Dáil debates

Tuesday, 11 June 2024

Planning and Development Bill 2023: Report Stage

 

4:15 am

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

I cannot accept the two proposed amendments to amendment No. 1 tabled by Deputies Boyd Barrett, Ó Broin, Ó Snodaigh, Gould and Cian O'Callaghan with the aim of adding references in the Long Title to give effect to international conventions and directives of the European Parliament and of the Council and to a number of other enactments that are referred to in the Bill but not necessarily amended by the Bill. The Bill already includes relevant specific provisions to give effect to an EU law. This is not required to be noted in the Long Title. Likewise the Bill lists on pages 23 to 25, inclusive, Acts referred to in the Bill so it is not necessary to list them elsewhere.

Amendment No. 1 updates the Long Title of the Bill to reflect the insertion by Government of the new Parts 24 and 25 into the Bill. The new Part 24 amends both the Residential Tenancies Act 2004 and the Residential Tenancies (Amendment) Act 2019 in relation to rent pressure zones, RPZs. Part 24 of the Bill comprises three new sections, namely, sections 573, 574 and 575.

The new Part 25 amends the Land Development Agency Act 2021 and the National Asset Management Agency Act 2009. Amendments Nos. 827, 828 and 829 provide for the new Part 24, relating to rent controls. Amendment No. 827 inserts a new section 573 into the Bill to amend sections 19, 20, 24A, 24B and 24C of the Residential Tenancies Act 2004, RTA, to provide for an extension of rent controls for a further year until 31 December 2025.

In the light of the prevailing pressures on rent levels and the impending expiry of the RPZs on 31 December 2024 and of the legal restriction to biannual rent reviews outside of RPZs, it is proposed to use this Bill to give the sector, particularly renters, foresight and certainty by giving sufficient advance notice of the extended application of existing rent controls by one year until 31 December 2025. During the one-year extension, a review of the operation of rent controls will take place - it is actually under way - in the light of market changes and experience in other jurisdictions. The early enactment of these measures should provide some measure of comfort and certainty for renters.

The new section 573(a) of the Bill technically amends section 19(6) of the RTA by inserting a necessary cross-reference to the new section 24A(6A) of the RTA, which I will speak to momentarily. The new section 573(b) amends section 20 of the RTA to provide for biannual rent reviews to continue to operate outside of RPZs for a further year until 31 December 2025. The continuation of this measure, for a further year, aims to provide rent certainty for tenants outside of RPZs for a minimum two-year period at a time of rising rents and constrained supply in the private rental accommodation sector.

The new section 573(c) inserts a new section 24A(6A) into the RTA to provide for the Housing Agency, following consultation with the relevant housing authority, to make a recommendation to me, as Minister, to order a non-RPZ area to become an RPZ upon joining an existing RPZ, post a local electoral area, LEA, boundary change. Such an order would expire on or before 31 December 2025. In future, such an order could be made to enable a small non-RPZ area, such as Clogher or part of Carrigaline - we discussed this in the House before - to become an RPZ when joining an existing RPZ area. The rent levels in a new LEA which comprises predominantly an area that already is an RPZ and a small non-RPZ area that joins are highly unlikely to meet the criteria under the Act to designate the new LEA as an RPZ. Accordingly, the new order-making power is required under section 24A(6A).

The new section 573(d) amends section 24B of the RTA, which provides for areas to be deemed as an RPZ. The operation of the deemed RPZs in Cork city and the Dublin local authorities is extended to continue for a further year until 31 December 2025. These local authorities were deemed to be RPZs from 24 December 2016 under the Planning and Development (Housing) and Residential Tenancies Act 2016. The application of rent controls for a further year again aims to protect tenants from unaffordable rent increases during a sustained period of constrained supply.

Amendment No. 828 inserts a new section 574 into the Bill to amend section 8(2) of the Residential Tenancies (Amendment) Act 2019 to provide for RPZs designated under section 24A(5) of the RTA to continue in operation for a further year until 31 December 2025.

Amendment No. 829 inserts a new section 575 to the Bill to provide for Part 24 of this Bill and the Residential Tenancies Acts 2004 to 2022 to be construed together as one and collectively cited as the Residential Tenancies Acts 2004 to 2024.

Part 24, relating to rent pressure zones, shall come into operation on the day after the passing of this Bill. I understand that I am not under any time constraints.

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