John Halligan (Waterford, Independent)
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5. To ask the Minister for Social Protection the way rent allowance limits can differ so drastically by county and in local areas throughout the country particularly in Waterford where the rent allowance limits are so much lower than in the neighbouring county of Kilkenny (details supplied); her views on whether the current rent limits brought in to run from June 2013 to December 2014 accurately reflect the recent rise in rents charged by landlords and whether this is resulting in a serious lack of availability of rental accommodation which would comply with the rental limits making it almost impossible for applicants to comply with the regulations; her views on whether the current rental limits need to be radically reviewed in line with local rents payable; and if she will make a statement on the matter. [17797/14]

John Halligan (Waterford, Independent)
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Could the Minister clarify to the House how the rent allowance scheme appears to differ so drastically from county to county? Does she agree that the rent limits set to run from June 2013 to December 2014 do not accurately reflect the recent rent rises charged by landlords?

Joan Burton (Dublin West, Labour)
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There are approximately 78,000 rent supplement recipients for which the Government has provided over €344 million for 2014. Following the most recent review of the private rental market, revised maximum rent limits were introduced from Monday 17 June 2013 until 31 December 2014. For all counties, major urban population centres were tested to ensure access to housing and value for money. The Department used information from tenancies registered with the Private Residential Tenancies Board, PRTB, to analyse actual costs in each county. The purpose of the most recent review is to ensure availability in the areas required, not to provide access to housing in all areas.

Despite pressures on the social protection budget, there have been increases in the rent limits in some areas, including Dublin and Galway, as well as reductions or no change in others. The limits for counties Waterford and Kilkenny reflected the respective prevailing rental markets and analysis shows there are properties available within these limits. I am fully aware that in some areas, particularly Dublin, prospective tenants are finding it increasingly difficult to secure accommodation due to reduced availability of supply. Increasing rent limits will not resolve this difficulty and would result in additional increases in costs for everyone who is renting, including those who are at work and who pay their rent out of their wages.

The Department continues to monitor trends in the private rental market. Its officials have considerable experience in dealing with clients of the scheme and continue to make every effort to ensure their accommodation needs are met. The Department’s strategic policy direction is to transfer responsibility for recipients of rent supplement with a long-term housing need to local authorities under the housing assistance payment, HAP. Officials are working closely with those in the lead Department, namely, the Department of the Environment, Community and Local Government, in piloting HAP in Limerick with further roll-out to selected local authorities during the year.

John Halligan (Waterford, Independent)
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It has been stated repeatedly that the varying rent levels nationwide are intended to fall in with the cost of rent in the private sector. However, if, for example, one takes a one-parent family or a couple in Waterford with one child, they must comply with a rent limit of €475 per month. The average for all dwellings let in Waterford in the final quarter of last year was €540. These are the Minister's own figures, as well as figures from the average rent database of the Private Residential Tenancies Board, PRTB. Consequently, it is incorrect to think rental levels are at one countrywide. Second, I believe the rents are only reviewed every 18 months. Moreover, decisions are taken at central or national level, often by people who are far removed from the reality facing tenants in receipt of rent supplement who are put to the pins of their collars trying to find a place to rent. I will provide an example to the Minister.

Michael Kitt (Galway East, Fianna Fail)
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Sorry, Deputy, I call the Minister and will come back to you.

John Halligan (Waterford, Independent)
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Based on the money available at present, for the aforementioned €475, a young family in Waterford would be lucky to get a one-bedroomed apartment. These are facts confirmed by the PRTB's average rent database.

Joan Burton (Dublin West, Labour)
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First, this is a supply problem in a number of cities. I note the recent study on what are the likely requirements for housing and homes in the near future. I believe the only solution is to have a major investment in housing and to have a housebuilding programme. Unfortunately, the direct involvement of local authorities in housebuilding was abandoned by the previous Government at the height of the boom because at the time, it was thought the private market could provide for everything other than perhaps special needs accommodation for older people and those with particular needs. Consequently, this is a supply issue.

As for the specific area to which the Deputy referred, the rent limits are in line with the prevailing market conditions in Waterford. I suggest to the Deputy that if he has an issue, he should meet the official dealing with the rents because in many cases, particularly if there are any exceptional circumstances relating to the family or individual concerned, the community officers will be in a position to assist. However, there is an issue. I understand the area to which the Deputy refers is Ferrybank, which has a very small supply of houses for rent overall going back to the supply problem.

Michael Kitt (Galway East, Fianna Fail)
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I call Deputy Halligan and will come back to the Minister.

John Halligan (Waterford, Independent)
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First, applicants receive rent supplement on the basis that they have no other source of accommodation available to them. Otherwise, they would not be able to afford rental accommodation. The point is that in some areas throughout the country, rents have increased dramatically. It is incorrect to state it may only have increased in Dublin, Cork, Wicklow or wherever. Rents have increased in Waterford. All of the evidence is there from both the PRTB and the Department of Social Protection but yet, the limit has stayed as it is. All this is doing to many young couples is to force them into poverty, because they need some place to stay. They are not going to get onto the housing list - there are far too many people on that list - and inevitably must try to find rented accommodation. Yet, on an income that is nearly €130 less than in many other areas of the country, they are being asked to find such accommodation. My final point is it is €475 per month. While one can try to argue this with the Department, its representatives will reply these are the limits on which they have been told to work, namely, €475 per month. I have tried to do this, as have other Deputies and politicians in Waterford. It is not working and the Minister must change the rent allowance.

Michael Kitt (Galway East, Fianna Fail)
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The Minister, in her final reply.

Joan Burton (Dublin West, Labour)
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As the Deputy is aware, many people in Waterford who rent are being paid the rent supplement within the limits. The Deputy should remember that the limits were identified by an intensive and extensive survey of all of the current up-to-date data. One concern I have is that because the Department accounts for just under 40% of the total rental market, it will end up pushing up rents for everyone. When the rent was increased last year and when the changes were made, there was a general welcome for it. However, since then, there has been a huge amount of publicity, much of which encourages landlords to seek additional rents. However, as for those renting in the private sector and those in receipt of rent supplement, the evidence we have, because we know what people are renting-----

Catherine Murphy (Kildare North, Independent)
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The Minister does not.

John Halligan (Waterford, Independent)
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I do not believe so.

Joan Burton (Dublin West, Labour)
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The evidence I have is that many people are able to rent. However, there is an issue in respect of housing and the way to deal with that, as part of the construction strategy, would be to recommence significant amounts of housing construction. That in turn would ease the pressures on rents as more supply becomes available.