Dáil Éireann Debate, Tuesday - 15 January 2019
1140. Deputy James Browne asked the Minister for Housing, Planning and Local Government the position regarding persons struggling to lease properties at a low price while also paying tax within the higher bracket; and if he will make a statement on the matter. [54523/18]
View answerThere are upward pressures on the private rental market, due to our strong economic and demographic growth and the restricted supply available. However, the range of wider policies to increase supply, such as providing more flexible planning standards as well as improving supports and services for the rented sector, will help to increase the number and types of properties available for rent, particularly in city centre areas.
The solution to the acute pressures are supply related - increasing the supply of houses/apartments for sale and rent will in turn reduce the pressure on rents and provide a wider choice for our citizens.
While the supply side actions are beginning to bear fruit, the Government’s intervention in the rental market have been positive in moderating the rate of increase of rents through Rent Pressure Zones (RPZs) and in providing more security of tenure for tenants. Rent Pressure Zones are designated Local Electoral Areas or administrative areas of local authorities in which rent increases are restricted to a maximum of 4% per annum.
Section 24A of the Residential Tenancies Act 2004, as amended, 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 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.
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 inserted 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 RTB Rent Index Report includes a summary in Table 9 of the data used to establish whether each Local Electoral Area fulfils the criteria for designation as a Rent Pressure Zone. This ensures transparency in relation to the position of individual areas in terms of average rent levels and increases.
Further information on Rent Pressure Zones and designations is available on my Department's website at: https://www.housing.gov.ie/PUBLICATIONS, by searching 'rent pressure zones - information'.
On 11 December 2018, the Government gave its approval to publish the Residential Tenancies (Amendment) (No. 2) Bill 2018, which includes powers for the RTB to investigate and sanction landlords who engage in improper conduct such as non-compliance with the rent increase restriction in Rent Pressure Zones. The Bill will make it a criminal offence for landlords to, inter alia, implement rent increases that contravene the law or fail to cooperate with an investigation or to register and update tenancies with the RTB. It will allow the RTB to initiate an investigation without the need for a complaint to be made.
These key measures and reforms are designed to enhance enforcement powers for the RTB, provide greater security of tenure for tenants and further underpin the operation of the RPZ arrangements, and will not only protect those who are renting but will also deliver greater stability and transparency to the rental sector.
The issue of taxation is a matter for my colleague, the Minister for Finance.
