Dáil debates

Tuesday, 19 October 2021

Rental Sector: Motion [Private Members]

 

8:05 pm

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

In the time I have I will try to address some of the issues raised by Deputies in the debate. I thank Members for their contributions.

Deputy Nash raises a very valid point on the condition of houses where children are living in housing conditions with mould. That goes back to the issue of inspections, which is being addressed by the Government through additional resources this year. He also raised the issue of single households.

In response to the point raised by Deputy Cian O'Callaghan on staffing in the RTB, since 2019 some 41 extra staff have been sanctioned and its powers of implementation and enforcement have been enhanced. These posts include a number at senior executive level and a new director, a CEO, who will be appointed shortly. That appointment will be a welcome development.

HAP was raised by Deputy Boyd Barrett. A flexibility of 20% above HAP limits is available on a case-by-case basis and even more is available for homeless HAP to bridge the gap between €1,800 and €2,200 a month.

Deputy McNamara also raised inspections. In 2020, Covid restrictions meant that inspections could not take place for six months of the year. Only since July 2021 have restrictions been lifted. The target is 25% or a one-in-four chance for 2022. Additional funding of €10 million is available for that as well.

Deputy Joan Collins raises the issue of local authority apprenticeships. I agree with her. We always had a very good local government apprenticeship programme. That is one area that should be given consideration in the new apprenticeship plan. If it is okay, I will try to address everything else through the closing speech.

As the Minister, Deputy O'Brien, stated at the outset, to fully debate the wide range of rental issues put forward in the motion would take more time than is available to us this evening, so actions have to speak louder than words. As the Minister outlined, he plans to introduce urgent rental legislation to address key Government priorities in this area, and the implementation of the actions contained in Housing for All will help to deliver an adequate supply of accommodation onto the rental market and the wider housing market. The Government believes that everybody should have access to good quality housing to purchase or rent at an affordable price, built to a high standard and located close to essential services, offering a high quality of life. The programme for Government, Our Shared Future, sets out the priorities in the areas of housing over the next number of years which will be given impetus by a clear plan of action under Housing for All.

As already discussed, the Minister intends to bring forward urgent rental legislation to enhance tenancy protections and security of tenure for tenants. In line with the legal advice of the Attorney General, these laws will respect the constitutional property rights of landlords while enhancing the operation of rent control in rent pressure zones and providing for tenancies of indefinite duration. I wish to put on record that I have been assured by my Department and the Residential Tenancies Board, RTB, that the RTB’s rent pressure zone calculator operates in accordance with the Residential Tenancies (No. 2) Act 2021, which was enacted in July.

In the time remaining, I will address some of the key topics raised in the debate. In regard to rental standards, the motion calls for 25% of private rental tenancies to be inspected annually by the local authorities. As set out in Housing for All, the target for inspection of rental properties is set at 25% of all private residential tenancies. As I stated, a total of €10 million in Exchequer funding will be made available to local authorities in 2022 to help them to reach this target and, again, this was highlighted by a number of Deputies, including the particular case study highlighted by Deputy Nash.

The issue of an NCT-type certification for rental dwellings has been raised by a number of bodies in the past, most notably by Threshold. However, establishing the rolling out of such a certification system for rented dwellings would have very significant resourcing implications for local authorities and the Local Government Management Agency. Furthermore, the potential impact on the supply of rental accommodation, at least initially, cannot be underestimated. An unintended consequence of such a system is that it could have a detrimental effect on supply in the rental market, resulting in an increase in rents and homelessness. However, there are undoubted potential merits in enhancing the current inspection system. The Department is working continuously with the sector to improve the system so high-quality homes can be made available to rent across the country, and it is investigating the feasibility of a future certification-type system.

In regard to student accommodation, the motion calls for the Government to work with all higher education institutions to ensure the delivery of affordable student accommodation. The Government is doing precisely that and is acutely aware of the challenges facing students as they return to third level. Approximately 40% of students who rent accommodation do so in purpose-built student accommodation, with 60% in the wider private rental market. Fundamentally, the challenge is one of supply. As a country, we need to dramatically increase the supply of all types of housing and accommodation, including student accommodation. That is why the Government has launched Housing for All: A New Housing Plan for Ireland, led by the Minister, Deputy O'Brien. This plan sets out a series of actions which will be delivered to fix the housing crisis. Housing for All is backed by the largest ever housing budget in the history of the State to transform our housing system, in excess of €20 billion. Housing for All contains a commitment to support technological universities to build purpose-built student accommodation, where such requirements exist. In addition, there is a commitment to legislate to enable technological universities to borrow from the Housing Finance Agency and, again, this will help to increase availability.

My Department and the Department of Further and Higher Education, Research, Innovation and Science have been engaging on a number of issues, including privately owned student accommodation being used for other purposes. This is deeply disappointing and runs contrary to the national student accommodation strategy. There have been a number of incidents where planning permission has been sought and granted which facilitates the change of use of student accommodation on a temporary basis to short-term visitor accommodation. In response to this, the Minister, Deputy O'Brien, has issued guidance to local planning authorities on this matter by way of a circular letter. This guidance reminds planning authorities of the critical need for purpose-built student accommodation to be available to serve the needs of the higher education sector. In essence, student accommodation should be retained for students.

The Government has also taken measures to address affordability. Student accommodation rents are controlled in rent pressure zones. For tenancies created on or after 9 August 2021, the Residential Tenancies (No. 2) Act 2021 restricts the total amount that anyone is required to pay a landlord by way of a deposit or an advance rent payment to secure a tenancy to no more than the equivalent of two months’ rent, that is, any deposit cannot exceed one month's rent and any advance rent payment cannot exceed one month’s rent. Previously, families were required to pay a lump sum each term, often in the range of €2,500 to €3,500. The Act also limits termination notice periods in respect of student-specific accommodation so no more than 28 days' notice is required to be given by students.

In conclusion, housing supply has unfortunately been impacted by Covid-19. The periods of lockdown since early 2020 have reduced construction activity and placed limitations on the ability to conduct normal market activity. However, the ongoing removal of Covid-19 restrictions is supporting a full reopening of the housing market and resumption of construction activity. This, along with the increases in supply that will be delivered by Housing for All, will ensure that housing market activity normalises and that supply increases to meet the demand as the plan is implemented. CSO data regarding new completions for quarter 2 of 2021 show that the rate of completions is increasing and the effects of periods of lockdown are abating. Quarter 2 of 2021 data record 5,021 new dwelling completions, which is 55.5% greater than the 3,229 completions of quarter 2 of 2020. Data on commencements are also showing significant increases over this period.

The record investment by the Government will happen in parallel with major measures and reforms committed to under Housing for All, building on the Government's measures to increase the delivery of social, affordable and private market housing over the past 16 months. Housing for All will transform our housing system and remove the constraints that can lead to delays and blockages in the provision of housing. In particular, the actions set out under pathway 3 of the plan, the pathway to increasing new housing supply, will create the environment needed to enable the supply of more than 300,000 new homes by 2030, meaning an annual average of at least 33,000 homes. The €4 billion in Exchequer investment, supplemented by Land Development Agency funding and Housing Finance Agency lending, will ensure that 4,130 homes are made available for purchase and cost rental, a new form of affordable rental tenure in Ireland which was championed by the Green Party, and that 9,000 new-build social homes are provided, meeting the 2022 targets in Housing for All.

The Government is keenly focused on helping everybody to secure a roof over their head. Providing enhanced tenancy protections, assistance and considerable funding to help renters feel secure in their homes is uppermost in our priorities and will continue to be into the future.

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