James Browne (Wexford, Fianna Fail)

I will speak to amendments Nos. 1 and 2, which appear to have the aim of introducing a ban on rent increases. The Government's view is that the imposition of a ban on rent increases is highly likely to be subject to a legal challenge and would almost certainly deter continued investment in the rented accommodation market and cause a greater recourse to the State for social housing supports.

The current rent pressure zone arrangements, under which rent increases are capped at 2% per annum pro rata where inflation is higher, were introduced as a balanced set of arrangements to regulate rents. The most effective way to reduce and stabilise rents in the medium to long term is to increase supply and accelerate the delivery of housing for the private rental, cost rental and social rental sectors. Allowing a rent increase of up to 2% per annum pro rata is considered to provide a reasonable balance between stable rent control and allowing landlords to adjust rents in line with general inflation, bearing in mind that achieving 2% general inflation is the stated price stability mandate target of the European Central Bank.

If a notice of termination is served, the rent cannot be reset. It does not matter if it is a matter of selling, putting a family a member in or whatever the case may be. If a notice of termination is served, the rent cannot be reset. There is no incentive there.

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