Dáil Éireann Debate, Tuesday - 25 January 2022
330. Deputy Sorca Clarke asked the Minister for Housing, Local Government and Heritage the measures being considered by his Department to assist renters in the current housing crisis; and if he will make a statement on the matter. [3582/22]
View answerThe most effective way to assist renters in the medium to long term is to increase supply and accelerate delivery of housing for the private and social rental sectors.
Housing for All – a New Housing Plan for Ireland sets out the Government’s plan to increase the supply of housing to an average of 33,000 per year over the next decade. One of the ways the Government are trying to increase the supply of more affordable homes to rent under Housing for All is through the introduction of a new Cost Rental sector, the legislative framework for which was set out in the Affordable Housing Act last year. It is a long-term rental model, in which tenants only pay the cost of providing, managing and maintaining their homes.
We are committed to growing this sector, and through Approved Housing Bodies, Local Authorities, and the Land Development Agency under Project Tosaigh, approximately 1,500 Cost Rental homes are targeted for completion and tenanting this year alone. Overall, some 18,000 Cost Rental homes are targeted for completion under Housing for All to 2030.
The Residential Tenancies (No. 2) Act 2021 introduced measures in July 2021 to extend the operation of Rent Pressure Zones (RPZs) until the end of 2024. The Act also provides that rent reviews outside of RPZs can, until 2025, occur no more frequently than bi-annually. This provides rent certainty for tenants outside of RPZs for a minimum 2 year period at a time.
The Act also introduced measures to better protect tenants with affordability challenges by prohibiting any necessary rent increase in a RPZ from exceeding general inflation, as recorded by the Harmonised Index of Consumer Prices (HICP).
To address the rent affordability challenges building on foot of the unexpectedly fast rising inflation rate, as recorded by HICP (CSO data for December 2021 shows HICP inflation of 5.7% p.a.), the Residential Tenancies (Amendment) Act 2021 provides, from 11 December 2021, a cap of 2% per annum pro rata on rent increases in RPZs, where the inflation rate is higher. In effect, this will mean that rents in RPZs may only increase by a maximum of 2% per annum pro rata during times of higher inflation.
In all cases, section 19(1) of the Residential Tenancies Acts 2004-2021 prohibits the setting of a rent that exceeds market rent.
In accordance with both the Programme for Government and Housing for All commitments, the Government has provided for Tenancies of Unlimited Duration through the Act.
All new tenancies created on or after 11 June 2022 will become tenancies of unlimited duration after 6 consecutive months in occupation under the tenancy, without a valid notice of termination having been served.
