Paudie Coffey (Waterford, Fine Gael) | Oireachtas source

The main cause of rising rents is a lack of supply in the market. The Deputy mentioned the social housing strategy 2020, which was published last November. This is not just a strategy.

It sets out clear, measurable actions and targets to increase the supply of social housing, reform delivery arrangements and meet the housing needs of all households on the housing list. In addition, the implementation of the range of actions under the Government's Construction 2020 Strategy will support increased supply in the wider housing market. We will be expecting local authorities throughout the country to come forward with proposals in the coming weeks to seriously ramp up the provision of social housing.

The private rented sector is an important element of the housing market, with the proportion of households in the sector almost doubling in the period from 2006 to 2011. I am very conscious of the difficulties caused by rising rents. In the third quarter of 2014, rents were 5.6% higher nationally than in the same quarter of 2013, according to the most recent rent index from the Private Residential Tenancies Board. Rents for houses were 4.3% higher while apartment rents were 7.3% higher than in the same quarter of 2013. In Dublin, which is seeing the highest rates of increase nationally, overall rents were higher by 9.5% although the rate of annual increase was down slightly.

The Government is monitoring the rental market closely and is considering all options in order to achieve greater rent certainty, which is in the interests of tenants. The options put forward in the report, Rent Stability in the Private Rented Sector, commissioned by the PRTB and published in autumn 2014, form part of these considerations. My overriding objective is to achieve stability and sustainability in the rental market for the benefit of tenants, landlords and society as a whole. In this regard, we need to be cognisant of the possible negative impacts of rent regulation, including the impact on supply and the potential for black market transactions.

The Residential Tenancies Act 2004 regulates the landlord-tenant relationship in the private rented sector and sets out the rights and obligations of landlords and tenants relating to security of tenure, termination of tenancies, rent and rent reviews. The ongoing development of a stable, well-regulated rented sector is a key goal for the Government. The legal framework set out in the 2004 Act represented the most significant legislative reform in the private rented sector in over a century. Prior to this there was little or no security of tenure for tenants and in most tenancies the landlord had a virtually absolute right to raise the rent at any time. That is not the case at present.

The 2004 Act clearly provides that rents may not be greater than the open-market rate and may only be reviewed upwards or downwards once a year, unless there has been a substantial change in the nature of the accommodation that warrants a review. The Act also provides that a tenant must be given 28 days' notice of new rent. These provisions have effect notwithstanding any provision to the contrary in a lease or tenancy agreement.

People under threat of eviction have rights under law with regard to their tenancies. The PRTB is undertaking a national campaign to ensure that tenants are aware of their rights and do not leave a house prematurely or at the whim of a landlord. We take this issue very seriously and I thank the Deputy for raising it in the Dáil today.

See this speech in context