Christopher O'Sullivan (Cork South-West, Fianna Fail)

I look to address some of the comments made.

In relation to the housing plan, there is a commitment within the housing plan in terms of energy efficiency. The Opposition can paint it up and describe it whichever way it wants in terms of it being watered down, but it is there. It is an absolute goal of ours because we agree that people should not be living in cold damp conditions, in private or in public housing.

Housing inspections have increased significantly. There has been a massive ramping up. We have budgeted for increased funding to local authorities to increase that capacity for inspections even further.

Local authorities, I think we can all agree, are getting far better in terms of retrofitting. The work that has been done, certainly in my time in politics and over the last ten years, has been extraordinary. Some are better than others but, for the whole, local authority housing has been made far more energy efficient. The new builds are something incredible.

We can all agree that cold damp houses are unacceptable, that the number of houses with low BER ratings, at 250,000, is unacceptable, and that it is something we need to address rapidly. What we do not agree on is the way to do it. The hard and fast timelines being suggested by this Bill would have unintended consequences and the Deputies cannot dismiss unintended consequences as something that the Government says when a Bill does not suit it. There would be, and it would be the renters who would feel the pinch. If you significantly reduce accommodation stock and private rental stock, it is the renters who will pay the price by significantly increased rents. That is something that I am not just saying. That is something that the ESRI report has alluded to in terms of the cost.

The research is there. The research has identified very significant costs associated with the works while also identifying potential concerns about the financial capacity of property owners to undertake this investment. From this, there is a concern that the imposition of minimum BER ratings on private landlords may lead to a reappraisal of the attractiveness of investment and a divestment by some owners.

The unintended consequences of the Bill, as initiated, are therefore serious, rendering a large number of currently rented dwellings unsuitable for letting in the private rental market. Given the investment that would be required to bring properties up to minimum energy efficiency standards, it has the potential to drive significant numbers of private landlords from the rental market. In a market that is already constrained, this would reduce the supply of accommodation available for tenants, including HAP tenants, leading to increases in presentations to homeless services and increased demands for homeless emergency accommodation. This would have a financial cost for the Exchequer but also come at a significant social cost.

It is vital that an appropriate balance is struck between improving the energy efficiency of homes in the private rental market and maintaining and increasing supply. The simple fact of the matter is that we need private residential rental accommodation and we need private landlords. We must seek to improve the energy efficiency of rental stock without driving private landlords from the market.

The ESRI report will inform next steps in this area and the Government has committed in its new housing plan, Delivering Homes, Building Communities 2025-2030, to examining policy measures to incentivise increased energy efficiency in the private rental market. In the meantime, a range of Government supports are already in place, including for private landlords to improve the energy efficiency of their properties. The Government has decided that the funding available for such measures in 2026 will increase to record levels.

I would also mention efforts at EU level in relation to the energy performance of buildings. A recast EU energy performance of buildings directive came into force in May 2024, which is to be transposed into national law by 29 May 2026. This recast directive is broader in scope then previous iterations, with a key aim being the renovation of the entire building stock and the energy performance of existing buildings. The new measures aim to increase the rate of renovation, particularly for the worst-performing buildings in each member state. Significant work is being undertaken across Government and by the SEAI to determine the impacts of the requirements of the directive, including those related to BER ratings and the progressive renovation of the residential building stock.

While it is recognised that the Bill, as initiated, is well intentioned, it is pre-emptive of these developments at EU level. It also does not take account of the possible negative consequences on the private rental market itself. As outlined, the Government cannot support the Bill at this time.

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