Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

I thank all the Deputies who put questions to me in respect of housing issues. I will first deal with rents generally, which covers a number of the questions. On the issue of a rent freeze, the Government has been advised in the strongest possible manner that it is unconstitutional to introduce a three-year freeze. I remember years ago, before an election, Opposition Members put forward a proposal for a commercial freeze. Subsequently, when people got into government, they could not do it because they were told it was unconstitutional. That was a previous government. It is easy to say things in opposition but, in this case, we are being told it is not possible.

The Minister is very committed to controlling rent price increases. There was the outgoing situation in July, at which time rent pressure zones, RPZs, were extended until the end of 2024 to prohibit any rent increase in an RPZ from exceeding general inflation, as recorded by the harmonised index of consumer prices, HICP. That measure significantly reduces the level of permissible rent increases for the estimated 74% of all tenancies that are in RPZs. In addition, until 2025, rent reviews outside RPZs may occur no more frequently than biannually and it remains the position that increases in RPZs can occur no more frequently than annually.

Housing for All commits to strengthening security of tenure, which was raised by Deputies, subject to legal advice, by legislating for tenancies of indefinite duration. Work in this area is under way. There has been increased funding for the housing assistance payment, HAP, to support new tenancies. An additional €2 million has been provided on top of what was there for the operational costs of the Residential Tenancies Board, bringing its funding to €11 million. A total of €10 million was allocated for the rental inspections programme for 2021 to assist local authorities to achieve inspection targets in respect of private rented accommodation. Since 16 July, the previous cap of 4% on annual rent increases was replaced, and rents on RPZs can only go up if necessary and in line with general inflation. As part of rent reform legislation due to be brought before the Oireachtas this session, the Minister, Deputy O'Brien, will seek to ensure effective rent controls are legally enforced in RPZs by introducing a cap.

As I said, rents in RPZs will only go up, if necessary, in line with the general inflation as recorded in the harmonised index of consumer prices to a maximum cap that is yet to be determined. In essence, we want to do everything we possibly can to keep rents down to the lowest level possible. When the Minister brought in the harmonised index element, it was done in good faith. Obviously, international commodity prices have gone through the roof since then and there is a general global inflation drive that now means the provision has to be reviewed to see whether we can get a realistic cap to keep the levels of rent increases down. Prices are very high - too high for people - in cities. Ultimately, it is a matter of supply. We have to get building supply up. We must build more houses, including affordable houses, houses for rent and social housing, to take pressure off the HAP system and the private sector system and give people proper security of tenure in social housing. Progress has been made this year, notwithstanding the lockdown. The sector is coming back strongly in terms of commencements and so forth, but we will wait and see until the end of the year to get the figures in respect of that.

Deputy Lahart made a very good suggestion in respect of the need for a transparent, tangible picture of the affordability landscape for people who wish to buy a house, so that they have some sense of what is happening over time. That is a very fair point.

In terms of strategic development zones, which Deputy Murphy raised, the Minister is moving on the issue of their expiration and making sure the right amenities are put in place in largely built-up areas. That is ongoing work and significant capital funding has been allocated to local authorities to facilitate the provision of such amenities in large housing conurbations. The money is there.

In terms of the Hammerson development on O'Connell Street, the problem in that regard has been going on for decades. At the moment, it is terrible in terms of the dereliction that is there. The Government moved to secure the national monument by buying it. There is always a balance to be struck in these situations. I have no interest in going back ten or 20 years. We need to transform O'Connell Street and make it a modern, thriving street in a modern city like Dublin and give opportunities for people while also bringing to the fore as part of that, which has never really happened, the incredible heritage the 1916 site represents. There are opportunities now but we cannot keep putting it on the long finger. I regret to say this to Deputy McDonald but I get the sense there is a huge element of politics in this. I get the terrible sense that here is another campaign to undermine what is being done. Many people were involved in this-----

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