Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I thank the Deputy for raising this important matter in the manner he has. He is correct in pointing out the scale of the buy-to-let market, and there are approximately 150,000 mortgages through all the financial institutions that are effectively buy-to-let mortgages. The most recent information available to me indicates that approximately 18% of those accounts have been arrears for approximately 90 days or more. For primary dwelling mortgages, the corresponding arrears are between 11% and 15%, so the problem is real.

As we begin the process of introducing the schemes we have through financial institutions, we will see more of the buy-to-let mortgages moved on from the banks' loan books. It is an inevitable consequence. The Deputy is more aware than I am of the recent comments of the Governor of the Central Bank in this matter when he correctly put pressure on the banks to get on with the task of moving on some of these properties.

It is arguable that we will not get to the bottom of the housing market until such time as much of the buy-to-let market, which is in a difficult and precarious position, has been moved on.

I will not rehash the various arguments on the general issue as the Deputy is aware of them. We have had the Keane report and the Government wants the banks to fully implement the provisions of the Personal Insolvency Act. More important, a new agreement has been reached between the Central Bank and financial institutions to introduce a suite of measures to meet the needs of their customers, whether by writing down or restructuring debt, where necessary. As I noted in the House the other day, the banks are well capitalised for this purpose. When we capitalised them in March 2011 we made abundantly clear that we were providing money for the purpose of substantial write-downs on their mortgage books. There is frustration across the Government that the banks need to proceed with this task and write down more mortgages. I am confident that we will see much more action in 2013 than we did last year on moving on housing stock.

The Deputy referred to a code of conduct for receivers who are given powers to act on the part of the banks. I will refer to the reply provided to me on this matter as it has been issued by another Department. Regarding the protections and rights of tenants in the private rental sector, these rights are provided for in tenancy law, including the 2004 Residential Tenancies Act, which is the main regulatory framework for the private rented sector. It is important that the rights of tenants, as provided for under tenancy agreements and the Residential Tenancies Act, are protected. While the circumstances of each case may vary depending on the terms of the mortgage or charge under which a receiver is appointed, it is important that the policies and procedures of banks in appointing receivers do not affect the statutory or contractual rights of tenants. This is the point the Deputy raised.

It is also important that clarity be given to tenants as to where the responsibilities of landlords, as set out in the 2004 Act, now rest. Clear and legally sound direction must be given regarding to whom the rent should be paid. It should also be noted that receivers who are acting on behalf of an entity regulated by the Central Bank are also subject to the requirements of the consumer protection code.

To cut to the chase, the view of the Minister of State with responsibility for housing and planning, a portfolio that cuts across the financial area, is that protection is in place in respect of how a receiver should act. It is logical that where a receiver is appointed he or she will want to have a rent roll and will want tenants in situas a means of maintaining the business as a going concern, if that is the choice of the receiver. Ordinarily, the rights that are prescribed for the tenant in a case where the tenant has a rent book and lease agreement still stand and would take precedent. The view of the Minister of State with responsibility for housing is that protections are in place under the consumer protection code. However, if the Deputy has specific proposals he would like me to put to the Minister of State, I am all ears.

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