Dáil Éireann Debate, Thursday - 22 October 2015
350. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government the protections tenants will have in the face of ever-increasing private rents that are now on par with the high rents charged in 2007; the impact this has on jobs; his plans to introduce intermediate control measures; and if he will make a statement on the matter. [37136/15]
View answerTenants in the private rented sector have rights and protections under the Residential Tenancies Act 2004. The 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.
A shortage of supply is at the heart of rising rents and the Government is addressing this on a number of fronts. Construction 2020: A Strategy for a Renewed Construction Sector, published last year, is aimed at addressing issues in the property and construction sectors and ensuring that any bottlenecks that might impede the sector in meeting residential and non-residential demand are addressed. Social housing is a key priority for the Government, as evidenced by the Social Housing Strategy 2020 and the €2.9 billion committed to its implementation under the Government’s Capital Plan. In Budget 2016 investment in housing infrastructure has again been given priority with a total housing provision of €923 million for next year.
The National Competitiveness Council in its report Costs of Doing Business in Ireland 2015 identified the potential consequences for affordability and knock-on impacts on wage demands, of increasing house prices and rents. Ultimately, the key to addressing this is through increasing the supply of housing, which is a core focus of the Government’s Construction 2020 strategy. In 2014 the number of house completions was 11,016 units nationally, an increase of 33% on the 2013 figure. The latest figures for new house completions show that 8,914 units were completed to the end of September 2015, up 14% on the corresponding figure for 2014.
NAMA is aiming to deliver a target of 20,000 residential units before the end of 2020, with 90% of these units to be in the greater Dublin area. Achieving this new target by the end of 2020 means delivering, on average, 80 new housing units every week across some 100 active sites.
In addition to these measures, I am continuing to work on proposals to address the issue of rising rents. The regulation of rent raises many complex economic and legal issues and I have to be satisfied that any measures proposed are balanced and have the desired effect on the rental market while being fair to landlords and tenants alike. Ultimately, any decision in relation to this issue is a matter for Government and it is my intention to bring final proposals to Government for decision as soon as possible.
