Dáil debates

Wednesday, 23 January 2019

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

 

6:40 pm

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael) | Oireachtas source

I dtús báire ba mhaith liom a rá gur reachtaíocht fíorthábhachtach í an Bille um Thionóntachtaí Cónaithe (Leasú) (Uimh. 2) 2018 a chabhróidh linn na cuspóirí agus na haidhmeanna atá sa phlean Atógáil Éireann, plean gníomhaíochta maidir le tithíochta agus easpa dídine, a bhaint amach. Tá an plean Atógáil Éireann tógtha ar chúig cholún lena n-áirítear: ag dul i ngleic le heaspa dídine, dlús a chur le tithíocht shóisialta, tuilleadh tithe a thógáil, an earnáil cíosa a fheabhsú agus tithíocht reatha a úsáid. Tá an Bille seo ag teacht go mór leis an gceathrú colúin, an earnáil cíosa a fheabhsú, a d'fhoilsigh an Rialtas sa straitéis cíosa.

In recent years there has been a perception that the number of households in the rental accommodation sector has reached a new high, at almost 19%. We have been told in news stories that Ireland now has a higher number of households renting than ever before. If we go back 70 years ago, some 40% of households were in the rental sector, which means that in the 1940s and 1950s at least two in every five households in Ireland were accommodated through this sector. It was only in the following decades, in the 1970s and 1980s in particular, that rental accommodation gave way to owner occupancy. We all hope that trend will continue and the home ownership continues to grow. For a while Ireland was more in line with European models of housing whereby rental options are far more prevalent. The prevalence and practice of renting accommodation in other countries has ensured the development of more comprehensive and robust rental sectors with clearly stated rules and regulations covering issues such as rental amounts and tenancy durations. Due to our recent history and our preference for owner-occupancy accommodation, such a system has not developed here, which is why the Residential Tenancies (Amendment) (No. 2) Bill 2018 is so important.

The Residential Tenancies Act 2004 was a good start, but the intervening years have shown the great need for improvement. There is particular urgency with this legislation because of the re-balancing that is occurring. More and more households are now part of the rental sector. It is important to say that the vast majority of tenants or householders who are renting and the vast majority of people letting accommodation, or landlords, are fair and take their responsibilities seriously.

In fact, if every landlord was law-abiding and did not break any rules and if every tenant was of good behaviour and did not cause any issues, then there would be no need for legislation at all. Unfortunately, however, we only ever hear of the extreme cases, whether the unscrupulous landlord or the reckless tenant. They are out there and serious issues arise. This legislation is needed to address some of these issues.

The 25 sections of the Bill seek to achieve a wide range of objectives to help tenants and landlords. Several sections are vital. Section 7 will provide greater certainty to tenants and households in the rental sector. The amendment to section 66 of the 2004 Act will extend the notice periods required from a landlord who has decided to terminate a tenancy. The provision will ensure that a tenant of more than six months will have three months' notice and anyone of more than five years will have four months' notice. The notice required climbs up to seven months for a household in a tenancy agreement for eight years or more. These provisions will provide households with certainty and with significant time to plan ahead should circumstances change. That is important because one problem is the pressure people fall under when they do not have the time to find alternative accommodation. I welcome that feature.

Another important feature of the Bill is the introduction of new powers for the RTB. Unfortunately, although the vast majority of landlords are fair and honest, there have been cases where the behaviour of property owners has been illegal. A little over two years ago the Government introduced RPZs to control, insofar as constitutionally possible, rental amounts. The serious constraint on housing supply brought about by the recession meant that in several areas rental amounts were increasing at unsustainable rates to unaffordable levels. The zones have helped to stem that increase. A small minority saw this as an opportunity. Many in the House will know of examples of tenants falling victim to the dubious actions of some landlords. The Bill will help to tackle these problems and ensure that the RPZ regulations are observed. The Bill will introduce a fine of up to €30,000 for breaching RPZ rules. It will introduce a new criminal offence for landlords who implement illegal rent increases or who abuse the substantial improvements rule to end a tenancy. It will also introduce sanctions for the failure to register or update tenancies with the RTB. The introduction of new rules and regulations must be joined by the greater empowerment of this State body This is achieved through the amendment of the 2004 Act under section 18. One of the new powers that will be effective in operation and in regulating behaviour is the power of the RTB to initiate investigations without the need for a specific complaint to be made. That is welcome.

Go héifeachtach, leagann an Bille seo amach an bealach chun cinn chun níos mó struchtúir a thabhairt don earnáil chíosa. Tá sé ag iarraidh caighdeáin a fheabhsú san earnáil agus cothrom na Féinne agus trédhearcacht a chinntiú. I ndeireadh na dála tá an Bille seo ag iarraidh daoine, idir tiarnaí talún agus tionóntaí araon, a chosaint. Déanfaidh sé é seo trí tréimhsí fógartha níos faide nuair atá deireadh á chur le léas a thabhairt isteach, i measc gníomhaíochtaí eile.

I welcome the Bill. This important area can cause problems in cases of unscrupulous landlords or unruly tenants. Unfortunately, both types of cases cross our desks at times. I welcome the powers of the RTB to inspect without prior notice. That is important because it is not right or proper that people would have substandard accommodation. These initiatives are important.

One point that has been brought to my attention is that the attractiveness of being a landlord can be diminished with over-regulation, over-taxation and the costs of repairs in some cases. That is a real threat. I wish to put on record that my spouse has a house that is rented out at what is, I have to say, a fair rent. I say as much in case anyone accuses me of being biased in that regard. She is an accidental landlord because she happens to be an only child with both parents deceased. At times, the role of landlord is not attractive. This concern has been expressed by Deputy Healy-Rae. We need to ensure that the importance of landlords is understood. The importance of landlords in providing homes to rent is appreciated. Many landlords believe their role is not appreciated and that it is a matter of constant attacks on them.

At the same time, we need to ensure that landlords provide the best accommodation for tenants because in recent years it has been a landlord's market. Demand exceeds supply and, therefore, it is more difficult to acquire properties to rent. It is important that standards are adhered to and that landlords act fairly to those tenants who need to put a home over their heads. It is a matter of balance and we should also appreciate the important role that landlords and the private market play in ensuring that homes are available for rent. At the same time, it is vital that those same homes are up to standard and that proper notice is given when a tenancy is to be ended. People need to be given an opportunity to source another home in what can be a difficult market, especially in many urban areas such as in Dublin.

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