Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I acknowledge, as does everyone on these benches, that rents in Ireland are very high, particularly high in our cities, and have become unaffordable for many people who, as the Deputy has said, are forced to opt for long commutes instead. That is why we introduced the rent-pressure zones. They have only been in place for a few years. There is evidence from the RTB's quarterly reports that rent increases are now moderating. That can be seen in the most recent report. They were never going to work overnight; it was always going to take time for them to work. However, we can now see a slowdown in the rate of increases and even some reductions in rents in the last quarter.

No amount of rent-pressure zones, caps, regulations or formulas will solve this problem. They can help to alleviate the problem and make it less bad. They can act to treat the symptoms, but as long as there are more people who want or need to rent than properties available to rent, we will have a problem. It might appear as rent price inflation or under-the-counter cash payments, which is what happens in countries with very strict rent controls. It might appear in the form of people who cannot find anywhere to rent and have to continue to live with friends or relatives because there is a waiting list for a place to rent.

The solution must be based on supply. We need to ensure more places are available for people to rent, which will moderate prices and bring them down. The last time rent prices in Ireland fell was because the mismatch between supply and demand was corrected, and there was more supply than demand for rental properties. That is why we have put such effort into increasing supply.

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