Barry Cowen (Offaly, Fianna Fail)
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1. To ask the Minister for Housing, Planning, Community and Local Government the proposals he is considering to try to stem inflation in rent prices in the private rental sector in the short term; and if he will make a statement on the matter. [35579/16]

Barry Cowen (Offaly, Fianna Fail)
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Notwithstanding the initiatives in Rebuilding Ireland - Action Plan for Housing and Homelessness to deal with supply and the housing crisis, for which enabling legislation is expected to come before the House in the weeks ahead, with one such Bill currently before the Seanad, we have an immediate problem in the rental sector where inflation is running at more than 10%. This rate of inflation cannot be sustained by current household incomes and is leading many people to homelessness. An immediate solution is required. We have all engaged in the consultation process of recent weeks and I hope the Minister will produce proposals in the short term. I earnestly ask that he consider introducing legislative proposals in the coming weeks to give Deputies an opportunity to analyse and scrutinise them, with a view to ensuring the best possible solution is proposed, one which secures the approval of as many Deputies as possible.

Simon Coveney (Cork South Central, Fine Gael)
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The significant increases in rents we are seeing, particularly in urban areas, are primarily caused by a severe shortage in supply. The best way to address rents in the long term and benefit the entire sector is to increase the supply of rental accommodation and accelerate the delivery of housing for the private and social rented sectors. However, I acknowledge that short-term measures are also needed.

Pillar 4 of Rebuilding Ireland - Action Plan for Housing and Homelessness commits to developing a comprehensive strategy for the rental sector. The strategy will include measures to address immediate issues affecting the supply, cost and accessibility of accommodation. In addition, it will consider measures to increase security of tenure and, in particular, the potential of new mechanisms for both setting and reviewing rents. There will also be a focus on maintaining existing levels of rental stock and encouraging investment in additional supply.

The rental strategy will provide a vision of the role the rental sector will play in the short, medium and long term in the context of the Government’s overall objectives for the housing sector. I expect it to be finalised by the middle of December. Some of the measures in the strategy will require supporting amendments to be made to the Residential Tenancies Act. However, other legislative changes are being accelerated for early enactment in the Planning and Development (Housing) and Residential Tenancies Bill 2016, which commenced Second Stage in the Seanad yesterday. Tenants and landlords alike will, therefore, see a number of improvements introduced arising from these legislative provisions.

The key challenge is to ensure the development of a viable and sustainable rental sector that can provide choice, quality, value and security for households, together with secure, attractive investment opportunities for rental providers.

My objective is to use the opportunity presented by the Planning and Development (Housing) and Residential Tenancies Bill 2016, which will come before the Dáil in early December, to make necessary amendments that are consistent with the rental strategy once it has been launched. These amendments will probably be made on Committee Stage in the Dáil. I hope I will be able to reflect the concerns expressed by a number of political parties and individuals in the consultation process. I will try to find a balance that will ensure continued investment and supply and provide an appropriate response to the difficult conditions in which many tenants find themselves as a result of rental inflation.

Barry Cowen (Offaly, Fianna Fail)
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I thank the Minister for his response and acknowledge that he agrees with many Deputies on this side on the urgent need to introduce short-term measures to address the terrible inflation being inflicted on those who find themselves in the awful predicament of renting accommodation. I also welcome his commitment to consider the possibility of amending legislation to ensure security of tenure for tenants and place before the House legislation which will give effect to new means and mechanisms for setting and renewing rents along the lines of rent certainty and control.

I also acknowledge the commitment given by the Minister to introduce amendments on Committee Stage of the Planning and Development (Housing) and Residential Tenancies Bill 2016 consistent with the rental strategy which he will announce in the weeks ahead. This reflects the calls made on this side for urgent action to be taken on this issue. Amendments should not be taken lightly because they interfere with the market but market intervention is unfortunately necessary because market conditions are abnormal. Changes can be reviewed after a period to ensure they achieve the desired outcomes. I ask the Minister to bear in mind that regardless of how abnormal his amendments may seem, the market is also abnormal and the changes the House introduces can be reviewed after a period.

Simon Coveney (Cork South Central, Fine Gael)
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Striking a balance is difficult; if it was easy, we would have acted months ago. Sinn Féin has made proposals on numerous occasions and I understand the party intends to introduce another Private Members' motion in two weeks' time, which is just before we are due to the launch the rental strategy. I am not sure if this will be helpful given that we are trying to finalise a rental strategy that takes on board the concerns of many stakeholders. That is politics, however.

The issue for me is to get this right. The last thing I want to do is introduce a blunt measure that may solve an immediate problem for one sector but cause a major problem in another sector. We must ensure that, regardless of what steps we take, the private rental market continues to attract investment because we need many more rental properties. However, I will not ignore the pressures many tenants are under. We have taken time to consult many interested parties, including the Opposition, on this matter and we will finalise the process as quickly as possible. I hope political games will not be played during the process because this is a genuine effort to get this right.

Barry Cowen (Offaly, Fianna Fail)
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I assure the Minister that I will not seek to play political games on this issue. I want the legislation to be brought before the House in order that it can be analysed, scrutinised and improved. I want a consensus to be achieved in order that the legislative changes the House makes will have the desired effect and will be reviewed after six or 12 months. I want measures introduced urgently that will deliver the best possible outcomes and provide security of tenure and legal mechanisms to allow for fair play in the setting and renewing of rents.

Simon Coveney (Cork South Central, Fine Gael)
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The rental strategy is an important part of the housing strategy. The rental market has doubled in size in the past 20 years. Thousands of families rely on a sustainable and predictable rental market to provide certainty about where they will live in six weeks, six months or six years. We are trying to respond to changing circumstances and the crisis in supply in many parts of the country. It is not easy to get the balance right, which is the reason we have taken a little time to develop the strategy. I appeal to people to allow us to conclude the strategy. There will be an opportunity to debate the amendments to legislation we will introduce as part of the rental strategy as well as policy initiatives we will take to try to strike the right balance, which will not require legislation.