Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The Government, through the Department of Social Protection, funds approximately 30% of the private rented sector. Currently, it is costing €430 million per annum. Deputy Pringle is well aware that it was necessary to put in some limits in respect of the rents being charged by landlords. The relationship between the Department is with the tenant and not the landlord, so a tenant applying for rent allowance does so in negotiation with the landlord. If the rent being charged is above the limit set down, then the tenant is advised to discuss that with the landlord with a view to reducing the rent or to seek alternative accommodation.

Some 42,000 people had their claims for rent allowance awarded this year, which proves the point that it is possible to have acceptable accommodation provided for tenants without breaching the limits set down. The new maximum rent allowance limits came into force on 1 January 2012 and will apply until June 2013. This has worked in 42,000 cases where the rent sought by the landlord was within the limit set.

This will move from the Department of Social Protection, which currently provides the rent supplement to housing authorities, to a new housing assistance payment scheme which will be introduced as part of the new housing Bill to be published next year. Those looking for suitable accommodation are advised to talk to the landlord in order that the rent is with the limits set. As I said, 42,000 have been awarded this year.

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