Richard Boyd Barrett
Question:152. Deputy Richard Boyd Barrett asked the Minister for Housing, Local Government and Heritage what actions he intends to take to reduce rents; and if he will make a statement on the matter. [23567/23]
View answerThursday, 18 May 2023
Questions (152)
Written answers
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 designation of all existing RPZs has also been extended until 31 December 2024. The Act 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 regard to affordability of rent by prohibiting any necessary rent increase in an 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 , 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 2004-2022 prohibits the setting of a rent that exceeds market rent.
The Government’s Housing for All plan is focused on tackling supply and affordability issues in the rental market. The plan contains targets, actions and guaranteed State investment of over €4 billion a year in housing aimed at increasing supply, which in turn will help increase access to affordable rental housing. Budget 2023 allocates €4.5 billion of funding to continue the vital work in progress under Housing for All and supports extra supply coming on stream.
Question No. 153 answered with Question No. 102.