Oireachtas Joint and Select Committees

Tuesday, 17 May 2016

Committee on Housing and Homelessness

Residential Tenancies Board

10:30 am

Ms Rosalind Carroll:

In terms of our overall compliance rates, it is quite difficult for us to determine where we are with them. As regards the absolute measure of the number of properties and tenancies, the only place one can find that is in the census. The 2011 census figures suggest that we had a compliance rate of approximately 85%. In 2013 we brought in some measures with the Department of Social Protection, and a new system for checking compliance and data matching with them. We believe our compliance rates would be significantly higher since then. That might address some of Deputy Coppinger's questions on some of the increases we would have seen. The number of landlords would have been specific to the 2013 year because of the increase in our overall compliance at that time. I hope my answer deals with that issue.

As regards student accommodation, we estimate that in the region of 11% of overall tenancies are held by students at the moment. That is based on the sample we did in the DKM survey in 2014, so I presume it has not changed that much. If anything, it will have dropped somewhat because of the supply issues. In terms of trying to deal with that, there is no tenancy created in that situation, so we can only deal with a dispute where there is a tenancy. If there is not a tenancy and there is an issue with standards, one can still make a referral to the local authority in respect of the standard of accommodation. However, we cannot deal with an issue until the tenancy exists.

Deputy Coppinger asked about the number of landlords registering and why the number of tenancies is increasing. We had a higher number increase in 2013 due to a compliance issue. What is happening is that the amount of people in the rental sector is increasing incrementally. The number of new tenancies created is stabilising because people are staying longer in their tenancies. Then there are new additions happening every year, so we do believe that it is increasing incrementally.

Deputy Coppinger asked whether social housing was the main driver for that. It is difficult for us to know. When we register a tenancy we do not register whether it is a rent supplement or HAP recipient, they are just tenants to us. We estimate that about 100,000 people in the rental sector are in some form of relief from the State, whether it is rent supplement or the housing assistance payment.

The number would have been about 60,000 in 2004 or 2005 so there has been a net increase of 40,000 during those years.

I was asked to refer to other countries and examples elsewhere of regulation within the rental sector and there are many examples in Germany and the Netherlands. Rent regulation can be related to the consumer price index and there are other examples where a state might agree with rent setting and how rent setting is done for a particular district. The state would look at measures whereby one could only increase rent by a specific proportion and rents might be averaged over a four-year period. The state might say that one can only set rents within the average rent for a particular area over a four-year period so it dampens the overall effect of the increase over that period of time. Scotland has just introduced a new Bill that looks at rent pressure zones and controlling rents in these zones rather than affecting the entire rental sector. If a particular area has a particular issue, the local authority has the power to look at a rent pressure zone. This is another example of regulation. When we look at the rental sector in European countries, we can see that there is not such a major distinction between social housing and the private rental sector. Therefore, when one is introducing changes in regulation, the impact of them are slightly different. This is why I refer in my statement to understanding where we want to get to and the transition we need to get there in terms of the impacts it might have. I was also asked about what will happen if we suddenly introduce regulations in terms of exits from the market. The Deputy is right in the sense that we have no evidence in light of the recent rent certainty measures concerning any mass exodus from the market. In the past year, our landlord numbers have increased rather than decreased.

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