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Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: What Deputy Pearse Doherty is saying is correct in the scenario where there is a change in tenancy. In theory, though, a landlord could always ask a tenant to leave after six months and then increase the rent for a new tenant. That position has not changed under this amendment, except that now the rent increase will be limited to 4%

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: The rent increase will be limited to 4% but it is not limited on an annual basis. A rent review cannot take place more than once a year but if there is a change in tenancy, it can. What we are trying to do here is to protect people who are in tenancies and to make sure that they do not face rent hikes to get them out, which is the whole point of a rent pressure zone.

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: Can I respond to some of the issues raised?

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: Just to be clear on the Deputy's first question, having the t/12 in the amendment was simply in order to state the 4% per year rule. It was not determining whether or not somebody could have a rent review within a year or two years. Whether the two year freeze applied or whether it was an annual review is dealt with separately in section 24C. It is legally sound and has been confirmed to...

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: By the legal team in my Department. That is the answer to the Deputy's question. I am not a legal draftsperson but I am told that that deals comprehensively with that issue. I am told that if the two year freeze does not apply, then what preceded it automatically applies, which is that there has be at least 12 months before there can be a rent review.

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: Yes it is. That is my understanding. The Deputy will have to repeat the second question because I will have to check the section that he is talking about.

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: Why have I removed that?

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: Give me a second to check that. I do not think that is the case.

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: The t/12 means that it is annual.

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: There cannot be a rent review more than once a year.

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: That is the original law.

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: That is under section 20.

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: Will I just outline-----

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: First, section 20 in 2004 provided for annual rent reviews. Section 20 was then amended by the former Minister, Deputy Alan Kelly, in 2015 by inserting subsections (4) and (6), which provided for 24-month reviewing. The amendment provides that after the initial 24-month review, in a rent pressure zone, the reviews will be on an annual basis. That is the position in terms of the legal...

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: That is the legal interpretation that I am getting.

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: Let me finish. The Act has always allowed a landlord to increase rent when a new tenant is agreed. New tenancies on or after the enactment of a rent pressure zone will be reviewed annually and will increase by no more than 4%.

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: I think it does.

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: That is why we have agreed to recommit the Bill in respect of the amendments in order that we might discuss and scrutinise this issue. My intentions were clear. There was a mistake in drafting. It was pointed out, it is being corrected and I am answering any questions that people may have. That is the way we legislate in this House.

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: All the groups and parties in this House want to conclude this legislation before the end of the year so that we can get designations in place to restrict rent increases. That is what this is all about. It would be very foolish to announce a policy intention and not to follow through where it is obvious that we can follow through by bringing legislation forward. We signalled that with all...

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report Stage (15 Dec 2016)

Simon Coveney: We are fixing something. If the Deputy reads his own amendment, he will see that he made the same mistake.

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