Tuesday, 26 March 2019

Questions (1423)

Noel Grealish

Question:

1423. Deputy Noel Grealish asked the Minister for Housing, Planning and Local Government if landlords providing properties under the RAS scheme to local authorities were given rent increases in excess of the 4% allowed in rent pressure zones since the 4% cap was introduced; the number of landlords that were offered more than the 4% increase in rent but this offer was subsequently withdrawn by the local authority, respectively; and if he will make a statement on the matter. [13827/19]

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Written answers (Question to Housing)

The Government’s Strategy for the Rental Sector recognises that rapidly increasing rental inflation is the most significant challenge to security of tenure in the rental sector and that there is a need for a targeted, time-bound and transparent policy response to the issue of rising rents. To address this, the Government introduced the Rent Predictability Measure. This measure, which was provided for through the Planning and Development (Housing) and Residential Tenancies Act 2016, introduced the concept of Rent Pressure Zones (RPZs) to moderate the rate of rent increases in those areas of the country where rents are highest and rising quickly.

Where the local authority in a designated RPZ wishes to offer a new RAS contract, RPZ limits must be observed in any contract negotiations. This means that rent increases are capped at a maximum of 4% per annum for up to three years. Rent reviews in respect of dwellings made available for social housing under the Rental Accommodation Scheme (RAS) and located in RPZs must be undertaken in compliance with the governing RPZ legislation. It is a matter for each local authority, as the lessee in RAS contracts, to ensure compliance with the RPZ legislation in respect of RAS dwellings.