Dáil debates

Tuesday, 12 December 2023

Residential Tenancies (Deferment of Termination Dates of Certain Tenancies) (No. 2) Bill 2023: Second Stage [Private Members]

 

8:00 pm

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

I will raise a couple of points before I read the closing statement. I want to thank Deputies for the points they have raised. There is nothing additional to say that is not in the closing comments. I will refer to some points that have been raised by Deputy Cian O'Callaghan. In Housing for All, there are measures to enhance family support, prevention and early intervention services for children and families. This takes a multi-agency and collaborative approach to enhance tenancy sustainment supports to families who are experiencing long-term homelessness and maintain homes. That is in collaboration with the Department of children and Tusla.

Our Department is leading the development of a pilot scheme for housing-led support accommodation for families with complex needs in Galway city and county. That was established in June this year. The steering group comprises both local authorities, the HSE and Tusla. That pilot is to commence in the first quarter of 2024.

A point was raised in relation to local connection. We are in the process of considering new regulations regarding local connection criteria to manage homeless accommodation and ensure exit pathways for all service users. Again, we are cognisant of the need to mitigate the risk of rough sleeping. A number of similar points were raised in terms of unintended consequences of this particular Bill, such as landlords exiting the market. Other points were raised that made comparisons with other European countries. They are all pretty much addressed in the closing speech.

I wish to confirm that the Government will be opposing the Bill tabled by Sinn Féin for debate this evening. The Government decided on 7 March this year that the winter eviction ban would end as planned on 31 March with notices of termination taking effect on a phased basis until 18 June, and that a focus on additional new supply is the best way forward. It was brought in as a short-term emergency measure but did not have the desired impact of reducing homelessness numbers.

The Government decided in March to adhere to the Residential Tenancies (Deferment of Termination Dates of Certain Tenancies) Act 2022, passed by the Houses of the Oireachtas less than five months earlier in October 2022, which provided for the winter eviction ban and its conclusion by 18 June. The decisions to provide for and subsequently not to extend or replicate the ban were not taken lightly by the Government. We remain of the view that adhering to the original legal provisions and allowing the winter eviction ban to lift in an orderly manner was the correct decision. If we were to do as Sinn Féin asks in this Bill and introduce this eviction ban we would only serve to shrink the number of homes available to rent. That is of no help to renters in short, medium or long term.

Under Housing for All, the Government is committed to increasing supply and protecting renters while trying to keep small landlords in the system. Any merit in introducing an eviction ban in the short term would be countered in the medium to longer term by a significantly reduced housing supply for rent. The level of rents charged would rise in the context of a constrained supply of new rental accommodation. Landlords would continue to exit the market and the signal would be to avoid any further investment in the sector.

Research by the Society of Chartered Surveyors Ireland indicates a net loss of 13,500 existing rental units last year alone. We know there are people who are facing significant housing challenges, including renters. At the crux of everything this Government is doing is the need to increase the supply of housing. An eviction ban would not do that. We need to retain small landlords in the sector while increasing housing stock for purchase and rent by private renters, cost renters and social renters, as well as supporting homeownership. We need to continue to scale up student-specific accommodation, cost-rental accommodation and social housing. We need to transfer a proportion of short-term lets to longer term rentals.

The updated Housing for All action plan includes action 2.1, which is to review the operation of the private rental sector and report on policy considerations. The review takes into account the significant regulatory changes over the past several years and the Government will consider and act on its recommendations. The review will draw conclusions on how our rental market could provide an efficient, viable, affordable, safe and secure framework for both landlords and tenants. This review will be finalised as early as possible. It will be essential in properly planning future policy for the residential rented sector, including implementing measures to support both landlords and tenants.

I wish to assure Deputies that the Government understands the challenges faced by people in securing accommodation. The annual update of the Housing for All action plan identifies 30 priority actions to activate and accelerate the delivery of housing. A major emphasis for the remainder of the year and 2024 will be on measures to improve the viability of housing construction, including through the adoption of modern methods of construction, MMC, and enhancing construction sector capacity. The year ahead will also see substantial progress being made in reforming the planning system. The action plan, which was updated on 14 November, will ensure that the focus remains on the fast and effective delivery of the schemes and initiatives launched under Housing for All. This, together with the record €5.1 billion in capital investment allocated to housing delivery in budget 2024, reaffirms this Government’s commitment to sustaining the progress made to date.

Housing for All is beginning to work. Housing for All is successfully supporting a significantly increased supply of new homes, with almost 30,000 new homes built in 2022, an increase of 45% on 2021 and 5,250 homes or 21% higher than the Housing for All target of 24,600.

The data on the number of residential construction starts shows that 26,547 homes were commenced in the first ten months of 2023. This is a 16.6% increase on the same period last year. More than 22,400 homes were built to the end of September 2023, with the Housing for All targets of 29,000 and 33,450 in 2023 and 2024, respectively, expected to be met or exceeded.

In 2022, over 10,000 new social homes were delivered by local authorities and AHBs. Affordability and the chance to own a home is at the heart of the Government’s housing policy. As detailed in Housing for All, the Government has introduced a number of measures to support households and individuals wishing to purchase and rent a new home. These measures are primarily aimed at supporting affordability-constrained households, first-time buyers and fresh start scheme applicants to buy a home or to rent a secure cost-rental home. At the end of the third quarter of 2023, over 3,000 affordable homes had been delivered, having been supported by the affordable housing fund, the cost-rental equity loan, Project Tosaigh and the first home scheme. Over 2,500 first home shared equity scheme approvals issued in the first 15 months since its launch in July 2022. This momentum will continue as the pipeline of affordable housing delivery is developed and expanded by our delivery partners, including local authorities, AHBs, the LDA and the first home scheme. This includes over 800 cost-rental homes in the State delivered to date by AHBs, local authorities and the LDA. In recognition of the ever-demanding higher global construction costs and the higher interest rate environment, this Government has actively introduced measures over the last 12 months to support and enhance the delivery of cost-rental housing.

I wish to assure renters and Deputies that the Government is helping renters. When a tenant receives a valid notice of termination because their landlord intends to sell a home, and they are in receipt of HAP or RAS and at risk of homelessness, their local authority is supported by the Department under the tenantin situ scheme to purchase the home for continued letting to the sitting tenant. Significant progress has been made on social housing tenant in situacquisitions, with over 1,300 homes purchased by local authorities and AHBs and a further 1,000 properties at "sale agreed" stage. The Government has recently agreed to extend the programme of tenantin situsocial housing acquisitions into 2024. The Minister for Housing, Local Government and Heritage has also informed the Government of plans to give a number of new opportunities to tenants who wish to become homeowners. The plan is to give them the opportunity to buy their homes by requiring a landlord selling a property to first offer it to the tenant. Priority legal drafting of the residential tenancies right to purchase Bill is under way with the aim of publication as soon as possible. Pre-legislative scrutiny of the general scheme of the Bill is expected to conclude before the Christmas recess.

It is important to remember that a valid notice of termination must be served in accordance with the Residential Tenancies Acts 2004 to 2022. Tenants in receipt of a notice of termination are encouraged to avail of Government supports, including the tenant in situscheme and the cost-rental tenant in situscheme. Budget 2024 increases the rent tax credit from €500 to €750 per renter. Potentially, €1,500 would be available to a couple renting their home, which is very close to the national standardised average for a new tenancy of €1,574 in quarter 2 of 2023. The Government relies on the private rental sector to provide much-needed housing generally, as well as housing through which social housing needs can be met.

We must recognise that any actions that directly or inadvertently undermine the economic viability of rental accommodation provision could negatively impact on existing and future supply of rented accommodation and on the wider economy, and damage the future capacity and attractiveness for both landlords and tenants. The wider issue of Ireland’s international cost competitiveness and attractiveness for foreign direct investment is also important and a sound housing system is crucial. The Government recognises that there is a need to urgently and substantially scale up housing delivery, including emergency accommodation, affordable housing, cost-rental accommodation and social housing, including via acquisitions. This will take some pressure off the rental market. The Government will be opposing the Residential Tenancies (Deferment of Termination Dates of Certain Tenancies) (No. 2) Bill 2023 this evening.

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