Dáil debates

Wednesday, 21 June 2017

Topical Issue Debate

Rent Controls

6:00 pm

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

This Government is a very competitive one. There are many competing crises under the Government's remit at present but, unfortunately, one crisis is the clear winner - the housing crisis. This is a humanitarian crisis that has been building for many years and it still worsens today.

I attend Trim district courthouse regularly. It is chock-a-block with families in mortgage distress where banks are seeking to repossess their homes. It is shocking that there is a property rent and price bubble in full swing in Meath at present while the collateral damage of the last Fianna Fáil property crash is still weaving its way through the courts. Hundreds of families in Meath are living with friends and family. Dozens more are in emergency accommodation. I am aware of people in Meath who have had to stay in tents, churches and Garda station cells so they could bridge the gaps between homes. Currently, there are 3,800 people on the housing waiting list in Meath, despite the fact that there are 2,500 vacant or derelict buildings in the county.

Rents in the county have spiralled over the last number of years, increasing by 50% in the last four years. They increased by 15.8% last year and in the year to date they have increased by 16.7%. They are spiralling out of control. Indeed, they are increasing at a faster rate than in any other county in the State. I wholeheartedly support the right of a landlord to charge a fair price for a decent house. Indeed, it is a key component of the housing provision system in this country. However, the rents we are discussing now are in the realm of super profits. These are not the rents that are necessary to cover mortgages or to ensure that the landlord can provide a house and maintain its contents in a decent fashion. Supernormal profits are being made.

The average rent in Meath at present is €1,050 for a house. That makes renting a house unaffordable for many people on low incomes. Perhaps the Minister of State will put himself in the shoes of a person working 40 hours per week and earning the minimum wage. If that person is required to provide accommodation for their family and rent an average house in the county, they will spend 65% of their income on the rental of that property. That is their income before it is taxed. They are expected to spend the 35% that is left after paying the landlord on feeding their family and on providing electricity, warmth, clothing, education and health care for their family.

The key point here, which is something that has been missed by the Government so far, is that the point at which rental accommodation becomes unaffordable is the point where homelessness begins. That is the reason our party, since this crisis has manifested itself, has pleaded with the Government to link rent increases to the consumer price index. At present, rent pressure zones have been designated in only a small part of this country. Places such as Meath West are left outside of those zones. I ask the Minister to ensure that towns in the commuter belt are considered part of the rent pressure zones.

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