Professor Michelle Norris:

From my perspective, there was a consensus among the entire commission that the system of rent pressure zones needed reform. It was introduced as an emergency measure, rather than something intended to be in place long term. It is not possible under the formula for extending RPZs to extend them nationwide. There are a lot of anomalies around the country. I am sure TDs and Senators will be aware of areas not covered by the zones. We also felt that the pegging of rent increases at the flat rate of 2% was not a good system and discouraged supply. We were unclear about the rationale for the particular 2% level. There was consensus that the system needed to be reformed.

The majority of members felt it should be replaced with a reference rent system. In our view, if there was going to be comprehensive reform of rent control, there needed to be a long-term, sustainable alternative put in place. The reference rent model has a number of advantageous. It is used effectively in other European countries where there are high levels of private rented housing. If designed effectively, it should not stymie supply significantly. Obviously, there is a trade-off between the rights of tenants to affordability and the interests of landlords. It is about balancing them. We felt this was a balanced solution. Our idea was that the system would be designed and managed by the Residential Tenancies Board or any replacement organisation. It could be designed to reflect the type of information it collects currently and designed strategically, reviewed and extended to achieve the kind of policy outcomes the Government prioritises. For instance, it could allow landlords who invest in a property to improve the BER rating to increase the rent. We felt that an evidence-based model, that would be within the remit of the RTB and reviewed regularly based on a review of market evidence, would help depoliticise the rental system and also provide certainty for landlords and tenants long term.

We also recommended that rent control be applied at property level and continued from tenancy to tenancy. This was quite a specific recommendation of the majority of commission members, given that the supply shortage is so critical and many rents, particularly rents from landlords providing accommodation long term to vulnerable households, such as households on HAP, are well below mark rate. We were concerned that landlords would have a strong incentive to terminate such tenancies on that basis. That does not mean this measure would be permanent, however. It could be reviewed as supply increased.