Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

Yes.

EUROCONSTRUCT, an independent construction market forecasting network, has forecasted that Ireland will grow construction output at the strongest rate among the 19 European countries – a very positive outlook for the future.

With regard to the rental market, we know that challenges remain for both tenants and landlords. That is why we have commenced a comprehensive review of the private rental sector. This review, which is the first in a decade, has taken into account the significant recent regulatory and legislative changes in the sector. There was extensive public consultation as part of that process. The review is nearing completion and we will report on how our rental market can be made more efficient and affordable and how we can make it work for all. It will take a longer term view of the issue and put forward solutions to problems that have been festering for many years. This review is on top of what we have already introduced in the rental market, including extending rent pressure zones, containing rent increases and introducing tenancies of unlimited duration. Before this Government took office, annual rent raises of 4% were permitted. In 2021, we both extended the RPZs until the end of 2024 and banned any increase in an RPZ from exceeding general inflation, or 2% if inflation was running higher than that. We also enacted legislation in 2022 that introduced tenancies of unlimited duration for the first time. This meant that all tenancies created on or after 11 June 2022 will become tenancies of unlimited duration after six consecutive months if a valid notification of termination has not yet been served.

We have also provided additional functions and resources to the Residential Tenancies Board so that it can investigate improper conduct by landlords and administer sanctions if required. As a result of the investigations conducted by the RTB to date, 160 sanctions imposed on landlords for improper conduct have been published on the RTB’s investigation activities since 2019. Some 80% of published sanctions for improper conduct are for breaches of rent pressure zone limits on rents. The RTB continues to investigate and impose sanctions where appropriate. The Government will ensure the RTB has the resources it needs to govern the market properly.

The motion also refers to short-term lets and the efforts that have been made by the Government to better regulate this sector. On behalf of the Minister, Deputy O’Brien, I reiterate that the proposed short-term tourist letting Bill is a priority for the Government, and preparations for the establishment of the register began in 2021. There has been extensive and ongoing engagement with the European Commission on the Bill by officials from the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media. This engagement is aimed at ensuring alignment between Ireland’s approach within the Bill and those under EU law. It is expected that the technical regulations information system notification process will finish shortly and will enable the publication of the Bill. I also wish to highlight the fact that legislation was enacted in 2019 to curb short-term lets in our urban areas where long-term rental supply was needed most. The Government continues to engage with the European Commission to progress the Bill to set up the proposed register which will help the Government to have effective oversight over this growing sector.

As we have advanced this as a matter of priority with our European colleagues, work has been undertaken by our local authorities to enforce the existing planning regulations. They have dedicated considerable time and effort into clamping down on illegal short-term lets. Everybody on this side of the House is just as eager as those on the Opposition benches for the current law to be followed. Once the Bill is enacted and the register is in place, we will be in a far better place to address the issue further.

We recognise that this Labour Party motion is brought in good faith and we know that everybody wants sustainable and affordable housing for all. We want to solve the challenges in the rental market for good. As evidenced by our persistent commitment to the impending introduction of the register, it is clear we take the issue of the short-term lets seriously. We are determined as a Government to resolve the issue.

Improving capacity in the rental market has always been a priority and many of the measures we have introduced, coupled with the review of the sector, which will be completed shortly, will make the difference that is needed. We know that to solve the challenges we face in the housing sector, you need to have a comprehensive, realistic plan supported by the funding required to deliver it. We have Housing for All and a whole-of-government approach supported by an unparalleled level of funding. The Government is providing €5.1 billion in capital investment in housing from 2024 - the highest level of funding for housing in the history of the State - to accelerate the delivery of the new homes and increase the supply that is necessary to not only reduce homeless but also moderate house prices and rental prices.

The most important aspect of Housing for All it that it is delivering. It is delivering more homes than we have had in 15 years, which we did in 2023. It is delivering cost-rental homes for the first time in Ireland and the first affordable purchase homes in a generation. It is delivering sweeping reforms and changes to our housing system, which means we can end the scourge of homelessness, improve our planning and rental systems and provide well and affordable housing for all.

Again, on behalf of the Minister, Deputy O’Brien, I thank the House for this opportunity.

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