Mairead Farrell (Galway West, Sinn Fein) | Oireachtas source

I move amendment No. 21:

In page 20, between lines 25 and 26, to insert the following: "Report on income tax relief

16. The Minister shall, within six months of the passing of this Act, prepare and lay before Dáil Éireann a report on an income tax relief equivalent in value to 8.3 per cent of annual rent to all private rental tenants not already in receipt of any State subsidy, examining the social and economic impact of this measure in the context of high levels of rent and other policy levers such as a ban on rent increases.”.

This amendment proposes a report on income tax relief equivalent in value to 8.3% of annual rent to all private rental tenants not already in receipt of any State subsidy, examining the social and economic impact of this measure in the context of extremely high rents. Every one of us in this committee room knows of the major issue with people struggling to pay their rents. The latest daft.ierental report shows that rents are continuing to rise across the State. Renters in Munster, Connacht and Ulster face hikes of between 15% and 18% annually. I see it in my constituency in Galway city, but I also see it in rural and remote areas, including on our islands, where rent is ever increasing. The average monthly asking rent for the third quarter of 2021 was more than €1,500.

The Government introduced legislation pegging rents to inflation. The Minister spoke at length on the issue of inflation, but unfortunately the Minister for Housing, Local Government and Heritage, Deputy Darragh O'Brien, does not seem to be aware of it. It allows landlords to increase rent by 5.1%. This would increase the average Dublin city centre rent, which stands at €2,032, by €104 euro per month or €1,244 per year and the average rent across the State, which stands at €1,516, by €77 per month or €928 per year. We know people do not have this kind of extra income lying around. It is madness to introduce legislation that would allow landlords to increase already unaffordable rents by another 2%. People cannot afford these rents.

These rent rises provide the first data set reflective of the changes made to the rent pressure zone legislation which linked rent to inflation. The report states that 17 counties had double-digit rent inflation and rents are continuing to soar outside the Dublin area, with rents increasing by over 20% in counties Mayo, Leitrim and Roscommon. This is an enormous expense for households to carry. The rental crisis continues unabated. Tweaks to failing rent pressure zone legislation have simply failed.

Sinn Féin wants the introduction of a time-bound refundable tax credit for renters in the private sector, at a rate of 8.3% of annual rent and equivalent to one month's rent, in conjunction with a three-year ban on rent increases. This would provide much-needed relief for renters, effectively reducing the burden they face.

In 2009, the Commission on Taxation recommended discontinuing the income tax relief for rent paid, but on the grounds that the relief would increase demand and, therefore, rents to the benefit of landlords. However, this problem would not arise as we are proposing that a refundable tax credit for rent paid would be accompanied by a ban on rent increases for the period in which the relief was payable.

The Minister and all of us who are public representatives know this. People coming to our clinics tell us they just cannot pay the rent. Some of them need to move back into their parents' home. The woman who works in my constituency office rang me today to say there was a couple with their three children living in one room in one of their parents' houses because they could no longer afford the rent after they lost their jobs during the pandemic. That is the real face of this.

I genuinely think this would work. We need to do something that will work. What has been done up till now is simply not working. We need to help people who cannot afford to pay their rents and this is a practical solution. I would be delighted if the Minister would support it.