Oireachtas Joint and Select Committees

Wednesday, 12 October 2016

Joint Oireachtas Committee on Housing, Planning, Community and Local Government

General Scheme of Housing (Miscellaneous Provisions) Bill 2016: Discussion

9:30 am

Mr. Earnán Ó Cléirigh:

I am aware of the time factor and will be as brief as possible. I will probably not cover all of the questions raised.

As Dr. Hayden mentioned, the legislation does not address all of the problems in the rental sector. Clearly, it does not, but it is not intended to. We are in the process of developing a strategy for the residential rental sector which will be published later this year. It will cover many of the issues raised and there will be an opportunity to engage in consultation in its development and that process will start later this month. All of the issues raised about extending the definition of landlord, dealing with the problem of landlords who are over-leveraged, the owners of buy-to-lets properties who are in arrears and moving towards greater long-term security of tenure for tenants will be addressed in the strategy.

I would like to respond to a number of the specific questions asked. Deputy Eoin Ó Broin asked the reason heads 22 and 23 were needed. It is to reflect the changed reality in which approved housing bodies are leasing properties in the private market. The conditions applying to the registration of these tenancies should be the same as those applying to properties they own.

On head 25, there was a good deal of discussion in arriving at the numbers mentioned. Numbers above and below them were considered. This is an immediate response to a particular problem which we are trying to avoid happening again, but, by the same token, we do not consider the matter closed. We will deal with it in the strategy. We do not want to see properties in the rental sector being sold to avoid that sector shrinking. We do not want to see people losing their homes. There are issues with the removal of a right to terminate a tenancy in order to sell a property. There are property ownership issues in that regard and we are seeking legal advice on the matter. We think the way it is phrased is appropriate for the moment, but we may look at it again in the strategy. Linked with this, the greatest risk of the termination of tenancies lies with landlords who own single units.

With respect to data for those in mortgage arrears, the vast majority are landlords with a small number of properties. That is the issue about which we need to think. More than 85% of tenancy agreements are with landlords who own one or two properties. To respond to the questions raised about the changes to the procedures of the Residential Tenancies Board, the aim in reducing the notice period for appeals, the number of people on tribunals and trying to speed up the process is very much to try to and stop landlords with a single unit or two units from being forced into insolvency. Once a dispute starts and a decision is appealed to the Residential Tenancies Board, in all cases the tenancy cannot be terminated. In a number of cases the rent is not paid, which can push many landlords over the edge into insolvency. The issues involved are very much connected. Again, this is something with which we need to deal. How do we deal with the problem of landlords who are over-leveraged?

On head 26 and whether the condition on the removal of the probation period at the beginning of a Part 4 tenancy applies to approved housing bodies, my understanding is that it does not.

To respond to Senator Jennifer Murnane O'Connor's question on the regulations covering notice periods, the periods are laid down and depend on the length of a tenancy. If notice is not given, a tenant has the right to raise the issue with the Residential Tenancies Board.

On the point raised by Threshold about head 28 and how the deposit scheme will be more effective in speeding up the processes involved, that is probably true, but from the information from it, the greatest number of cases referred to the Residential Tenancies Board concern invalid notice and rent arrears, while deposit retention is No. 3 on the list. It is significant, but there are other issues that occupy much of the board capacity and resources.

The consultation process will be launched later this month and extend for a period of about two weeks. We would welcome inputs and submissions from Threshold and other organisations, as well as committee members.