Dáil debates

Thursday, 22 November 2012

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

 

12:30 pm

Photo of Áine CollinsÁine Collins (Cork North West, Fine Gael) | Oireachtas source

This Bill is an addition to the regulations provided for in the Private Residential Tenancies Act 2004. That Act and the Private Residential Tenancies Board have achieved considerable success since 2004 and this Bill adds to that. The whole housing market has changed dramatically since 2004, we have gone through the worst boom and bust in any housing market in the world. Irish people, traditionally, have been very attached to owning property, both personally and for investment purposes. This mindset is beginning to change rapidly because of recent events. Up until now we had very few professional landlords in the residential market, few investors who sought to stay in the rental market over the longer period and few investors who worked to give their tenants long term security of tenure. This is now changing. Many young couples will not be able to purchase a home in the foreseeable future. With changes in lifestyles and job mobility, many others may opt for good, well-controlled rental accommodation with security of tenure.

Given the difficulty in getting mortgages along with the fall in incomes, many people may never be in a position to purchase their own homes. Traditionally, these people would opt for social housing of one kind or another. For middle income families this is not an option. They are earning slightly too much to qualify for social housing but too little to get a mortgage under the strict criteria now being enforced by banks. The increase in private rental housing is inevitably going to increase to meet this demand. This new market is now going to become more vibrant. For that reason it is essential that the Government lays down very clear guidelines as to the standard of private residential properties available for rent.

The market will provide some safeguards for tenants. Professional landlords will see the advantage of providing good accommodation at a competitive price along with security of tenure. This, in turn, will guarantee the landlords stable and long-term rental income. This approach will enable households to access good quality housing appropriate to their household circumstances and in a community of their choice.

The Government's housing policy statement published in June 2011 marked a profound change in the State approach to housing policy. It takes account of the dramatic cycle of growth and collapse of the residential property market. It places explicit emphasis on choice and equality across all housing tenures.

Due to recent events and Government policy, there will be a move from focusing on the promotion of home ownership. Other forms of good quality secure housing under the private rental system will become a real alternative.

While many people, perhaps a majority, will aspire to home ownership, other households may not want or may not be in a position to own their own homes. As the Minister of State said, a well-balanced housing sector requires a strong, vibrant and well-regulated rental sector as an integral part of our housing policy for the future. The Residential Tenancies Act 2004 forms the basis for this legislation. This amendment adds to the 2004 legislation and the work of the PRTB. The Bill will extend the remit of the Residential Tenancies Act to approved housing bodies such as Respond!, Clúid, and many more. This is a welcome development but there is still one major step to be taken. At some stage in the near future local authority housing must be brought within the remit of the tenancies legislation. The reason I presume this is not being done at this stage is due to the nature of some local authority housing stock. Some of the stock, particularly older houses, is not up to current day standards. There are many reasons for this, including a lack of funding from central government, lower rents paid to local authorities than in the voluntary housing sector, a lack of resources to provide adequate advice and help to disadvantaged families, and a lack of enforcement of responsibilities of tenants in some local authority estates.

If local authorities are to be the inspection agency for private rental accommodation, they must first get their own affairs in order. They must, as quickly as possible, be brought under the same regulatory authority as private rental accommodation. Local authorities will need assistance from central government to help them ensure the required standards for rental housing are achieved. In providing the required inspection services for the rental housing sector local authorities must be able to enforce the intentions of the Government and the Minister of State, which are expressed in various tenancies Bills. We need to improve the quality and standards of rental accommodation and provide a greater deal of security for tenants and landlords. I commend the Bill to the House.

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