Dáil debates

Wednesday, 13 January 2016

Ceisteanna - Questions - Priority Questions

Rent Supplement Scheme Payments

2:55 pm

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party)
Link to this: Individually | In context | Oireachtas source

3. To ask the Tánaiste and Minister for Social Protection the measures she has taken to assist persons presented with massive rent increases by landlords, particularly those in receipt of rent supplement; and if she will make a statement on the matter. [1248/16]

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party)
Link to this: Individually | In context | Oireachtas source

I ask the Tánaiste to tell me what she has done to deal with the major problem of rent increases, particularly as they affect people on rent supplement, for which the Tánaiste is directly responsible, but also more generally. The number of families that have fallen into poverty or homelessness is continuing to increase on the Tánaiste's watch. I would like to mention a number of rent increases that have taken place in the Tánaiste's constituency. Perhaps she can advise me of what can be done in these cases. A family in Mulhuddart Wood received a Christmas present from the landlord in the form of a rent increase from €850 to €1,400. Two other families had their rents increased from €900 to €1,300 and from €950 to €1,200, respectively. A family in the Gallery today had its rent increased from €900 to €1,300. Maybe the Tánaiste can tell us what she has done.

3:05 pm

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
Link to this: Individually | In context | Oireachtas source

I congratulate Mr. Peter Finnegan on his appointment today.

Rent supplement plays a vital role in housing families and individuals, with the scheme supporting approximately 61,000 people for which the Government has provided approximately €267 million for 2016. Properties are being secured under the scheme with over 20,100 rent supplement tenancies awarded during 2015. In view of the reduction of supply in the private rented market and increasing rents at this time, the Department has implemented a policy approach that allows for flexibility where landlords seek rents in excess of the limits for both existing customers and new applicants to the rent supplement scheme. The circumstances of tenants are considered on a case-by-case basis and rents are being increased above prescribed limits, as appropriate. In addition, the Department, in conjunction with Threshold, operates a special protocol in the Dublin and Cork areas where supply issues are particularly acute, with plans under way to extend this to Galway City.

This flexible approach has assisted over 5,800 households nationwide to retain their rented accommodation through increased rent payments. Persons in receipt of rent supplement who may be at risk of losing their tenancy as a result of increases in rent are urged to contact their local welfare services or Threshold, which operates the sustainable services, without delay.

I believe that these measures and the reforms to the private rental sector as recently announced by Government will provide increased stability in what has become a highly volatile rental market. I am continuing to keep this matter under close review.

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party)
Link to this: Individually | In context | Oireachtas source

The Minister of State is saying that the family members who are here today, and who have an increase in their rent from €900 to €1,300, can go to the CWO to get the increase. If they do not get that increase, will the Minister join me in advising these family members to break the law to keep a roof over their heads and to refuse to remain in that property? That is the only advice I can give them.

The Minister of State brought in the Residential Tenancies Act before Christmas. Not only has it proved to be ineffectual but I would argue that it has made the situation worse. Landlords are now bringing in double rent increases, knowing they cannot do it next year. All of the families who have contacted our office, and who I am sure have contacted the Tánaiste's office in the same constituency, are getting double rent increases rather than a single rent increase.

Another issue is discrimination against people on rent allowance. A law was passed on that with the support of the Labour Party but there are two advertisements on the Daft.iewebsite, which I can see before me, targeted at people in the local area who are looking for accommodation and which say, "Unfortunately, no rent allowance accepted". What is the Government going to do about that?

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
Link to this: Individually | In context | Oireachtas source

I hope the Deputy has advised that family not to wait a day to engage with the community welfare officer. Like the Deputy, I deal with this on a weekly, if not daily basis and there is a huge and severe problem relating to supply. This Government has provided over €900 million to be invested in the provision of social housing in 2016 and we will start seeing progress on that in the shape of new houses under construction towards the end of this year. There is a facility to deal with increases in rent on a case-by-case basis and we are actively engaged with the Department of Justice and Equality in connection with the advertisements referred to by the Deputy. I thank her for highlighting them for us.

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party)
Link to this: Individually | In context | Oireachtas source

I have two more, which I will send on to the Minister of State. Even if those advertisements did not exist people would be given a telephone interview and would be refused for having rent allowance on that basis.

I wish to return to the issue of rent, including those who are not on rent supplement. There is another property, an apartment block, in the Tánaiste's constituency where a letter was sent just before Christmas to the whole block saying the rent for the apartments would rise from €1,000 to €1,250 per month from a certain date. It said, "If you do not wish to renew your lease at this rent please inform us [before a certain date]". In other words what it effectively said was, "Accept the increase or get out". What are those people to do? What is the Labour Party or the Tánaiste and Minister of State going to offer to do for those people? Occupants of a whole apartment block are being told to put up or shut up and to pay this increase.

On the families who have received letters, one is from Fisher Property Management in Cherryfield in Hartstown, which the Tánaiste will know well.

3 o’clock

They are very modest houses but the rent is increasing from €900 to €1,300 per month. Yes, I did think of advising them to go to the community welfare officer, CWO, but why has the Minister not introduced rent controls to stop this type of rack-renting occurring? That family will not be housed by Fingal County Council by the eviction date, as is the case in many councils around the country. Will the Minister join me in advising families who are receiving such letters to stay in their homes and to refuse to vacate those houses until they have alternative accommodation, which, unfortunately, due to the way the Government has mismanaged the housing crisis by not acknowledging it as an emergency, will not happen any time soon? People should not make themselves homeless.

3:15 pm

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
Link to this: Individually | In context | Oireachtas source

I repeat that through active engagement with the community welfare officer we have dealt with numerous cases. There have been over 6,000 cases and they have been dealt with on a case-by-case basis and in a very successful manner. There have been reforms in the private rental sector. Rent review notices have been introduced. Period of rent reviews, a temporary provision which applies for four years, and notice of termination have all been changed.

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party)
Link to this: Individually | In context | Oireachtas source

None of it is working.

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
Link to this: Individually | In context | Oireachtas source

If we had followed the Deputy's advice, in many ways we would have been in a far worse position.

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party)
Link to this: Individually | In context | Oireachtas source

On rent controls-----

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
Link to this: Individually | In context | Oireachtas source

Now, there is hope. We now have money to invest in social housing, and that is being done. As I outlined, the total fund is over €900 million. A sum of €923 million is being invested in 2016 for the provision of social housing. There is €3.8 billion for the programme to supply social housing in the coming years. As the recovery is ongoing the discussion we should have is about dealing with that. If the Deputy had wished to have a proper and positive reaction, she could have forwarded those cases to me before raising them in the House so I could have had time to research them and provide her with a fuller response.

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party)
Link to this: Individually | In context | Oireachtas source

They have been raised with the Minister but they were fobbed off to her local councillor.