Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

This morning, the Residential Tenancies Board, RTB, published its quarterly rental index for quarter 2 of 2018, which shows that rents continue to spiral out of control. The average cost of renting a home across the State is now €1,094. This equates to an annual increase of 7.6%. In the greater Dublin area, the situation is even worse in that average rents are now a shocking €1,587, which is an annual increase of 8.8%. In my home county of Donegal, the increase year-on-year is 6.7%. What is equally worrying is a clear emergence of two-tiered rental market. The report shows that while rental costs in existing tenancies increased by 4.9%, which is in excess of the Government's rent cap of 4%, those in new tenancies increased by 8.4%. Sinn Féin warned the Government that landlords would use the refurbishment clause to circumvent the rent pressure zone, RPZ, caps and re-let properties. All of us in this House know that this is happening. In a large number of cases, landlords are using these loopholes to evict tenants and secure increase rents, which is scandalous.

Sinn Féin has been calling for some time now for the RTB to be given additional powers to combat this practice. I acknowledge that the Minister for Housing, Planning and Local Government, Deputy Eoghan Murphy, has finally accepted this argument from my colleague, Deputy Eoin Ó Broin. We now need to see that legislation introduced without delay. This morning during Oral Questions, the Minister said that people are paying too much in rent and that this has to be better controlled. On that point, he is correct, but his plan is wrong. It is now essential that the RPZ legislation be reviewed because it is not working. We need a change of policy and this means taking urgent action to help hard pressed renters. Sinn Féin has proposed the introduction of a three-year emergency rent freeze. Existing tenancies would have their rents frozen at current levels, while new tenancies would be pegged to the RTB average rent index for the their area. Even with a freeze, rents are too high and, for this reason, Sinn Féin believes a tax relief for tenants for a period of three years needs to be introduced. This would give hard-pressed renters one month's rent back annually. This is a proper response to this crisis that has unfolded under the watch of the Government.

We also need to fast track the legislation to give the RTB more enforcement powers and additional resources. The Minister, Deputy Doherty, must accept that this crisis is out of control and that meaningful and real action is required now. Will the Government introduce the measures I have outlined, including a rent freeze and a tax relief for hard-pressed renters, and will it ensure that a residential tenancies Bill is introduced to this House without delay?

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