Dáil Éireann Debate, Thursday - 6 May 2021
79. Deputy Mick Barry asked the Minister for Housing, Local Government and Heritage the measures he will take to prevent landlords and estate agents using incentivised rates such as offering short term discounts in order to avoid rent control measures; and if he will make a statement on the matter. [23530/21]
View answerThe Planning and Development and Residential Tenancies (Amendment) Act 2016 introduced the Rent Predictability Measure to moderate rent increases in those parts of the country where rents are highest and rising fastest, resulting in great difficulty for households finding affordable accommodation. In these areas, called Rent Pressure Zones (RPZ), rents can only increase by a maximum of 4% per annum. The annual rent increase restriction applies to both new and existing tenancies, irrespective of a change of landlord.
Not all properties in RPZs are subject to the 4% restriction.
An exemption applies to the first rent setting of a tenancy of a dwelling where:
- no tenancy existed in respect of the dwelling during the two years immediately prior to this current tenancy beginning;
or
- no tenancy existed in respect of the dwelling where the dwelling is a protected structure, or is in a protected structure or is a proposed protected structure during the 12 months immediately prior to the current tenancy beginning. A protected structure is defined in the Planning and Development Act 2000.
The Residential Tenancies (Amendment) Act 2019 Act provides a legal definition of ‘substantial change in the nature of rental accommodation’ to illustrate the type of works to be carried out to a rental property to qualify for an exemption from the annual rent increase restriction applicable in Rent Pressure Zones (RPZs).
Such works shall result in:
- a permanent extension increasing the floor area by 25%; or
- an improvement in the Building Energy Rating (BER) by at least 7 ratings; or
- at least 3 of the following:
- a permanent alteration of the internal layout;
- adaptations for a person with a disability;
- a permanent increase in the number of rooms;
- an improvement in the BER by 3 or more ratings where the original BER was D1 or lower; or
- an improvement in the BER by 2 or more ratings where the original BER was C3 or higher.
The Residential Tenancies Acts 2004 to 2021 do not stipulate a maximum or minimum rent amount to be charged in an area and places no obligation on a landlord to charge a rent. Section 19 of the Acts prohibits the setting of a rent that exceeds the prevailing market rent. There is no legal obstacle to landlords reducing rents in an RPZ or elsewhere in the country.
During the pandemic, landlords are being urged to show forbearance to tenants with regard to the levels of rent payable and any arrangements that might be made should rent arrears arise. It is open to the parties to agree informal temporary rental arrangements during the pandemic and this does not contravene RPZ legislation. Such arrangements are viewed as a pragmatic response to the temporary impacts of Covid-19, lowering rents for tenants when most needed.
In order to better enforce RPZ legislation, the Residential Tenancies (Amendment) Act 2019 provided the Residential Tenancies Board (RTB) with enhanced powers and resources to carry out investigations and to sanction landlords if required, for any contravention of the 4% rent increase restriction in RPZs. The maximum sanction is €30,000. Alternatively, a tenant may wish to refer a dispute for resolution to the RTB and a lawful rent can be enforced and damages of up to €20,000 can be awarded.
My Department, the Housing Agency and the RTB keep the operation of the rental market under review. It is important to have rent transparency and a rental system with fair rent and certainty for tenants. I intend to bring forward comprehensive rental legislation in the Autumn with provisions to address long term security of tenure, rent levels and the impact of on-line platforms taking units out of the rental market. The matter raised will be examined in the context of that legislation.
