% higher than in the same quarter of 2013. In Dublin, which is seeing the highest rates of increase nationally, overall rents were higher by 9.5%.
Ultimately, the main cause of rising rents is a lack of supply in the market and the recently published Social Housing Strategy 2020 sets out clear, measurable actions and targets to increase the supply of social housing, reform delivery arrangements and meet the housing needs of all households on the housing list. In addition, the implementation of the range of actions under the Government’s Construction 2020 Strategy will support increased supply in the wider housing market.
A recent poll for the PRTB found that only 64% of tenants were aware of their rights under the Residential Tenancies Act 2004. The PRTB is developing a new communications strategy, which will include increasing awareness of existing rights and obligations under the legislation and will be rolled out early this year.
I have no function in relation to the operations of the National Asset Management Agency (NAMA) in the private rental market. Responsibility for NAMA rests with my colleague, the Minister for Finance.
