Peter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

I thank the Deputies for their comments. I cannot accept amendment No. 10, which proposes to impose various reporting requirements on the Minister. My officials, the Residential Tenancies Board and the Minister, Deputy Darragh O'Brien, keep the Residential Tenancies Acts under constant review to ensure the provisions, including the grounds for termination and associated notification and procedural requirements, are fit for purpose in a modern rental market.

The Residential Tenancies (Amendment) Act 2019 made substantial changes to provisions in regard to security of tenure. It implemented a number of amendments to the tenancy termination provisions in sections 34 and 35 of the 2004 Act to make it more difficult falsely to cite or rely on any of the grounds for termination set out in section 34. Such invalid citation is now dealt with as improper conduct by a landlord for the purposes of Part 7A of the 2004 Act, under which the RTB is empowered to sanction such improper conduct. Where a former tenant provides his or her contact details for such purposes, the landlord is required to offer him or her a reletting of a rental dwelling where, for example, a sale of rental accommodation does not conclude within nine months of the termination, the landlord or family member moves out of the rental dwelling within 12 months of the termination or the necessary substantial refurbishment or renovation has concluded. If a landlord does not offer to relet in such circumstances, he or she is liable for a sanction of up to €30,000, to be imposed by the RTB. The periods of notice to be given by a landlord when serving notice of termination to a tenant, in accordance with table 1 in section 66 of the principal Act, were substantially increased in the Residential Tenancies (Amendment) Act 2019, up to 224 days where a tenant has been in occupation for eight years or more.

Section 16(3) of the 2019 Act provides that:

The Minister shall- (a) not earlier than 2 years and not later than 3 years after the coming into operation of subsection (1), commence a review of the operation of the amendments of section 66 effected by that subsection,

(b) not later than 6 months after the commencement of the review, prepare a report in writing of the findings of the Minister resulting from the review and his or her conclusions drawn from the findings, and

(c) cause a copy of the report referred to in paragraph (b)to be laid before each House of the Oireachtas.

This section was commenced on 4 June 2019. Accordingly, the Minister is obliged to conduct a review of the extended notice periods before 4 June 2022. Furthermore, this Bill, as outlined on Second Stage, provides for the introduction of tenancies of unlimited duration six months after the passing of the Bill. This will significantly increase security of tenure and simplify the operation of the Residential Tenancies Acts for both landlords and tenants.

The Minister will ensure that the grounds for termination are kept under constant review. The Government is acutely aware of the challenges faced by renters in finding accommodation in a situation of constrained supply of residential accommodation for rent. Paragraph (b) of the proposed amendment calls for a review of the operation of rent increase restrictions in rent pressure zones with a view to introducing any necessary reform. Section 3 of the Bill, as passed by Seanad Éireann, provides for the reform the Government considers necessary at this time, including a requirement for a review of the operation of the updated rent increase restrictions in RPZs, incorporating the new cap of 2% per annum pro ratawhere high-cap inflation is higher. This review must commence not earlier than 12 months and not later than 15 months after the commencement of section 3 of the Bill. Not later than three months after the commencement of the review, the Minister is required to make a report in writing to each House of the Oireachtas of the findings and conclusions of the review.

Regarding paragraph (c) of the proposed amendment, I think we can all agree that the Residential Tenancies Acts are complex. My Department and the Office of the Attorney General are conscious of the need to simplify the legal framework and endeavour to streamline the legal text of any provision in the Acts when amendments are being drafted. A project to simplify and consolidate the Acts would be a substantial task at this point in time. Moreover, further legislation is planned to amend the 2004 Act and is taking priority at this juncture. The Law Reform Commission keeps up to date its online, unofficial consolidation of the Residential Tenancies Acts, which is a useful resource and reference point for stakeholders. The RTB also provides up-to-date information on the Acts on its website. The information is provided in a user-friendly manner and is kept under constant review.

Deputies expressed a number of frustrations with the progress being made. I genuinely believe that an increase as high as 48% in commencement notices year-on-year to October 2021 is not insignificant. The latest quarter-on-quarter increase of 60% is very significant. As I have pointed out at every step of the way, there is huge hope for people in seeing supply increasing at pace, notwithstanding the difficult year this has been, with the construction sector closed for the earlier part of it. The numbers are very strong, there are diggers on site and builders building houses. That in itself will provide more supply right into the marketplace and will assist tenants. Everyone in this House, including me, is meeting very vulnerable people in very difficult situations who are trying to find accommodation or hold on to the accommodation they have. That is what this legislation is about. It is trying to limit the increase in rental inflation.

It can be very frustrating to see smaller landlords, whom we need, leaving the marketplace, as Deputy Michael Healy-Rae referenced. Some 86% of landlords in this country own only one or two properties. However, Deputy Ó Broin's party proposed to impose charges on those landlords in its pre-budget submission. Looking at the taxation measures in that submission and taking into consideration current taxation rates, including property taxation, to bring in another tax of €400 for every unit an individual rents out would be a very difficult measure at a time when supply is seriously constrained in the private rental sector. I am not sure increased taxation is the answer at a time when supply is so constrained, we are trying to get more small-time landlords into the market and we are trying our best, as a Government, to increase supply through the actions contained in Housing for All.

The housing need and demand assessment is a powerful tool that surveys all 31 local authorities in order to frame the demand for the next six years within their areas. The assessment found that nine local authorities need to increase their housing output over the next six years by more than 100% and a further ten must increase their output by more than 250%.

The key thing is that all of those local authorities have to submit their plan, which is not in yet, to the Department by 17 December. This will be on how they will meet the framework and the targets contained within them. That programme will give us more information than ever before on the type of tenure that is needed. What are the main blockages in our major cities and in provincial Ireland? What type of tenancies do we need? That will assist us in making decisions within the Department as well. We are working hard to try to unlock and get the types of residences that are needed in the right places. That is key. I want to be clear, and my view is solid, that we need to keep increasing supply. In any marketplace, the basic laws of economics are that when demand outstrips supply, prices will go up. We are focused singularly across Government on trying to get supply up. Our investment of €4 billion in multi-annual funding is just what we need to meet the Economic and Social Research Institute, ESRI, requirements of 33,000 units per annum.

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