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

I thank Deputies Farrell and Ó Broin for proposing this Bill and giving us the opportunity to discuss this important issue. The main intention of the Bill is to provide greater security of tenure to lodgers, including students. The Government agrees that everybody should have a sense of security and protection in their home. I state at the outset that the Government will not be opposing this Bill on Second Stage. While there are a number of technical flaws in the Bill, and detailed legal advices would be required, I believe the Bill would benefit from further discussion and scrutiny in committee.

The proposed section 10 of the Bill, for example, would remove existing protections for tenants where the landlord is in default of their obligations under the Residential Tenancies Acts. I am sure that is not the intention. If passed, section 10 would provide for tenancy terminations where a licensor is in default of their obligation under the Residential Tenancies Acts. However, it would also delete those same protections for tenants. I also put on record that the Government values digs accommodation as an integral housing solution for students and others. Income from digs is very important to those who open up their homes to share with lodgers. The social interaction that both parties enjoy from digs arrangements is also valuable and beneficial to society. For this reason, I clearly reassure anyone who is providing digs or planning on renting to a lodger, including students, in the coming months not to be deterred from doing so for fear of this Bill and any impending regulation of their homes. The proposed changes in this Bill will not affect any existing digs arrangement and will not be in operation when the new academic year starts in September. It is really important to state this. We do not want to lose any digs from the housing system. In fact, we wish to grow the number of digs available.

The Government has introduced a number of measures to incentivise people to share or let their principal private residence, as referenced by a number of Deputies. The Government aims to make use of under-occupied homes via the tax relief for letting to students and others under the rent-a-room scheme - up to €14,000 tax free rental income - and through the disregard of such income for the purposes of various social welfare supports, medical cards, GP visit cards or the fair deal scheme. Such income is also disregarded for social housing supports where a local authority tenant lets a room to a student. The plan is to extend this disregard to lettings by social tenants in approved housing body dwellings. The Government is concerned that any attempt to regulate digs could have a negative impact on the supply of this traditional and important source of accommodation for students and others. The impact on supply will need to be carefully considered in tandem with the legalities of the Bill.

The Residential Tenancies Acts 2004 to 2022 regulate the landlord-tenant relationship in the private rented sector and set out the rights and obligations of landlords and tenants. The Residential Tenancies Acts apply to every dwelling that is the subject of a tenancy, subject to a limited number of exceptions. Section 3(2) of the Residential Tenancies Act sets out the dwellings it does not cover, and include for example, a dwelling within which the landlord also resides. The Residential Tenancies Board was established as an independent statutory body under the Residential Tenancies Acts to operate a national tenancy registration system and to resolve disputes between landlords and tenants. Where a dwelling is occupied by a person under an arrangement or agreement which is not a tenancy covered by the Residential Tenancies Acts - for example, where a bona fide licensing arrangement exists - the RTB does not have any jurisdiction or function. It is a private contractual matter between the parties as to the type of agreement or arrangement to be put in place. If a dispute arises as to whether a purported licensee is in fact a tenancy, the RTB can determine on the matter and if it is a tenancy, the Residential Tenancies Acts apply. Students residing in digs or family homes traditionally benefit from the goodwill that exists to ensure that both students and the person who opens their home to share are happy with the arrangement. It is possible for the arrangements to be formalised by way of a licence between the parties but this is a matter of choice for the parties themselves to agree on. The Government wishes for digs to continue to be available for the benefit of both parties to such arrangements. The Residential Tenancies Acts do, however, apply in respect of tenancies and licences entered into between students and private landlords and licensors in student-specific accommodation, SSA, where the rented property is not occupied by the owner. SSA tenancy or licence disputes arising can be resolved and determined by the RTB.

In the context of changes to the Residential Tenancies Acts, it is important for any rental reform to be justifiable and necessary as a matter of priority to avoid the risk of weakening the stability and confidence in the rental sector. 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. Any actions that directly or inadvertently undermine the economic viability of rental accommodation provision could negatively impact on both existing and future supply of rented accommodation and the wider economy, and damage the future capacity and attractiveness, for both landlords and tenants.

We must not underestimate the importance of maintaining the existing supply of student accommodation in all its forms, as well as growing new supply in the sector. Across Government, we all recognise the need for rental accommodation for students including student-specific accommodation developments. The State is accordingly now directly investing to ensure the viability of more than 1,000 new student accommodation beds across a number of universities through Department of Further and Higher Education, Innovation, Research, and Science short-term activation measures. Building on this success and to further the objectives set out in Housing for All, the Government approved the long-term student accommodation policy in January. The long-term vision, which is a key deliverable of the Government’s Housing for All plan, will ensure that availability of accommodation does not act as a barrier to accessing higher education. This dual-benefit policy will make fit-for-purpose accommodation available for students and therefore increase housing availability for private individuals and families. In addition to increasing supply of student accommodation through State support, the policy aims to reduce the cost of delivery through the development of standardised design guidance, promoting efficient use of existing stock and vacancy, while also supporting balanced regional development and an examination of transport links and viable commuting options. Cognisant of the Government’s shared commitments under Housing for All, a key objective of this policy is to alleviate pressure on the general private rental sector. The Minister, Deputy Darragh O’Brien, and Department officials continue to work closely with the Minister, Deputy O’Donovan, and his officials on the progression of standardised design templates for student accommodation.

The long-term student accommodation policy will continue to have a focus on the provision of digs accommodation, which traditionally has been a suitable source of supply for some students.

Digs-style accommodation is an integral part of the supply for the sector. The Department of Further and Higher Education, Research, Innovation and Science ran a four-week media campaign in July and August 2023 to make homeowners aware they could earn up to €14,000 a year tax free by renting out their spare room or rooms to students. The campaign was run on print, radio and digital platforms and targeted both homeowners and students. It resulted in a near doubling of the number of offers of accommodation when compared with the same period in 2022. It will be important not to lose ground here.

Digs are a vital source of flexible and affordable accommodation for students in key campus locations. The student accommodation survey undertaken by the HEA in September 2023 received 22,801 student responses, or 10% of the student population, and identified that 19% of students who resided away from home for the purposes of higher education resided in digs. The campaign will run again this year on radio, social media and national print platforms to increase awareness of the rent-a-room scheme for the 2024-25 academic year. This campaign will be supplemented by the voluntary framework and sample licence agreement developed by the Department of the Minister, Deputy O’Donovan, in 2023 to provide safeguards and guidance for students and homeowners in advance of entering an agreement.

This proposal is not one we should rush into. Collectively, we need to carefully examine the Bill and the underlying policy considerations. Potential unintended consequences could include a collapse in the supply of digs or a rise in the number of accommodation arrangements that seek to circumnavigate the proposed regulation. The programme for Government recognises the important role the private rented sector plays and will continue to play. The Government will address challenges in this sector including supply, standards, security and affordability for renters. We are making significant changes in recognition of the fact tenants continue to face persistent pressures in the rental and housing markets. Our approach to change must continue to be carefully balanced. We must recognise we need a steady supply of rental accommodation, with that sector on a sound legal footing within the overall housing system.

I thank Deputies Farrell and Ó Broin for bringing forward the Bill and allowing us to have a debate on its merits.

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