Richard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

The legislation that we have just passed, which has had broad support in the House, captures large institutions in the rent pressure zones. It provides new powers to ensure that these are respected, such as criminal sanctions against those who fail to respect them and stronger powers for the Residential Tenancies Board to sanction and investigate landlords. The legislation has helped to make rent pressure zones a more effective tool. Deputy Howlin will recognise that the key to the issue is increasing supply. It was the collapse of the housing market that led to the economic crisis that occurred here, with excessive borrowing for an excessive level of housing. That model cannot be restored. We have to rebuild a new model on a sustainable basis. The evidence from the last years is that, year-on-year, we have expanded the supply of social homes which will reach 10,000 this year, supported tenancies in which an additional 17,000 families will be supported this year, and private sector building which has to continue.

The sorts of initiatives that are at the heart of the Government’s Rebuilding Ireland programme, such as having its own Land Development Agency to put together sites and drive supply and having infrastructural investment and funding tools to put in the hands of those who will build the houses, are important to deliver the supply deficit that we face. Unfortunately, until we overcome the supply deficit, the weakest people in the market will have difficulties. We must bridge the supply as well as continuing to support the social investments that we are making.

That is the long-term solution. Rent pressure zones have a place but they are not the long-term solution, which is about ensuring that the market can again provide enough housing for the supply. That now is higher than the 25,000 that was originally stated because of the strength of the recovery. We must set our targets higher, which has been done in the Project 2040 plan.

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