Dáil debates

Wednesday, 21 November 2012

Residential Tenancies (Amendment) (No. 2) Bill 2012: Second Stage (Resumed)

 

5:20 pm

Photo of John BrowneJohn Browne (Wexford, Fianna Fail) | Oireachtas source

I am about to offer the Minister of State a solution to the problem by referring to NAMA. She might have more influence with NAMA than people such as us, who continually contact NAMA about its housing stock. In December 2011, NAMA drew up a list of 2,000 properties for social housing and I believe it has not allocated any social housing thus far. I understand it may do so in 2013. We are all aware of the substantial number of houses on NAMA's books. While some of them are obviously not suitable for reallocating, a substantial number of completed houses are lying idle and they should be brought into play as quickly as possible. I am sure the Minister of State will also want that to happen because it would solve some of the current problems.

Regardless of how we feel, most Irish people like to own their own homes. Local authorities have the rental accommodation scheme, the leasing scheme and other schemes which are good in their own way, but many people would prefer to purchase the house, which they are not entitled to do under the RA scheme because they usually lease for five or ten years, after which the families may have to move again. Some forward thinking in that area might ensure that local authorities would be in a position to purchase these houses when additional funding becomes available. We all like to own houses and like to be able to buy out houses from the local authority. I believe I read a newspaper report indicating the Government was considering a 60% write-off to encourage people to buy out the houses in which they are living. That would also be welcome because it would give people an opportunity to buy out houses even though they might be on low incomes or dependent on social welfare.

A number of issues with the rental scheme cause major problems, including the requirement for a deposit. People may pay an upfront deposit of €600 to €1,000, yet when they leave that particular house they find it difficult to get back the deposit. Landlords tend to find some reason - a flimsy reason in most cases - not to return a deposit. As a result, if people are moving to a more suitable house, which could be a larger house because their family has grown, they find it impossible to get the money for another deposit from a community welfare officer. That may be fair enough because they have already got one deposit. However, there should be some legal status, and I hope the Minister of State will ensure through this Bill that people who pay their deposit and are entitled to have it returned get it back, because it is a major issue.

The rules for termination of tenancies, for example, are a legal minefield. The PRTB dispute resolution procedures are multi-layered and in many cases do not facilitate prompt outcomes.

This is frustrating for landlords if there is non-payment of rent by tenants or if landlords want to repossess rented premises. It is also frustrating for tenants whose deposits have been unlawfully withheld by the landlords.

The demand on the Private Residential Tenancies Board dispute resolution service has grown significantly in recent years, creating further pressures on stretched resources. Landlord and tenants need a legal system that is user-friendly together with an efficient mechanism for resolving disputes. I am aware that 2010 and 2011 were challenging years for the dispute resolution service with the unprecedented increase in the number of applications with which it had to deal. There was a 20% increase in the number of complaints it received in 2009 and more recently, on 6 February, it was reported that complaints to the Private Residential Tenancies Board had risen by 25%. There is probably a need for more resources and staff and for decisions to be made more quickly.

I welcome the fact the Bill is before the House. The Minister of State is a reasonable person and she very much understands what is happening on the ground in the rental market. I expect on Committee Stage she will accept amendments from this side of the House and I am sure she will bring forward some amendments on foot of contributions that have been made to make the Bill even more user-friendly, more appropriate and more relevant to the system than what pertains at present.

I ask the Minister of State to indicate the discussions she has had or intends to have with NAMA between now and the forthcoming budget to ensure vacant houses that are locked up but which are ready to be lived in and which could become available quickly are made available and to ensure NAMA moves on in this respect. I would cite one example in this context. Enniscorthy Town Council was buying houses from a developer whose loans were acquired by NAMA. Because of the roadblocks the agency has put in the way of the council, the council has decided not to purchase them but to lease houses instead. That was because it could not get co-operation, good, bad or indifferent, from NAMA.

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