Peter Fitzpatrick (Louth, Independent) | Oireachtas source

As I stated as recently as last week, I welcome each and every opportunity to discuss the rental and housing crisis we now face in this country. The rental situation in Ireland is now at a crisis point. In my constituency of Louth, as far as I am aware, rent has never been higher. In my home town of Dundalk, it is normal for a standard three-bedroom house to have a rent bill of between €1,200 and €1,600 per month. To put this in perspective, that is the equivalent of between €280 and €370 per week. This puts renting a house out of reach for most young couples.

The motion before us today calls on the Government to take a number of immediate actions that will help those caught in the rental trap. I would support an emergency three-year ban on rent increases for private residential houses, but to implement this we must put in place the necessary legislation to protect renters. In mainland Europe it is quite common to see people rent for all their adult lives but this is not what we are used to here in Ireland. However, it is the case that we need to readjust our thinking. In mainland Europe it is commonplace for tenants to have long-term lease agreements with their landlords, in many cases for terms of 20 years or more. Furthermore, there are very strong rules which protect the tenants and, for that matter, the landlords. In Ireland at present it is common for lease agreements to last no longer than a couple of years. This does not give certainty to tenants, which as far as I am concerned is one the major issues. We must be able to protect tenants and also give certainty to landlords. Why can we not look at implementing proper legislation that will facilitate longer-term tenancies, tenancies that in effect could last an adult lifetime?

Today's motion also calls for a refundable tax credit for private rental tenants. I support this call but I urge caution on how it is administered and what rate of tax relief would be provided. We must support those tenants who really need the support and not those who do not require such help. Again, there would be challenges on how we implement this, but I believe if we are serious about it then a way can be found.

The motion also calls for provision to be made for the delivery of at least 4,000 affordable cost-rental homes in 2022. I support this concept, but why do we have to stop at 4,000? In Dundalk, there are most likely in excess of 100 homes that are currently lying idle and vacant. While we do not know the full facts, it is suspected that the vast majority of these vacant homes are in the possession of banks and local authorities. I have raised this issue in the House before and I will raise it again. Why are these houses allowed to remain vacant? Surely the Government can make provision to bring these homes back into the housing stock. Many of these homes are in established residential areas where services such as schools, shops and public transport are already in place. Could the Minister explain why the banks are holding onto these properties and why local authorities are not putting tenants in them?

This merits further discussion in order to get to the bottom of the issue.

In my constituency office one of the major issues that is constantly raised is that of young couples not being able to get mortgages. One of the most frustrating aspects of this is that in many cases these couples are paying in excess of €1,500 per month in rent, yet when they apply for mortgages where repayments are normally in the region of €1,000 to €1,200 they are being refused by the banks. Why is this the case? If these couples can afford their rent, surely they can afford lower mortgage repayments. I have in the past called on the banks to recognise and give credit to those who are currently paying rent and are applying for mortgages that would mean lower repayments. I get frustrated.

The motion also calls for the provision of an indefinite term for tenancies. As I have said, this is commonplace in Europe and is something we must embrace. Why are landlords so reluctant to enter into long-term lease agreements? Some would argue that it could be greed on the part of landlords. This may well be true, but we must look at both sides. Why would a landlord not commit to, for example, a 20-year tenancy agreement if that agreement had any rent increases or decreases based on inflation? Surely this would lead to a win-win situation. The tenant would have the safe knowledge that his or her rent would only increase in line with inflation, while the landlord would also have the safety net of knowing he or she had a long-term tenancy linked to inflation. We must examine why this is not happening.

I know for a fact that only for mums, dads and family members there would be many more people homeless on the streets. Couples cannot afford to rent. They are on council housing lists because their income is slightly over the threshold. They are locked into the situation.

I would like to once more offer my support for certain measures in the motion, including the introduction of an emergency three-year ban on rent increases, the provision of a rent tax credit and the amendment of the Tenancy Act 2004 to provide for real tenancies of indefinite duration.

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