Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Although rents have risen rapidly throughout the country and particularly in Dublin in the past 12 months, they are still not where they were a couple of years ago. There was a collapse in the rental market similar to the collapse of housing values. As the economy is being restored, rents are going up again, although they are still not back where they were a couple of years ago.

There is not a shred of evidence to support the Deputy's theory that rising rents are connected to NAMA's policy of selling assets, which it is required to do. The problem is there is a lack of supply which sometimes is connected to regulation. One of the issues to which one can point is the regulation introduced some years ago that all apartments or flats should have en-suite facilities. This compares to the bedsit arrangements where there was a bathroom in the corridor that served two or three bedsits. That took 5,000 bedsits out of commission as they could no longer be rented.

That is why I extended the home extension scheme to landlords. I am allowing them to restore bedsits that are out of commission by carrying out the work needed to provide en-suite facilities, thereby enabling them to abide by the regulation. It is a supply side problem. When an economy that had been sinking begins to rise, it is very difficult to switch on construction, but it is now happening extensively around Dublin.

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