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

I acknowledge the spirit of the Bill and its genuine attempt to improve circumstances for tenants at a time of undersupply in the residential rental sector. The Government will not oppose this Bill and commits to examining the positive ideas contained therein in the context of progressing its own rental reforms later this year. Some of the measures proposed in the Bill have been provided for in Government legislation or have been committed to under the Government's Housing for All: A new Housing Plan for Ireland. Other proposals have been considered in the context of previous Private Members' Bills and did not progress for legal and policy reasons. That said, the Government is open to considering constructive and positive ideas from all quarters. If a proposal has merit, the Minister, Deputy Darragh O'Brien, will do his best to progress it while respecting the legal constraints that may apply.

As Deputies will know, Housing for All: A new Housing Plan for Ireland is the Government's housing plan towards 2030. It is a multi-annual, multibillion euro plan that will improve Ireland's housing system and deliver more homes of all types for people with different housing needs. The Government's overall objective is that every citizen in the State should have access to good-quality homes to purchase or rent at an affordable price, built to a high standard in the right place and offering a high quality of life.

Too many people have been caught in an unaffordable rent trap. The Government has put renewed focus on home ownership, the preferred tenure choice of most tenants, but we are also completely focused on continuing to enhance tenancy protections. The Minister has introduced five rental Bills since taking office last year and plans to progress further rental reforms later this year. The residential rental sector provides many homes and tenants will need to be better protected into the future. The supply of private and social housing is increasing and cost-rental and affordable housing is now coming on stream. We aim to scale up cost rental to a level that significantly impacts on the overall private rental market and offers competition at more affordable rent levels to help reduce the prevailing high market rents demanded of tenants.

The Government recognises that rent increases are causing significant affordability issues, particularly for those with low incomes and the more vulnerable of our citizens. The Residential Tenancies (No. 2) Act 2021 introduced measures in July to better protect tenants against affordability challenges by extending rent pressure zones, RPZs, to the end of 2024 and prohibiting any rent increase in an RPZ from exceeding general inflation as recorded by the harmonised index of consumer prices. This measure significantly reduces the level of permissible rent increases for the estimated 74% of all tenancies in RPZs. In addition, until 2025, rent reviews outside of RPZs can occur no more frequently than biannually. It remains the position that rent reviews in RPZs can occur no more frequently than annually. The forthcoming Government Bill will further enhance the security of tenure and will re-examine the operation of RPZs to ensure that rent controls are effective in areas with the highest and fastest growing rents. The most vulnerable tenants impacted by Covid-19 continue to be legally protected from rent increases and eviction.

The Government is focused on building on rental reforms introduced by the Minister in the past year and on rental reforms implemented in recent years. A number of targeted measures and initiatives are being developed to provide better security of tenure and greater rent certainty for tenants, as well as enhancing the supports and services available to both tenants and landlords, through the Residential Tenancies Board, RTB, in particular, to facilitate the development of a more vibrant and sustainable rental sector. Inter alia, these initiatives include the recent extension of rent pressure zone protections to the end of 2024; the prohibition of rent increases exceeding any general inflation, as recorded by the harmonised index of consumer prices, which will be re-examined in light of the prevailing inflation rate; the bringing forward of legislation to address long-term security of tenure, including by providing for tenancies of indefinite duration, subject to legal advice; enhancing tenancy protections for those living in dwellings affected by a receivership; amending the Residential Tenancies Act to provide for default conciliation as first steps in the RTB's dispute resolution process; increasing enforcement of the registration of tenancies by the RTB; the development and publication of a standard tenancy agreement by the RTB; and reviewing the recommendations of the working group on tax and fiscal treatment of landlords, which was chaired by the Department of Finance.

The necessary legislative change will be progressed through the housing and residential tenancies Bill 2021, which is expected to undergo pre-legislative scrutiny by the end of this Dáil term. As I said, the forthcoming Government Bill will further enhance security of tenure and re-examine the operation of RPZs to ensure that rent controls are effective. I intend to take account of pre-legislative scrutiny reports by the Oireachtas Joint Committee on Housing, Local Government and Heritage following its consideration of the general scheme of the Government's Bill later this year and to publish the Bill as a matter of priority. In developing legislative proposals, it is important any new legal measures avoid the risk of undermining stability and confidence in the rental sector and of negatively impacting on the existing and future supply of rented accommodation and the wider economy. We cannot undermine or damage the future capacity and attractiveness of the rental sector for tenants or landlords.

That said, the Government understands and appreciates the motivation and bona fides behind the Bill. I reiterate the Government will not oppose it and will examine its positive elements in framing the Government's own rental reforms. We need to record in the House that the Private Member's Bill contains technical and practical operational shortcomings, with some provisions likely to face significant risk of a legal challenge and others highly likely to have a detrimental effect on the supply of rental property. The rationale and motivation behind the proposals tabled is appreciated and the Bill in its entirety will be examined by departmental officials. In doing so, recognition must be given to the fact that 70% of landlords have just one rental property, while 86% have just one or two properties. Recognition must also be given to the fact many landlords are leaving the market, with more than 3,500 having done so since 2019. Every action the Government takes needs to be balanced to avoid an unwanted reaction in the rental market. We need a sustainable supply of rental accommodation to meet demand and we need rental levels to become more affordable.

The Government's bona fides can be accepted when it comes to our efforts to develop and enhance the residential rental sector. It can also be accepted that developing the rental sector is an important goal for the country and doing so will be paramount to avoid unintended consequences for any new Government measures. This Government and its predecessor have not been found wanting in coming forward with necessary tenancy protections, particularly in light of the challenges posed by the Covid-19 pandemic. It will continue to be important to balance the rights and responsibilities of both landlords and tenants. The vast majority of small, independent landlords are good landlords; they look after their accommodation and their tenants. Less than 2% of all tenancies end up in a dispute before the RTB. The Government will continue to work to enhance the protections under the Residential Tenancies Acts and to invest in services provided by the RTB and Threshold.

I accept there is more that can be done to enhance the private rented sector.

That is why the Government will introduce the housing and residential tenancies Bill 2021 shortly to build on the progress to date. Deputies will have the opportunity to progress and discuss any new proposals or ideas in the context of the forthcoming Government Bill. The proposals outlined in this Private Members' Bill will be carefully examined in the context of the Government's forthcoming housing and residential tenancies Bill with a view to providing for any positive and legally permissible change. In this spirit, the Government will not oppose the Second Stage reading of the Bill.

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