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Rent Pressure Zones

Dáil Éireann Debate, Tuesday - 12 June 2018

Tuesday, 12 June 2018

Questions (1293)

Pat Casey

Question:

1293. Deputy Pat Casey asked the Minister for Housing, Planning and Local Government the status of the criteria for the extension of the rental pressure zones to other areas of the country in view of the increases that continue to take place in counties such as County Wicklow; and if he will make a statement on the matter. [24697/18]

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Written answers

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:

(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 (€1,054 per month in Q4 2017).

The Residential Tenancies Board’s latest quarterly Rent Index Report for Q4 2017, which was published in March 2018, shows reductions in the rate of rental inflation across both national and Dublin rents. The slowdown in the quarterly growth rate in Dublin rents to 1.1% in Q4 2017 is particularly noteworthy, bringing the annualised growth rate over 2017 to 5.2%, a drop from 8% in the year to Q3 2017. Significantly, this 5.2% increase for Dublin is the lowest annual growth rate since 2013. This latest quarterly index provides evidence that the introduction of the RPZs, in December 2016, is having a positive effect on rent inflation, particularly in Dublin.

The RTB Rent Index Report also 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 everyone to see exactly where their area stands in relation to average rent levels and increases and possible designation.

For the purpose of the Act, ‘area’ is defined as either the administrative area of a housing authority or a local electoral area within the meaning of section 2 of the Local Government Act 2001. There is no provision for any other type of area to be designated as a Rent Pressure Zone.

There are 5 local electoral areas in County Wicklow - Baltinglass, Bray, Greystones, Wicklow and Arklow. Three of these - Bray, Greystones and Wicklow - have been designated as Rent Pressure Zones.

The Housing Agency continues 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.

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