Ms Ann-Marie O'Reilly:

I sincerely thank the Vice Chairman and members of the committee for inviting us to speak today. I am joined by my colleague, Mr. Owen Duggan, who is assistant manager of Threshold’s eastern region services. Threshold has worked with and supported tenants living in the private rental sector since 1978. Each year we assist approximately 20,000 households that are private renters. Threshold advocates for a better housing system, which includes increased security of tenure, affordability, improvement in standards and a sustainable private rental sector. We are working towards a vision where housing is a right, is affordable and accessible to everyone. I will present the current situation in the private rental sector as informed by the experience of Threshold’s clients. I will also set out some of the key areas in which Threshold believe changes are needed to ensure renters have secure, affordable homes of good quality.

Threshold is deeply concerned for the future of those who are relying on the rental sector to meet their housing need, particularly those who are reliant on it to meet their long-term housing need. Among these we have acute concerns for those on limited incomes, those with children, older people and single people. The private rental sector in Ireland is not a place to forge a long-term home of your own. Despite the many protections and improvements in regulation, a landlord can still evict a tenant where there has been no wrongdoing on the tenant’s part. Landlords are evicting tenants in unprecedented numbers. Threshold has supported, on average, 462 private renters a month this year, who have received a notice of termination from their landlord. This means that every 20 minutes, a Threshold adviser is answering a call from a tenant who has been evicted from their home. The majority of these, 58%, were issued as the landlord intends to sell the home. This is dramatically different from the position in 2019, pre-Covid, when we assisted an average of 263 private renters a month. The figures have almost doubled in three years. With extremely low levels of properties advertised to rent, delivery of social housing falling short of need and the challenges of accessing homeownership, it is highly likely that an increasing number of people will be forced into homelessness. We expect to see the homeless figures increase in coming months. However, we are hearing that some local authorities are unable to provide emergency accommodation and so are turning people away. This will mean an increased number of people living in hidden homelessness, that is, people who are sleeping on couches, on floors, in cars or rough sleeping. These people will not be counted in the official homeless figures.

An additional plight for renters is the increased cost of living, in particular, the cost of heating the home this winter. The Central Statistics Office, CSO, has identified that private renters are one of the groups hit hardest by rising inflation. The ESRI has identified that private renters are at greater risk of poverty in comparison to owner-occupiers. Rental homes have lower building energy ratings, BERs, than other tenures, and renters reliant on HAP and the rental accommodation scheme, RAS, are more likely to be living in homes with a rating of D or less. It is highly likely this year that many renters will go without heating their homes. Our colleagues in the Society of St. Vincent de Paul have already reported that people are cutting back on heat, electricity and even food.

There has been little change regarding the other issues brought to Threshold by renters. The problem of poor standards and outstanding repairs in the home remains constant. Fewer people are seeking assistance with rent reviews. While we are hopeful that this is an indication that sitting tenants are being charged the legally permitted rent, we are concerned that renters may be putting up with the rent increases in order that they can hold onto their homes. We have concerns about the rate of rent increase outside of the rent pressure zones. In the most extreme cases, we have seen rents increased by 60% or more and in a number of cases, they have doubled.

The solutions to these problems are manifold. We expect to see some temporary measures in budget 2023 to alleviate some of the impact of the increased cost of fuel and other essentials. However, the issues I have highlighted today will remain once these temporary measures have been exhausted. We are proposing the reintroduction of a tax relief for private renters. This was ended in 2010, when rents had reached an all-time low. Rents are now almost double what they were at the end of 2010. We would like to see the establishment of a €20 million rent arrears fund to assist renters who may fall into arrears. This will ensure that landlords receive their rent. On the retention of rental properties in the sector, we recommend a reduced capital gains tax for landlords who sell their home with the tenant in situto the local authority or an approved housing body, AHB. This will keep tenants in their home and provide long-term security and affordability. It is a targeted measure aimed at those landlords who have a genuine desire to sell and exit the market.