Ms Bairbre Nic Aongusa:

I will answer the questions in the order they were asked. Deputy Ó Broin and many others questioned the rationale behind the criteria we have. The rationale for the RPZs was set out quite clearly in the strategy, and the key point is that rapidly increasing rental inflation is the most significant challenge facing the sector. Ultimately the solution is to be found in increasing the supply of rental properties. While the supply is coming on stream, it is very important that we have a targeted, time-bound and transparent policy response. The rent predictability measure is targeted and time bound in order to alleviate the pressure while new supply comes on stream.

In terms of the rationale for the 7%, the measure targets areas where rents are rising rapidly and are unsustainable. We were legislating at a time when the average national rent was increasing by 9%. A 7% increase is seen as unsustainable.

Similarly, the rise had to be consistent over time.

Areas were chosen where the rents were already high, that is, above the national average and where the rents had consistently been rising rapidly over the period of the previous six quarters. Those are the two tests that are applied and set down in the legislation passed by Dáil Éireann before Christmas.

Regarding the local electoral areas, the Deputy will recall that in the debate in the Dáil, the Minister spoke about the fact that some local authority areas already met the criteria and were designated immediately, including the Dublin local authorities and Cork city, but he also gave a commitment that we would consider trying to get data for smaller local electoral areas, and we delivered on that. The additional rent pressure zones orders were made in January to bring in the additional areas.

It is very early days. Ms Carroll and Mr. Silke might discuss in more detail the process that was involved but, in fairness, the Residential Tenancies Board, RTB, has done a huge amount of work in a very short period of time to assemble the data and be able to do the kind of analysis that allowed the Minister to designate 12 additional local areas and examine 15 others against the criteria in the Act.