Dáil debates

Tuesday, 22 January 2019

Residential Tenancies (Amendment) (No. 2) Bill 2018: Second Stage

 

8:20 pm

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

I will share my time with Deputy Eamon Scanlon. I thank the Minister for outlining the Bill. We have waited quite some time for this. Everyone across the House agrees that the rental sector and the legislation which governs it require reform. We want to see tenants' rights strengthened, and therefore I welcome the proposal to lengthen the notice periods and the additional powers given to the Residential Tenancies Board. They are overdue and I am pleased to see this. Fianna Fáil will support the Bill in broad terms, although some elements will have to be gone through in more detail and considered on Committee Stage. I am generally concerned about the over-reliance on the courts. While the Bill gives the RTB the additional powers which most of us want it to have, when it makes a determination it will still require recourse to the Circuit Court where many of the blockages and delays have occurred. The Minister might expand further on Committee Stage on the advice he received on this. Deputy Ó Broin and I had also discussed with the Minister the matter of criminal sanction and whether the process might be made easier if it was a civil sanction so that recourse to the courts would not be necessary.

The legislation and revision of these regulations takes place in the middle of a rental crisis where there is insecurity in the market. Fianna Fáil wants to see improved security for tenants but also increased supply. We must strike a balance so that the introduction of legislation and regulations do not have a negative impact on supply. The vast majority of landlords are individuals with one or two properties. Figures from last year show that about 6,000 of these individual landlords have left the market, something which is driving up rents in many places. We must look at supply, and the roll-out of the cost rental model is crucially important in this. We must look at what works in other parts of Europe and diversify our rental market. Rents in Ireland are approximately 36% higher than at the height of the previous boom. As the Minister noted, there are people who pay €500 to €700 more in rent than they would pay in mortgage payments, were they able to secure a mortgage to buy the same property. The Minister has outlined some of the reasons he believes people are continuing to rent longer, such as getting married later in life, travelling or changes in lifestyle. Much of it, however, is because they cannot afford to buy a home. We must all know people in our constituencies throughout the country who, having been fortunate to save a deposit and buy a home, save themselves hundreds of euro each month by paying a mortgage in comparison with what they paid in rent.

We need a review of the rent pressure zones, RPZs. While they have worked to an extent, they are imperfect. There must also be a review of areas outside the RPZs. The review must look at exemptions for new properties.

The Minister referred to two very significant areas not covered in the Bill on which he will introduce amendments on Committee Stage. Certainly, Fianna Fáil wants to ensure that purpose-built student accommodation is included in the RPZs. Fianna Fáil has published legislation on this, as has Sinn Féin. We met the Minister on this during the summer and I want to see this on Committee Stage. We would like to have sight of the amendments in advance of Committee Stage so that we are not put in a position where we must disagree with the Minister. All of us recognise that many of these changes are needed. Between the Government, Fianna Fáil, the Labour Party, Sinn Féin and others, we can work together to agree the amendments, particularly on purpose-built student accommodation to ensure that students are not gouged in the new academic year, as the Bill must pass through both Houses before summer. I give Fianna Fáil's commitment that we will work constructively to ensure its passage through both Houses, and that it is done speedily, however, student accommodation must be covered.

Transparency is very important. The Minister is receiving legal advice on the rent price register and I wonder about the nature of that advice. It is not something I would have thought would be especially problematic and I hope that is not the case. Will the Minister enlighten us on that? Price transparency is something that will help the market and help the Department and the RTB in their collection of data.

Annual registration is something that requires interrogation. First, how might this effect price? Second, what administrative burden might it place on the RTB? I would like to return to this on Committee Stage to see how this would work in real terms. A balance must be struck between giving the RTB additional powers and tying it up in red tape. It has had a substantial increase in complaints. The Minister observed how it has undertaken more than 5,000 individual investigations. The Committee on Housing, Planning and Local Government must ensure that it is properly resourced so that it can carry out the additional functions or powers that this legislation may give it. On Committee Stage, we might see the plans to expand the RTB, the additional funding that is required to do so and the additional staff that will be necessary to carry out its new duties.

Other things are needed. The Minister said another Bill on rent reform is forthcoming. There are other possible policies. Fianna Fáil and others have called for a national rent deposit scheme, which would be very important. I refer to the local authority quality certificate. We also need to examine tax treatment and ensure that we keep good landlords in the market because that is part of our housing solution. We need to see how we can move forward together to ensure the speedy implementation of the cost rental model.

My main concern about the Bill is its over-reliance on the courts. The Minister has told the housing committee that criminal sanction is required, but my grave concern is that every stage will require recourse to the courts to implement determinations. That clogs up the courts but also prolongs the implementation of many of these judgements.

While this Bill is published in the context of current abuses in the market, especially by landlords, there are other matters of concern such as third-party complaints, anti-social behaviour and the role and responsibilities of tenants. These may not be matters for this Bill but ought to be examined in future. Colleagues have told me that they would like the Bill to be clear about how complaints are made and how they are worked through. Someone deemed to be affected in such cases may not always be a landlord or tenant but may be a neighbour.

We must consider mechanisms that allow other valid complaints to be made. The RTB can make a determination on whether they are spurious. In many instances, communities can be affected by bad landlords. In some, they can be affected by bad tenants.

We broadly welcome this legislation. It is an improvement on and adds to what we have. It does not do everything we want, but I give the Minister a commitment on behalf of Fianna Fail that we will work speedily to improve this Bill on Committee Stage. We are considering potential amendments, as I am sure other colleagues are. I ask that the Minister give us early sight of the purpose-built student accommodation amendments and the price register amendments as soon as he can, as doing so would allow for an easier passage of same on Committee Stage.

We support the Bill because we view it as an important step towards strengthening tenants' rights, improving the process and giving additional powers to the Residential Tenancies Board that are badly needed.

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