Dáil debates

Tuesday, 9 May 2017

2:25 pm

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance) | Oireachtas source

Today we saw yet another damning piece of evidence, in the form of the daft.iereport, of the abysmal failure of the Government to deal with the spiralling rental, housing and homelessness crisis. The report shows that rents have jumped by a record 13% in the past year - €134 per month on average over the course of a year - guaranteeing to escalate that crisis and lead to more emergency situations, more evictions and more people in homeless accommodation. Typically, the Taoiseach or the Minister says that the Government inherited this, that it takes time to deal with the problem and that the Government is on it.

I will cite a very concrete example of how decisions the Government made in the past six months have contributed directly to this shambles and the hardship that follows. Robin Hill, a development of apartments in Balally in Sandyford, was originally built by the McEvaddy brothers in 2008. The development, which consists of 52 apartments, went into NAMA at some point. For most of the time it has been in NAMA, at least 15 and possibly as many as half of the apartments have been empty while the housing crisis spirals out of control. In May 2016, Dún Laoghaire-Rathdown County Council asked whether it would purchase 15 of the vacant units. It was told that it could only buy the entire block. Shortly after the Project Eagle scandal broke in September, NAMA agreed the sale of Project Gem, which included these apartments, to the vulture fund Cerberus. The sale, which was one of the biggest sales of property in the history of the State, went through. Since then, Cerberus has moved to start evicting the tenants in a block that is still half empty. Of the 21 remaining tenants I have met, five are to be evicted in June. Others whom Cerberus feels it cannot evict straight away have been told they must pay an extra €250 per month in heating and hot water charges that were previously included in the rent. They were never charged for that previously. In other words, this is a back-door rent increase of about 20%.

These empty units are sitting there while we have record numbers in homeless accommodation with evictions to follow. This would have been avoidable if NAMA had not sold this development to a vulture fund but had given it to the local authority as it requested and if the Minister for Housing, Planning, Community and Local Government had ensured his Bill before Christmas included a provision to prevent new owners from evicting tenants when apartments are sold, as we warned would happen, or finding back-door ways to ratchet up rents. Is it not the truth that the crisis is avoidable and has resulted from the Government's policy failures?

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