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

Ba mhaith liom buíochas a ghabháil leis na Teachtaí go léir. I thank all the Deputies. I do not have time to respond to all the issues raised.

Deputy Gino Kenny raised the issue of income thresholds. The review is now complete and the Minister of State, Deputy Peter Burke, and the Minister, Deputy Darragh O'Brien, are considering the findings with a view to making recommendations. Deputy Canney raised the issue of the RTB in respect of systems of payment. We will take that up again. I apologise again because I cannot address all the issues raised.

I thank Deputies for their contributions. I am grateful for the opportunity to close the debate for the Government on People Before Profit's Rent Reduction Bill 2022. The Government is opposing the Bill for the reasons outlined by the Minister of State, Deputy Peter Burke, earlier.

The Government is keenly aware of the challenges that tenants face. We know that rents are unaffordable for many people and that rent increases can exacerbate financial difficulty. We know that many would prefer to own, and not rent, their home. We know that people want a secure home. We know they 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.

Increasing the supply of housing of all types is the key to relieving the pressure on the existing rental stock. The Government's plan Housing for All sets us on a path of delivering 300,000 new homes between now and the end of 2030, including 90,000 social homes, 36,000 affordable-purchase homes and 18,000 cost-rental homes, as referred to by Deputy Joan Collins. It is a plan with genuine ambition, guaranteed investment and fresh ideas to deliver housing for people to create a long-term sustainable housing system. Housing for All is backed by €20 billion in State investment in housing to the end of 2026. It gives certainty and stability to those who want to finance and build homes. To deliver housing at the substantial scale we need across the country, capital from all sources, including private investment, is required. Housing for All focuses on tackling supply and affordability issues in the rental market. Guaranteed State investment in housing of over €4 billion per year is aimed at increasing supply, and the increased supply of all properties, including purpose-built rental accommodation and cost-rental accommodation, will relieve the pressure on the existing rental market stock.

Through a range of measures, we are incentivising the supply of different tenures – social, affordable and private rental, including cost rental, and private ownership. The investment of €4 billion in Exchequer funding in 2022 will provide approximately 9,000 new-build social homes and help to fund the provision of 4,100 affordable homes to rent or buy.

Affordable-purchase schemes are coming on stream. These schemes, along with the first home shared equity scheme, will increase access to homes for first-time buyers. Housing for All is working. The Government is making progress. The numbers of new dwellings, completions, commencements, permissions, home purchases, first-time buyers and mortgage draw-downs are all increasing. This year, the Government's target is the delivery of 24,600 homes. In the year to the end of March 2022, 22,219 new homes were completed. We received 44,491 planning permission applications for residential units in the same period. Commencement notices for the construction of almost 30,233 new homes were received over the past 12 months. This is 18.5% higher than in the previous 12-month period, June 2020 to May 2021. Notices for 2,746 homes were received in May alone.

Some €250 million has been allocated for a local authority home loan, which is available for first-time buyers and other eligible applicants for the purchase of new or second-hand residential properties or for self-builds. Eligible applicants can borrow up to 90% of the market value of a property or purchase price.

The first home shared equity scheme was launched last week, on 7 July, and will support approximately 8,000 affordable home purchases by 2025, primarily for first-time buyers in the private market, with overall funding of €400 million. The scheme delivers on the programme for Government commitment to progress a State-backed affordable home purchase scheme to promote homeownership.

The Government has acknowledged that many families are currently facing housing affordability issues. To address this, it has committed under Housing for All to the delivery of 18,000 cost-rental homes by 2030, or an average of 2,000 homes per year, which will make a genuine difference for families experiencing affordability issues. The intention is initially to target cost rental in more urban areas where the affordability issues are most acute and where the most significant reductions in market rents can be achieved. Not only does cost rental provide security of tenure but it also targets rents at a discount of 25% below market rents for comparable units. As the rents are based on the cost incurred in the provision of a cost-rental home, State subventions can help to reduce starting-cost rents that are ultimately charged to the tenants, taking into account long-term maintenance needs. The Government has put in place a cost-rental equity loan scheme to assist approved housing bodies with cost-rental delivery and local authorities can avail of supports from the affordable housing fund to deliver cost-rental units.

Ireland's first 50 purpose-built cost-rental homes were completed in quarter 1 of 2022 at Enniskerry Road, Stepaside. These were delivered by Tuath and Respond approved housing bodies in collaboration with Dún Laoghaire-Rathdown County Council and with €4.5 million in funding provided through the serviced sites fund, the precursor to the affordable housing fund. The cost-covering rent for the two-bedroom apartments is €1,200 per month, which represents a very significant discount on market rents in the area for the same type of unit. To date, approval in principle has been confirmed for approximately 900 cost-rental homes to be delivered by approved housing bodies under the cost-rental equity loan scheme in the period to 2023.

The Government has committed €70 million for cost-rental equity loan scheme funding this year. The scheme funds 30% of the cost of acquiring cost-rental homes. The remaining 70% is also committed by the State through loans from the Housing Finance Agency. This commitment is given on a multi-annual basis in line with the Housing for All targets.

The first 65 cost-rental homes under the scheme were tenanted in Ireland by Clúid in 2021, with 25 in Taylor Hill, Balbriggan, and a further 40 at Barnhall Meadows in Leixlip, County Kildare. Both developments delivered cost-covering rents at least 40% below comparable open-market prices. The second quarter of 2022 saw a further 119 cost-rental homes tenanted at Barnhall Meadows in Leixlip, Parklands in Citywest, The Paddocks in Newbridge and Kilcarbery Grange in Clondalkin. Funding from the cost-rental renewal scheme covers up to 30% of the capital costs of each development. The Housing Finance Agency provides support for the remaining 70% of capital costs. This will bring the number of cost-rental homes in Ireland to 234 less than 12 months since the passing of the Affordable Housing Act last July. As the model continues to be rolled out, it will provide long-term secure rental accommodation for thousands of renters. It will also add certainty to the rental market and provide more options for people. It is also expected that the development of the cost-rental sector will have an impact on the wider rental market, reducing rents over the longer term.

Any proposed measure that would impact on private property rights requires detailed consideration and scrutiny, having regard to the provisions of Article 43° of the Constitution and associated legal complexities. Rent pressure zones are a targeted instrument the Government has enhanced over the past 12 months, taking into consideration rising inflation, whereas the rent restriction proposed in the Private Members' Bill would apply to all areas regardless of the level of rent pressure.

The Government will oppose the Bill. I recognise the intent is to help tenants. The Government also seeks to help tenants. I assure the Deputies the programme for Government recognises the important role the private rented sector plays in housing many people and will continue to do so. The Government is addressing the challenges in the sector, including with standards. The Department continues to work hard with the Residential Tenancies Board to continue to strengthen its function and delivery of assistance to tenants and landlords. The board is highly responsive, particularly in the fast-moving context of Covid-19 in recent times, to the needs of tenants. The Government is continually providing up-to-date assistance. I record the Government's sincere gratitude to the RTB for its continuing efforts in this regard and for the help of MABS, Threshold and all other NGOs, approved housing bodies and local authorities that help to deliver in addressing the evolving housing crisis.

The Government is committed to supporting an adequate supply of residential tenanted accommodation to ensure equity and fairness for landlords and tenants alike. Improving standards, security and affordability for renters is a priority for me and the Government. We are making significant changes in recognition of the fact that tenants continue to face challenges in the rental and housing markets. Our approach to any necessary legal change will continue to be carefully balanced.

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