Dáil Éireann Debate, Wednesday - 5 July 2017
261. Deputy Sean Fleming asked the Minister for Housing, Planning, Community and Local Government his views on whether the Portlaoise area should be included in the rent pressure zones; the position regarding same; and if he will make a statement on the matter. [31716/17]
View answerThe Planning and Development (Housing) and Residential Tenancies Act 2016 sets out the process through which Rent Pressure Zones can be designated. It provides that the Housing Agency, in consultation with housing authorities, may make a proposal to the Minister that an area should be considered as a Rent Pressure Zone. Following receipt of such a proposal, the Minister requests the Director of the Residential Tenancies Board (RTB) to conduct an assessment of the area to establish whether or not it meets the criteria for designation and to report to the Minister on whether the area should be designated as a Rent Pressure Zone.
For an area to be designated a Rent Pressure Zone, it must satisfy the following criteria set out in section 24A(4) of the Residential Tenancies Act 2004 (as amended by section 36 of the Planning and Development (Housing) and Residential Tenancies Act 2016):
(i) The annual rate of rent inflation in the area must have been 7% or more in four of the last six quarters; and
(ii) The average rent for tenancies registered in the area with the RTB in the last quarter must be above the average national rent (the National Standardised Rent in the RTB’s Rent Index Report) in the last quarter (€987 per month).
On 15 June, the RTB published the Rent Index Report in relation to Quarter 1 2017, which includes a summary of the data used as the criteria for designating Rent Pressure Zones in relation to all Local Electoral Areas in the country. This allows all interested parties to see exactly where their area stands in relation to average rent levels and increases and possible designation. The data from the Rent Index Report relating to Portlaoise is detailed in the following table:
|
Local Electoral Area |
Quarters > 7% |
Average 2017 Q1 (€) |
|
Portlaoise |
4 |
733.78 |
The data indicates that the Local Electoral Area of Portlaoise does not meet the criteria for designation at this time.
Under the Act, I have no further role or discretion in proposing areas for designation as Rent Pressure Zones or in deciding whether they should be designated. The designation process is independent and based on clear objective criteria and quantifiable evidence.
The Housing Agency will continue to monitor the rental market and may recommend further areas for designation. Where, following the procedures set out in the Act, it is found at a future date that additional areas meet the criteria, they will be designated as Rent Pressure Zones.
My Department has initiated a review of the Rent Predictability Measure. At this stage, the measure has been in place for 6 months and data from the Residential Tenancies Board’s Rent Index Report for Quarter 1 2017 is also available. Using this latest data, it will be possible to ascertain the effectiveness of the Rent Predictability Measure and whether any changes need to be made.
On 15 June, my Department launched a public consultation on the review of the Rent Predictability Measure and the system of Rent Pressure Zones introduced last December. The consultation allowed members of the public and interested parties to provide their opinions and suggestions on the functioning of the measure. The submissions received from the consultation process, which concluded last Friday (30 June), will feed into the review of the measure.
