Peter Fitzpatrick (Louth, Independent) | Oireachtas source

In recent years Ireland's private rental sector has been used to plug the gap left by reduced social housing availability. The total number of occupied rental properties in the 2022 census was 513,704. However, while the ten-year housing plan may bring relief in the long term, more immediate action is needed to relieve the burden on renters. Combined with booming demand from private renters, properties are in short supply. The number of homes available to rent across the country remains low, meaning the Government's failure to deliver genuinely affordable homes is driving up rents. For example, there are 34 properties available to rent in the whole of County Louth on daft.ie, a county with a population of 167,607 people.

People are queuing down the street for a room. A total of 40% of private tenants in Ireland pay more than 30% of their net income on rent. They spend more on rent than they would if they had a mortgage. According to the Residential Tenancies Board's rent index report for the second quarter of 2023, substantial rent increases were recorded for the period from April to June 2023. In Meath, the average rent in new tenancies grew by 5% to €1,501 while in Louth it grew by 4.4% to €1,295. This is a 14.4% increase on the figure for the second quarter of 2022.

People are being crucified. In Ireland, many of the people now classed as homeless were evicted from the private rented sector and have been unable to find affordable housing again. The rental crisis is reflected in the numbers of people on Louth County Council's housing list and the number of people presenting as homeless. Louth is not alone in experiencing these issues. Demand has been driven by population increases, new household formations, inward migration, holiday lets and the proliferation of high-income industries such as tech. The dearer rents in Louth reflect the trend in the Dublin commuter counties, where rents rose 10.2% year-on-year, reflecting very low availability. Being faced with an acute shortage of rental homes, which shows little signs of abating, must serve as a wake-up call to the Government to work together to come up with innovative ideas for the provision of more homes.

The market is up, prices are up and the cost of materials is up. Many people are over the threshold for getting a council house but under the threshold for a mortgage. Bridging this gap, cost rental housing is available to applicants who do not have a net household income of more than €53,000 a year and are not in receipt of HAP, rent supplement or other social housing supports. However, it is so popular, the Minister for housing has admitted that it is oversubscribed, so supply remains an issue.

Approved housing bodies will continue to play a key role in the delivery of affordable housing and must be resourced and financed adequately to reflect their potential and the role they play in providing housing solutions. Any capital budget underspend must be carried forward in addition to new budget allocations and be made available for these much-needed housing projects. In fairness, last month Tuath Housing, in partnership with Louth County Council, the Department of Housing, Local Government and Heritage, the Housing Agency and the Housing Finance Agency, opened Louth's first cost rental homes. We need to see more funding allocated to these initiatives,which grant tenants long-term security of tenure, provide reassurance against rent fluctuations, and foster stability and a sense of community.

The housing crisis requires a multi-faceted, solutions-driven policy approach that recognises the needs of renters, first-time buyers, the homeless and landlords. Despite some progress being made on housing supply, we should be open to new thinking and new initiatives which will help address the current chronic housing shortage. Young people are under stress due to the uncertainty caused by a lack of housing options available to them, which will certainly impact on how they plan their lives. Some are considering emigrating. Overall, high prices to build or buy, relative to income, are pushing potential buyers out of the market and into rental accommodation, social housing, or emigration. The affordability gap is shocking, and we need to step in now. Housing affordability has also deteriorated for renters, noting that rents are now 40% higher. We need to ensure public money is not invested in the delivery of private rental-only developments that are unaffordable to rent and unavailable to buy. As well as seeking to address the immediate needs, we must also make financial provision so that younger generations are not left homeless or in poverty.

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