Dáil Éireann Debate, Monday - 11 September 2017
1999. Deputy Fergus O'Dowd asked the Minister for Housing, Planning and Local Government further to a report (details supplied), if he will consider changing the methodology used to calculate rent pressure zones and remove meeting the national average rent as part of the formula; and if he will make a statement on the matter. [37573/17]
View answerThe Planning and Development (Housing) and Residential Tenancies Act 2016 amended the Residential Tenancies Act 2004 to provide 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 as 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 Indicative Rent in the RTB’s Rent Index Report) in the last quarter.
The Act provides that, in confirming whether or not the criteria have been met, the information relating to the area concerned must be determined by the information used to compile the RTB Rent Index quarterly report. This information is based on actual rents of tenancies registered with the RTB as opposed to the Daft.ie figures which reflect asking rents for advertised properties.
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 County Louth are detailed in the following table.
|
Local Electoral Area |
Quarters > 7% |
Average 2017 Q1 (€) |
|
Dundalk Carlingford |
6 |
728.49 |
|
Dundalk South |
4 |
926.81 |
|
Ardee |
5 |
793.81 |
|
Drogheda |
6 |
972.95 |
While in 4 of the last 6 quarters, rent inflation in Louth has been 7% or greater, the average monthly rent in these areas remains below the average national standardised rent of €987 per month. Therefore, the Local Electoral Areas in Louth do not meet the criteria for designation at this time.
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. All areas that meet the criteria have now been designated but the Housing Agency 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. I expect that the RTB Rent Index data for Quarter 2 of 2017 will be available later this month.
My Department is currently reviewing the Rent Predictability Measure. The provisions have been in place since December 2016 and it is now possible to ascertain their effectiveness and whether any changes need to be made to, for example, the qualifying criteria or the designation process. Where changes are recommended on foot of the review, they will be implemented as a matter of priority.
