Seanad debates

Friday, 2 July 2004

Residential Tenancies Bill 2003: Second Stage.

 

1:00 pm

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)

Upkeep comes under standards which are still the responsibility of the local authority. Following the passage of the Bill, I will reconsider the issue of standards regulations. However, to be fair, different aspects of the housing market have been under huge pressure in recent years. The census completed just before the general election in 2002 showed that the population had increased by 8% over a six year period, an enormous increase of approximately 270,000. I do not think another country could be found with such a significant population increase. Despite the booming Celtic tiger, this has a knock-on effect and puts pressure on all aspects of the housing market. Some landlords have availed of this and rented out accommodation which, in the normal course of events, tenants would not have accepted.

The best cure for low standards is increased supply, which is being achieved. If better supply is available, tenants will not rent bad accommodation but will be choosy and take better accommodation. In some respects, the amount paid in rent allowance is too high and should be more focused and targeted. Good accommodation might be had for €1,000 in one area but for only €500 in another. We are inclined to give out too much rent allowance without it being measured, controlled and focused on standards. However, the best cure for problems with standards is supply, which will be achieved if the level of production can be maintained. Some 78,000 houses were built last year, some of which were bought to provide pensions in the future, as noted by Senator Brian Hayes.

Reference was made to tax incentives, which will be dealt with in the Finance Act. Senator Kitt raised the issue of student accommodation and I accept there is a problem with this every year. I listened to a radio programme from Galway last year on which complaints were made. Some people hyped up the issue which played into the hands of landlords who felt that parents were coming from the country with plenty of money, as have all those from the country.

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