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Rental Sector

Dáil Éireann Debate, Tuesday - 3 November 2020

Tuesday, 3 November 2020

Questions (615, 616)

Neale Richmond

Question:

615. Deputy Neale Richmond asked the Minister for Housing, Local Government and Heritage the measures he has taken and plans to take to encourage landlords to list their vacant apartments on the rental market at a fair and reasonable price; and if he will make a statement on the matter. [33049/20]

View answer

Neale Richmond

Question:

616. Deputy Neale Richmond asked the Minister for Housing, Local Government and Heritage the measures that have been taken to encourage landlords to show leniency to tenants regarding payment breaks or lower rents during the Covid-19 crisis; and if he will make a statement on the matter. [33050/20]

View answer

Written answers

I propose to take Questions Nos. 615 and 616 together.

Section 24 of the Residential Tenancies Act 2004-2020 defines market rent for the purposes of rent setting and rent review to mean, in relation to the tenancy of a dwelling, the rent which a willing tenant not already in occupation would give and a willing landlord would take for the dwelling, in each case on the basis of vacant possession being given and having regard to the other terms of the tenancy and the letting values of dwellings of a similar size, type and character to the dwelling and situated in a comparable area to that in which it is situated. Section 19 of those Acts provides that in setting a rent under a tenancy of a dwelling, the rental amount shall not exceed market rent. In a Rent Pressure Zone, a rent increase restriction of 4% per annum applies.

My Department and the Residential Tenancies Board (RTB) urge landlords to consider the negative impacts of Covid-19 on their tenants and to show forbearance where temporary rent arrears might arise. Tenants and landlords are urged to discuss any problems promptly, keep lines of communication open and respect each other’s positions. If the problem cannot be resolved, registered landlords and all tenants can apply to the RTB for dispute resolution. Further information is available on www.rtb.ie.

The Residential Tenancies Act 2020 was enacted and came into operation on 24 October 2020 to help mitigate the impact of Covid-19 on tenants and to support the efforts of Government in restricting the movement of people in order to suppress the spread of Covid 19. The Act modifies the operation of the Residential Tenancies Acts 2004-2020 to prevent any notices of termination served by landlords, in all but limited cases such as anti-social behaviour, from taking effect in geographical locations and during periods specified by the Minister for Health in Regulations made by him under section 31A of the Health Act 1947 in respect of which a restriction applies on the movement of people outside a 5 km radius of their place of residence.

This Act operates in parallel with the Residential Tenancies and Valuation Act 2020 which came into effect from 1 August 2020 to provide enhanced protections for those tenants who are facing rent arrears due to Covid-19 and, as a result, are at risk of losing their tenancy.

If a tenant’s ability to pay rent has been impacted by Covid-19 and the tenant meets specific criteria, new procedures and protections apply under the Residential Tenancies and Valuation Act 2020. Tenants who follow these procedures cannot be required to vacate their rental accommodation before 11 January 2021, and are not required to pay any rent increase in respect of the period ending 10 January 2021.

Tenants who are currently (or at any stage between 9 March 2020 and 10 January 2021): in receipt of (or entitled to receive) Illness Benefit for Covid-19 absence - further information available at - https://www.gov.ie/en/service/df55ae-how-to-apply-for-illness-benefit-for-covid-19-absences/ ); or in receipt of (or entitled to receive) the Temporary Wage Subsidy, Employment Wage Subsidy or any other social welfare payment or State support paid as a result of loss of earnings due to Covid-19 (this includes the rent supplement or a supplementary welfare allowance); and at risk of losing their tenancy, can receive the aforementioned protections to remain in their tenancy without any increase in rent until 11 January 2021.

In order to qualify for these supports, tenants must complete and sign a Self-Declaration form, available on the RTB website www.rtb.ie, if they meet the above criteria and submit it to the RTB and their landlord.

The RTB and the Money Advice and Budgeting Service (MABS) are working with tenants in rent arrears to outline the financial supports which may be available to enable the tenant to meet their rental obligations to sustain their tenancy.

The Residential Tenancies and Valuation Act 2020 provides for permanent enhancements to tenancy protections that require a landlord to copy the RTB with any written rent arrears warning notice given to a tenant seeking the payment of all rent arrears within 28 days. The RTB will acknowledge receipt to the landlord and tenant and provide the tenant with written information to enable them to get advice from the Money Advice and Budgeting Service (MABS) and on the income and other supports available. If the tenant agrees, the RTB can help them to engage with MABS to resolve their rent arrears and sustain their tenancy.

My Department has published a guidance document, the Residential Tenancies and Valuation Act 2020: What this Means for Landlords and Tenants, which sets out exactly what is expected as the rental protections under the Emergency Measures in the Public Interest (Covid-19) Act 2020 expire, and provides details on the new protections for tenants in rent arrears and the income and other supports available to tenants and landlords.

This guidance document clearly explains the new rent arrears procedure for both landlords and tenants facing rent arrears. The Guidance document is available on the Department's website www.housing.gov.ie and on the RTB's website www.rtb.ie.

The RTB has engaged with stakeholders with regard to the recent tenancy protection enhancements and launched advertising campaigns, including on social media, informing the public and directing people to its website for more information. The advertising campaigns ran from 15 April until to 1 August 2020 and the final phase of a related mail-shot to tenants and landlords concluded last week.

Many Government Departments, agencies and organisations are engaged in supporting landlords and tenants during this time, providing information, advice and income supports to those who are facing financial difficulty. Tenants facing difficulty in meeting the rental payments should engage with the Department of Social Protection (D/SP) as income supports such as Rent Supplement and Social Welfare Allowances are available to assist them. Further information on these supports can be found by calling the D/SP Income Support Helpline for Covid-19 on 1890 800 024 or by visiting the D/SP website at: https://www.gov.ie/en/organisation/department-of-social-protection/

With Government funding, Threshold, the national housing charity, operates the Tenancy Protection Service. Further information is available on www.threshold.ie. The homeless and housing sections in local authorities continue to assist those who are not in a position to provide accommodation for themselves.

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