Éamon Ó Cuív
Question:195. Deputy Éamon Ó Cuív asked the Minister for Housing, Local Government and Heritage the steps being taken urgently to control rents (details supplied); and if he will make a statement on the matter. [47379/21]
View answerThursday, 30 September 2021
Questions (195)
Written answers
The Planning and Development (Housing) and Residential Tenancies Act 2016 introduced a targeted rent increase restriction of 4% per annum in Rent Pressure Zones (RPZs), having regard to the constitutionally protected property rights of landlords and local rental market factors. The aim was to provide rent certainty to tenants and landlords by moderating medium-term rent levels.
The Residential Tenancies (No. 2) Act 2021 introduced measures in July 2021 to better protect tenants with affordability challenges by extending the operation of RPZs until the end of 2024 and prohibiting any necessary rent increase in a RPZ from exceeding general inflation, as recorded by the Harmonised Index of Consumer Prices (HICP). This measure significantly reduced the level of permissible rent increases for the estimated 74% of all tenancies which are in RPZs.
When introducing these measures, I was very clear on the need to carefully monitor inflation. At that time, HICP inflation averaged 0.73% p.a. over the previous 3 years but had risen to 1.6% p.a. in the year ending June 2021. I needed to revise the RPZ rent control relatively quickly in July, on a basis that could be independently verified. The Residential Tenancies (No. 2) Act 2021 also provides that an index, other than HICP, may be prescribed for the purposes of restricting rent increases in RPZs. Given the continuing rise in HICP inflation, up to 3% p.a. in August, I intend to consider all the legal options available to me to ensure that effective rent controls are legally in force in RPZs to cap the rate of any rent increase where the general inflation rate is too high. I intend to bring forward the Housing and Residential Tenancies Bill 2021 before the end of this Dáil term and any necessary provision relating to rent control in RPZs will be considered in this context.
My Department is currently examining this matter and the advices of the Office of the Attorney General will inform any changes in this area.