Dáil Éireann Debate, Wednesday - 18 November 2015
29. Deputy Richard Boyd Barrett asked the Minister for Finance his role and input in the recent discussions around controls, regulations and new initiatives in the rental and housing market; and if he will make a statement on the matter. [40379/15]
View answerOn Tuesday 10 November last, Minister Kelly and I announced the Rent Certainty and Housing Supply package. The policies that we announced were the culmination of analysis on the part of our two Departments as well as other Departments, including the Department of Public Expenditure and Reform. The time taken in formulating the package reflects the complexity of the issues affecting the housing market and importance of developing effective policy interventions.
The package includes a number of targeted and time-bound initiatives that seek to overcome some of the bottlenecks that are inhibiting housing supply. Given the pressing need to tackle these problems, the set of measures included in the package will be in place by January 2016.
In terms of specific actions intended to increase housing supply, the package includes:
- A targeted rebate of development contributions for housing supplied under certain price levels in Dublin and Cork;
- An agreement by the Irish Strategic Investment Fund (ISIF) to examine funding for housing infrastructure on a case-by-case basis;
- The introduction of New National Apartment Planning Guidelines which should reduce the cost of apartment buildings in Dublin by around €20,000 per unit; and
- A review of the operation of Strategic Development Zones to enable swifter adjustments that meet market requirements.
To address the issue of rent stability, rent reviews will be extended from 12 months to 24 months for a period of 4 years. In developing these proposals, officials were cognisant of the international evidence on the effects of rent controls and their potential impact on investment. In this regard, the measure as set out ensures rents continue to be set by the market but will also provide a degree of rent stability for tenants in the short term as the market returns to equilibrium and housing supply increases.
Another important measure contained in the package is the increase in the deduction available to landlords for mortgage interest repayments from 75% to 100% where they let to tenants in receipt of rent supplement or social housing assistance payments.
This package complements those actions seeking to improve the housing market that have been implemented through Construction 2020 and the Social Housing Strategy, as well as the recent announcement by NAMA to target the delivery of 20,000 additional residential units before the end of 2020.
