Oireachtas Joint and Select Committees

Wednesday, 10 June 2015

Joint Oireachtas Committee on Education and Social Protection

Rent Supplement: Discussion

1:00 pm

Photo of Brendan  RyanBrendan Ryan (Dublin North, Labour) | Oireachtas source

Until about 12 months ago, I was beating the drum for a review of the caps on rent supplement and calling for an increase in the caps. As a practitioner in my local area, I could see all sorts of pressures on the rent supplement caps. In recent times, however, the most pressing issue has been finding accommodation, in other words, it is a problem of housing supply rather than caps on rent supplement. I spent yesterday afternoon with a client who will be made homeless this weekend because the landlord is taking back the house. I would be delighted if caps on rent supplement were the only problem. I telephoned three letting agents yesterday, none of which had a single place available. Estate agents inform me that they are fortunate if one property becomes available for letting each month. They would be out of business if it were not for the increase in property sales. Clearly, an increase in the caps on rent supplement would not work as it would not solve the problem for a family that is made homeless next Monday.

Rent certainty or rent control - call it what one will - is very important. The Minister indicated he will soon introduce measures in this area. While I accept that legislation is also required to address the problem of landlords refusing rent supplement, outlawing this practice will not prevent it from happening.

The most serious problem is the supply of homes. One can increase rent caps to whatever level one wishes but it will not solve the problem given the absence of houses. This is the biggest and most frustrating issue I encounter. It is shocking to deal with families who are facing the prospect of homelessness within one week. Trying to deal with these issues is the most deflating aspect of the work I do.

I am contacted constantly by people asking where they are on the housing list. They are frustrated by the lack of council homes. While social housing will come on stream as a result of recent announcements by the Government, it will be between 18 months and two years before homes are handed over to tenants. I do not know what are the views of the representatives of the Peter McVerry Trust and Focus Ireland on this matter. The crisis will continue until supply increases in 12 to 18 months.

This is a multifaceted problem for which there is no simple solution. Identifying measures that will help to manage the transition from a lack of supply to supply is the greatest challenge for all of us. No one, either a politician or someone else, can say he or she has a solution or that increasing rent caps will solve the problem. The issue is more serious than that.

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