Dáil debates

Thursday, 24 January 2013

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

 

12:00 pm

Photo of Seán ConlanSeán Conlan (Cavan-Monaghan, Fine Gael) | Oireachtas source

As a nation, we have arrived at a new place in residency arrangements. Due to the events of recent years we find ourselves drifting towards the European model of families and individuals renting accommodation rather than purchasing it, as was the case before the recession. This has largely resulted from the imposition of more difficult criteria for mortgage applicants, making it more difficult to secure finance to purchase a home, and from the fall-out of a broken financial system whereby many have accrued enormous debts and will not be considered for further advances in the foreseeable future. Added to this is the growing number of unfortunate people who have lost jobs and can no longer meet their mortgage repayments, presenting them with no alternative but to hand back the keys of their homes and seek rented accommodation.

The rental sector is booming. There is enormous growth in the sector. The presence of the essential elements guaranteeing future growth has provided a challenge to the Legislature to enact legislation capable of delivering an adequately regulated property rental sector that will meet the needs of the new rental population. This is what the Bill seeks to do.

The Bill is aimed at expediting the dispute resolution process and broadening the scope of the legislation to afford this facility to tenancies in the voluntary and co-operative housing sectors. It does this to considerable effect. In that regard, the Bill is a welcome improvement on the current system.

Rented accommodation is often acquired on a short to medium term agreement basis and fast and efficient addressing of disputes is essential as they often relate to people who are transient. It is important that the resolution process addresses the needs of those at whom it is targeted. Therefore, anything that expedites the process is helpful.

Some 72% of cases brought by tenants to the PRTB, which will now be known as the residential tenancies board, RTB, relate to issues of deposit retention, while 68% of those brought on behalf of landlords relate to rent arrears. These are the two major issues causing disputes. It is puzzling, therefore, that the legislation that seeks to address the area of dispute resolution in the tenancy sector ignores the two items that represent almost three quarters of all complaints processed. While I applaud the endeavours of the Minister in seeking to address this area, we need to include many of the issues that are absent from the current process if we are to provide legislation that adequately addresses the needs of the sector.

Before the recession, rental accommodation was the domain of the young and the less well-off. It has now become the vehicle of choice for a wider range of our citizens as a means of providing accommodation for themselves and their families. It will become more common and, in time, we will become more like our European counterparts. A properly regulated sector can do the nation a service, allowing members of the community to have a home and a life, two things they have often had to choose between because of the exorbitant price of accommodation.

The key issues for landlords are non-payment of rent and anti-social behaviour of tenants. If tenants trash an apartment or house, the unfortunate landlord, who may have bought the property as a pension plan and at a very high price, may not have the financial wherewithal to renovate the apartment. The tenants can walk away scot fee and there is a very slow process in place to deal with the issue. From tenants' points of view, retention of deposits is a massive issue.

We need legislation with teeth to address these issues in a speedy fashion and make sure both landlord and tenant are treated fairly. Unless we properly fund the RTB we would be better off abolishing it and going back to the old system of settling disputes in the courts. Tenants and landlords both need speedy resolution. Twelve months is too long to deal with any issue. Perhaps we should have statutory time limits for responses to queries from individuals. Statutory time limits and proper funding would ensure that the organisation can deal with issues in a speedy fashion.

I welcome the basis of the legislation. We need to tweak it and make sure we focus on the fundamental issues that are of most importance to people in the private rental sector.

Comments

No comments

Log in or join to post a public comment.