Malcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

I thank all Deputies for their contributions. I am grateful for the opportunity to close the debate for the Government on Sinn Féin's Ban on Rent Increases Bill 2021. I have listened intently to the contributions of Deputies since my arrival in the Chamber.

As the Minister outlined, the Government is submitting a timed amendment to this Bill and we will consider it again on Second Stage in 12 months' time when the impact of the new RPZ rent increase restriction provided in the Government's Residential Tenancies (No. 2) Bill 2021, which passed unanimously last night in Seanad Éireann, will have been felt on the ground. The Government expects that the switch from a straight 4% per annum rent increase restriction in RPZs to the new restriction where any rent increase cannot exceed general inflation will be impactful on the ground.

The Government is keenly aware of the challenges tenants face. We know rents are unaffordable for many people and that rent increases can exacerbate financial difficulty. We are aware that many people would prefer to own and not to rent their home. We are also aware that people want a secure home. In addition, we know we need a residential rental sector with an adequate supply to ensure rents are affordable.

The Government has implemented and will continue to implement measures to promote equity, fairness and security of tenure in the private rental sector. With the support of Government colleagues and acting on the evidence produced through research by the Economic and Social Research Institute, ESRI, the Minister introduced significant tenancy protections in the Residential Tenancies and Valuation Act 2020, the RTVA, with effect from 1 August 2020. The Act introduced permanent and temporary protections for those tenants facing rent arrears and, as result, are at risk of losing their tenancy. While those temporary protections have been subsumed under the Planning and Development, and Residential Tenancies Act 2020, the PDRTA, permanent protections under the RTVA still apply, requiring landlords to serve both the Residential Tenancies Board, RTB, and the tenant with a 28-day warning notice, increased from 14 days, seeking payment of rent arrears and any related notice of termination.

Upon receipt of the warning notice, the RTB acknowledges receipt to the landlord and the tenant, provides information to the tenant to enable him or her to get advice from the Money & Budgeting Advice Service, MABS, and offers assistance to the tenant in obtaining this advice.

Any notice of termination grounded on rent arrears will be invalid if the rent arrears warning notice or the related notice of termination itself had not been served on both the RTB and the tenant. The aim is to ensure that early action is taken to address rent arrears to the benefit of both the tenant and the landlord.

The tailored approach in the Planning and Development, and Residential Tenancies, Act protects tenants from imminent tenancy termination caused by Covid-19-related rent arrears. The Planning and Development, and Residential Tenancies, Act introduced similar temporary residential tenancy protections to those under the Residential Tenancies and Valuation Act to cover the period from 11 January to 12 July 2021, while recognising the constitutionally protected property rights of landlords. The most vulnerable tenants in rent arrears due to Covid-19 and at risk of losing their tenancy can gain enhanced tenancy protections under the Planning and Development, and Residential Tenancies, Act if they follow the procedures under that Act and make the necessary declaration. The Planning and Development, and Residential Tenancies, Act temporarily protects tenants from any rent increases and any termination notice on grounds of rent arrears.

In addition to making the necessary written declaration to the RTB and his or her landlord under the Planning and Development, and Residential Tenancies, Act, a tenant is required to immediately request the RTB to assist him or her to obtain advice from the MABS and serve a written notice on his or her landlord requesting a consultation to make an arrangement for the payment of the rent. The aim is to set tenants and landlords on the right track to resolving any rent issues arising. The Planning and Development, and Residential Tenancies, Act protections against rent increases are available to the most vulnerable tenants and, under the Residential Tenancies (No. 2) Bill 2021, these protections will continue to be available until 12 January 2022.

In addition to significantly reducing the level of any rent increases in RPZs, as detailed by the Minister, the Bill will also restrict the level of upfront payments required of tenants to a total value that does not exceed two months rent to cover any deposit and one month rent in advance.

Any proposed measure that impacts on private property rights requires detailed consideration and scrutiny, having regard to the provisions of Article 43 of the Constitution and the associated legal complexities. During the recent drafting of the Emergency Measures in the Public Interest (Covid-19) Act 2020, the Residential Tenancies and Valuation Act 2020, the Residential Tenancies Act 2020, the Planning and Development, and Residential Tenancies, Act 2020, the Residential Tenancies Act 2021 and the Residential Tenancies (No. 2) Bill 2021, the Office of the Attorney General has advised on the complex legal issues arising with any limitation of property rights under the Constitution. The need for careful targeting of enhanced legal protections to those most vulnerable tenants for a limited timeframe and for the balancing of the legal rights of both tenants and landlords informed the drafting of these Acts.

Deputy Ó Broin’s Bill does not show any evidence of appropriate policy balancing within the proposal. I am confident that the restrictions provided for in the Residential Tenancies (No. 2) Bill 2021 constitute the correct and balanced policy response and we need to give it time to bed in to the sector in order to have any effect on rents.

I wish to emphasise that the programme for Government recognises the important role that the private rented sector plays in housing many people and will continue to do so into the future. The Government will address challenges in this sector, including standards, security and affordability for renters. The measures under the Residential Tenancies (No. 2) Bill 2021, passed by Seanad Éireann last night, provide a timely, effective and proportionate response to help the most vulnerable tenants impacted by Covid-19 and to help all tenants in rent pressure zones by requiring that any rent increase does not exceed general inflation. The Bill helps all tenants outside RPZs by maintaining the frequency of rent reviews to no more than every second year. Landlords will also benefit from the rent certainty provided for under the Bill into the medium term.

The Bill provides for the enhanced tenancy protections under the Planning and Development, and Residential Tenancies, Act to continue until 12 January 2022. As a result, rather than the usual 28 days notice that applies for a termination of notice grounded on rent arrears, a 90-day notice period applies. The earliest termination date allowed for those most vulnerable tenants will be 13 January 2022. Rent increases are also prohibited for relevant tenancies until 13 January 2022, with no backdating allowed.

My Department will work hard with the RTB to continue its change management programme to strengthen its functions and its assistance to tenants and landlords. The RTB has been highly responsive, particularly in the fast moving context of Covid-19, to the needs of tenants and Government in continually providing up-to-date assistance. I wish to record the Government’s sincere gratitude for its continuing efforts in this regard and for the help of MABS, Threshold and all NGOs, approved housing bodies and local authorities that help in addressing the evolving housing crisis. The Government is committed to supporting an adequate supply of residential rental accommodation by ensuring equity and fairness for landlords and tenants alike. Improving the standards, security and affordability for renters is a priority for me, the Minister and the Government. We are making significant changes in recognition of the fact that tenants continue to face persistent pressures in the rental and housing markets. Our approach to change must continue to be carefully balanced.

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