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)

Other authorities have not performed so well and have not reached 50% of what they said they would produce. This was not because we would not give them the money. Some local authority members are very good at criticising the Government and the Minister in the Custom House. However, the results of the four year programmes of some local authorities do not cover them with glory.

Some interesting cases have arisen recently in regard to rent allowances which suggest that rent allowance works towards keeping rents high in parts of Dublin. For example, a person entitled to rent allowance might be charged €1,100 per month in west Dublin whereas a private tenant might get accommodation for €950. In some cases, rent allowance tenants command a higher price. The Minister for Social and Family Affairs had complaints levelled against her because she did not increase the guideline figures for the past two years. However, although I am not telling the Minister what to do, there is an argument for reducing the guideline figures because, in some areas, they are the cause of rents staying up, which was not the intention. Rents should increase and decrease as the market dictates. It is strange that the current information suggests rent allowance is keeping rents high in certain areas. It does not make sense that landlords should seek tenants on rent allowance because they can be charged a higher rent.

I apologise if I must jump over certain points. I referred to exclusion orders. On elderly tenants, the principle of the four year cycle is that they will have security of tenure for four years. While I understand the points made, the landlord has the right to end any agreement at the end of each four your period. If the landlord has an elderly tenant, why would he or she want to end the agreement? Landlords are in the business of making money. If an older tenant has proved him or herself over a number of years to be a good tenant, looking after the property and not causing anti-social behaviour, why would a landlord want to have him or her evicted? The landlord is getting the market rent and will not get any more from a new tenant. Why get rid of a good tenant who is causing no hassle and bring in an unknown quantity?

The old system meant that a tenant had property rights after 20 years. We have moved away from this because landlords would not commit themselves and make the investment. It is a fine balance but, in general and with more supply in the market, there is no need for landlords to rush to get good tenants out. It might take a couple of months to get new tenants in with a loss of rent for that period.

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