Barry Cowen (Offaly, Fianna Fail) | Oireachtas source

While there are elements of this Bill that we agree with in principle, in the round, we believe it to be flawed. It takes an over-simplistic approach to solving a complex problem, namely, the crisis in the rental sector, the rental market and the lack of tenant security. In particular, the proposal to force landlords to provide for compensation of six months' rent where a tenancy is terminated on the ground that the dwelling is required for occupancy by the landlord or his or her relative, is hugely excessive and would likely lead to an increase in rents and a severe reduction in supply. I have no doubt that this measure would deepen the crisis in the rental sector.

However, I do have sympathy with the primary and most consequential provision in this Bill, namely, the proposed removal of sale as a reason for ending a tenancy and evicting a tenant. We support, in principle, the removal of sale as a reason for ending a tenancy and we are working on measures to provide greater security of occupancy for tenants in this regard. We are also particularly conscious of the failure of the mortgage-to-rent scheme in recent years. I note the stakeholders, including the Peter McVerry Trust and others, have said that the greatest barrier and threat to many tenants is the forced repossessions by banks and resale due to negative equity in the mortgage-to-let market. A realistic alternative, option or means by which this could be resolved is the mortgage-to-rent scheme but because that process is not statutorily based it has been unable to achieve what was intended. As I said, Fianna Fáil is exploring ways of strengthening that process in order to allow it to play the part it can play in helping to resolve this issue.

Unfortunately the Bill is a blunt instrument and would not necessarily lead to greater security for tenants. If anything, it might do the opposite. I have no doubt that the blanket approach taken in the Bill in terms of the complete removal of the right of landlords to use sale of property as a ground for terminating a tenancy would be unconstitutional. If passed, this Bill would be immediately challenged by landlords in the Supreme Court and would be ruled unconstitutional.

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