Dáil debates

Tuesday, 5 December 2023

Renters: Motion (Resumed) [Private Members]

 

9:30 pm

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

I might begin by addressing a number of the points raised by Deputies. I thank all the Deputies for their contributions. If it is okay, I will revert to Deputy Bacik on the issue of Housing Agency valuations and market values.

Deputy O'Callaghan raised points about the RTB and the dispute resolution in respect of deposits. Legislation to improve the efficiency of the RTB, along with additional staffing, is being brought forward. The RTB provides a free mediation service. Moreover, there is going to be a statement of strategy from the RTB. All these measures are being brought in to try to improve its efficiency and interaction with renters. The board is also compiling a report on deposit retention, in line with an action in Housing for All.

A number of Deputies raised issues relating to the voids programme, something the Government and the Department of housing have accelerated considerably. Given the standards of refit now, it takes considerable additional time to get social housing up to the standard we now require in the context of energy performance and so on.

Many issues relating to rent increases in various parts of the country were raised. Daft.iewas mentioned, but properties are not always advertised on daft.ieand the asking price has at times proven to be a lot higher than the actual rents when the properties are registered with the RTB.

It is important to know that as well.

Deputy Connolly raised a point regarding public participation in respect of the planning Bill generally, which is something that is a cornerstone of our planning system. Even local authority staff are doing additional training in that regard in order to move out of that linear type of public consultation into a much more inclusive and immersive type of participation at development plan level, and at all levels. That is to be welcomed also.

I again thank all the Deputies for their contribution to the debate. As the issue was raised, the Minister, Deputy Darragh O'Brien, had to leave because he had other engagements this evening. That is just the nature of the work, unfortunately. That is why I am here to cover. A point was made regarding the publication of the homeless figures on the same day as "The Late Late Toy Show". It certainly was not deliberate or cynical at all. That was the day the figures were due to be published.

I reassure Deputies that every single decision the Government makes is fully and carefully considered. No one in the Government underestimates the scale of the housing challenge, which is considerable. We must ensure that we enhance housing supply as much as possible, including rental accommodation. A three-year rent freeze would have a significant impact on deterring medium and longer term supply of rental accommodation, with a knock-on negative impact on rent levels. It would act as a disincentive to landlords who are considering entering the rental market and as a spur for existing landlords to leave. We need a supply of homes of all types and tenures, in every place, and a wide-reaching plan to reform practically every aspect of our housing system. Housing for All is that plan and, despite the challenges we face, we see the plan is starting to bear fruit.

In addition, the correct course of action has been focusing on the additional measures announced last March to increase the supply of homes. Taken together, these measures accelerate supply, especially the supply of affordable rental properties, while addressing vacancy and encouraging more efficient use of existing building stock for housing purposes. The Government's Housing for All plan is having a real impact on increasing housing supply, with more homes now being built and bought than in a generation. Last year, we saw the greatest number of homes delivered since 2008, with new developments coming on stream. The most effective way to reduce and stabilise rents in the medium to long term is to increase supply and accelerate delivery of housing for the private and social rental sectors.

Ensuring the successful implementation of Housing for All is a key priority for the Government. This is underpinned by the unprecedented level of Exchequer investment in the housing budget for 2024. The coming year will see more than €5 billion of capital investment in housing, which is a record figure. We will continue to increase housing stock in the country while progressing major reforms in our housing system. Latest figures for housing completions and building commencements indicate strong construction activity and increased housing supply, which is critical to alleviating pressure. In the first nine months of this year, 26,547 homes have been commenced, which is a 16.6% increase on the same period last year.

Cost rental was introduced by the Government, which is a new form of housing tenure - the Vienna model was mentioned by some - via the Affordable Housing Act 2021. An additional 1,400 cost-rental units have been approved for funding of more than €250 million across nine local authority areas. The target is 18,000 homes by 2030. The new viability measure aims to activate extant planning permissions, particularly in the build-to-rent sector, and to make the resulting supply of homes more affordable. A new secure tenancy affordable rental, STAR, investment scheme aims to invest in the delivery of 4,000 plus cost-rental homes by 2027. The scheme will increase the supply of safe, affordable, cost-rental homes and expand the availability of the cost-rental model in high-demand areas throughout Ireland, which is crucial to making the rental market work for everybody.

The cost-rental eligibility thresholds have increased since 1 August 2023. These thresholds are now set at a net household income of €66,000 in Dublin and €59,000 in the rest of the country. There have been changes to the cost rental equity loan, CREL, to ensure that AHBs can continue to deliver at scale. The new cost-rental tenantin situ scheme is now also being rolled out. That scheme is available if the tenant household is not able to purchase the property from the landlord, is at risk of homelessness, and is not eligible for or currently in receipt of social housing supports.

We have continued our focus on bringing vacant and derelict homes back into use. Significant enhancements have been made to the vacant properties refurbishment grant with close to 4,700 applications received to date. The local authority home loan will be extended next year to allow for the purchase and renovation of derelict homes. Budget 2024 has also increased the vacant homes tax. We have responded to the financial viability challenges in the delivery of homes through funds such as Croí Cónaithe, under which the contracts have now been signed to deliver apartments for sale to owner-occupiers.

Housing for All commits to an annual update. The second annual update of the Housing for All action plan was published on 14 November. It identifies 30 priority actions and a further 84 supporting actions focused on activating and accelerating the delivery of housing. The updated action plan places a major emphasis for the remainder of 2023 and all of 2024 on measures to improve the viability of housing construction, including through the adoption of modern methods of construction and enhancing construction sector capacity.

The year ahead will see progress on changes to the planning system. A major Planning and Development Bill was published on 21 November. The current Planning and Development Act, which has operated since 2000, has undergone a complete fitness check to identify reforms to deliver key infrastructure in housing, transport and renewable energy. We have also initiated the process of updating the national planning framework, which will be accompanied by updated housing targets, taking into account up-to-date population numbers.

On 7 March 2023, the Government announced a range of mitigation measures to deal with a phased lifting of the winter eviction ban over a period from 31 March to 18 June 2023. One of the measures was to develop a legislative first right of refusal proposal, which would require landlords selling a property to first offer it for purchase to the tenant. Detailed and complex work has been ongoing in conjunction with the Office of the Attorney General to progress the implementation of the Government's decision. The Government is conscious at all times in bringing forward legislation such as this of the need to avoid unintended consequences insofar as possible. For example, it is not intended to unnecessarily impede or complicate the sale process for rental accommodation nor cause delays to the conveyancing process. The Government is also required to ensure, when formulating legislation, that it can withstand legal challenge. I apologise, a Cheann Comhairle, for coming out with a cold.

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