Aideen Hayden (Labour) | Oireachtas source

I welcome the Minister of State, Deputy Jan O'Sullivan, and I welcome this debate. One in five households in Ireland lives in private rented accommodation. We have not had that proportion of people in the private rented sector since the 1950s. It is a significant turnaround in the housing context, and there is every indication that the number of people renting privately in Ireland will grow rather than decline.

The Minister of State mentioned that we are living in a time of change in respect of housing policy.

Our private rental sector is reflecting very much what is happening in the European and international context, that is, the decline in home ownership. Social housing provision is also in decline but private rental is increasing. This presents us with a number of challenges, to which I will refer.

Let me focus on the positive points. As stated, the regulation of the rental sector has come a long way. Having been very much involved at the coalface of housing as chair of Threshold housing organisation - I have worked in housing since the mid-1980s ? I note there is no doubt that the private rental sector was very much neglected historically. It was the sector of those who could not obtain social housing or become homeowners, and was associated with people in transition, such as students or others on their way to home ownership or social housing. Happily, what has happened over the past decade has been very significant in the evolution of the private rental sector.

When the Residential Tenancies Act 2004 was introduced, there were many naysayers saying that if one regulated the rental sector, it would cause it to collapse in its entirety. This has not been the case. In fact, more robust regulation has occurred hand in hand with more interest in the private rental sector as a place where people, including families, can spend longer periods. In the past, families would not have considered spending much time in private rented accommodation.

Some of the positive aspects, particularly regarding the Residential Tenancies Act 2004, were mentioned by the Minister of State. There have been very significant achievements, including security of tenure. Many do not realise that, before the introduction of the Act, the maximum security of tenure for a tenant, unless he had a lease, was 28 days, irrespective of the time he had spent in the property. A property is one's home. We call rented places dwellings and properties but they are not dwellings and properties for those who live therein; they are their homes and should be regarded as such.

Since the introduction of the Act, there has been some rent certainty. A landlord cannot simply increase the rent whenever he feels like it. Perhaps the most important change has been access to dispute resolution mechanisms. Many tenants have poor economic means and do not have the capacity of wealthier people to go to court. This has been a very significant departure.

The Minister of State mentioned some of the challenges faced by the Private Residential Tenancies Board, PRTB. I am very much aware of these. It is easy to criticise the board over some of its failures and to fail to recognise some of its very significant achievements. As stated, there have been delays, but it must be remembered the board has offered a cheap, accessible service to people who would otherwise not have been able to gain access to the court system.

With regard to the changes, I very much welcome the review of the Residential Tenancies Act and the measures that will be included in the forthcoming Bill to make the board more effective.

The Minister of State mentioned the Government's commitment to the deposit protection scheme. I have campaigned for this for many years. My support for the scheme arises very much from my front-line involvement with the housing sector. I have seen at first hand the importance of the introduction of such a scheme. Aside from the fact that I believe the scheme will make the whole rental sector more efficient and effective, there is evidence that large multinational companies, for example, want the measure introduced because it actually makes renting property in Ireland more secure. It will actually improve the conduct of business in the country. More important, over many years a loss has been incurred because of an attitude in society. To be honest about the matter, some landlords just do not return deposits. For many, a deposit of ¤800 may be a life's savings. I very much welcome the deposit protection scheme to be introduced in the upcoming legislation. I genuinely believe it will reduce the level of homelessness and, as such, will represent a saving for the State in the longer term.

The Minister of State mentioned the very welcome change on 1 February, namely, the end of the bedsit. I have seen some of the coverage in the newspapers and some of the statements by the Irish Property Owners Association implying the measure results in homelessness. That is absolutely not the position. As the Minister of State said, landlords have had four years to do as required. I am aware of a building with 17 bedsits that share three bathrooms. There is an elderly lady in her 70s who was afraid to leave her room after 6.30 p.m. because she was sharing with a number of men. Consequently, she was using a pot under her bed. Let us be absolutely honest: that is not the kind of housing in which the poor and people with low incomes should be made live. It behoves us to abolish the bedsit. There is nothing fuzzy or cuddly about the bedsit. It is telling that most people's only experience of a bedsit is as a university student or sharing the floor with a friend overnight. That is the reality and people should remember it when they talk in warm, fuzzy terms about the bedsit. This kind of outdated, substandard accommodation has no place in this country. It now behoves us to ensure that every local authority will take the steps necessary for us to see the end of the bedsit.

It is not normal in the House to mention an individual but I must mention the work of Mr. Colm Smyth of Dublin City Council, who stands out as a beacon of light among local authorities.

I ask the Minister to consider the introduction of a certification system that would require landlords to conduct the equivalent of an NCT. It would put the onus on landlords, rather than local authorities, to ensure their properties are compliant.

With regard to the transfer of the rent supplement to the local authorities, I very much believe it would be positive to provide for the housing assistance payment. It would be very positive, both for local authorities and people in receipt thereof.

My final point relates to arrears in the buy-to-let market. The threat facing that market is very significant. For a tenant, a rented property is his home. Statistics from the Central Bank show that in the region of 20% of buy-to-let mortgages are in arrears. This is very dangerous. The number is higher than that pertaining to residential mortgages. I ask the Minister of State to consider a measure introduced in regard to commercial property under legislation permitting the creation of real-estate investment trusts. This might allow conglomerates to take over without discommoding the residents. I refer to portfolios of buy-to-let properties that are being held by the banks.

I thank the Minister of State for attending. The work she is doing is excellent and leading to a better housing system.