Deirdre Clune (Fine Gael) | Oireachtas source

I am glad of the opportunity to contribute to the debate. I would like to raise an issue others wanted to raise in regard to the statement on buy-to-let investors. Some of the 600,000 homes rented are supported with rent support payments. The recent statement by the Governor of the Central Bank of Ireland encouraging banks to foreclose on buy-to-let mortgages is one we should take very seriously. Has the Minister of State conducted any research in this regard? I am sure she is aware of it, but has there been an examination of the impact this could have? Many buy-to-let mortgages were taken out at a time when banks were encouraging individuals to take out loans. I will not lay blame in this regard because there is fault on many sides, but families and individuals are dependent on these properties for their homes and should the banks foreclose on them, there will be social consequences for the families and individuals affected. It is an issue on which others and I have concerns and I have seen it documented. It is one I want to raise with the Minister of State directly because there will be consequences. We have heard many contributions from banks and their representatives on how they are moving forward in dealing with individuals who find themselves in difficulty. These properties are the family homes of many tenants. This needs to be recognised.

I commend the Minister of State in many respects. I mention quality and standards which were highlighted this week as the new regulations came into force on 1 February. There is a large number of rented houses in Cork city, providing accommodation for students in Cork Institute of Technology and University College Cork. During the years the standard of some of these houses left a lot to be desired, despite the fact that they were commanding high rents. The sale value of properties in and around the western suburbs of Cork city was always very high which I am sure was reflected in the income landlords received on them. Much purpose-built student accommodation was provided in Cork which was of a very high standard. This, in turn, resulted in improvements in the standard of rented accommodation, which was a positive development. It was always a contentious issue trying to get the local authorities - Cork City Council and Cork County Council - to inspect, but the level of inspections has improved in a big way. For a long time, the contribution local authorities received from registration bodies was not reflected in the level of inspections, but the number has increased. Given that the new regulations have been in place since 1 February, I am sure there will be a spotlight on the issue to ensure inspections happen.

The rental sector is a very important part of the economy. The State depends on private rented properties to house individuals it is supporting.

The rental accommodation scheme, RAS, is an important element of the housing policy. I would like to see it encouraged as it has worked extremely well, even though it took a while. The downturn in the economy has resulted in many landlords approaching local authorities and volunteering to have their properties taken on by the local authorities. It is a good scheme because it gives protection to the tenants and they no longer have to deal with a landlord. Landlords also benefit from continuity because a tenant may rent for five or six years. Local authorities gain because they can guarantee the rent is below market value as a result of a landlord agreeing to let his or her property for 12 months of every year. That measure also benefits landlords. I would like the Minister responsible to encourage all of the local authorities to expand the scheme whenever possible. Nobody wants to rent forever. Some tenants take a long-term view while for others it is a short-term measure, and this is how the rental support scheme has been described.

Rental rates continue to be challenging. Individuals in receipt of rent supplement find it difficult to access properties, particularly in Dublin and in Cork city. It is difficult to get landlords to comply with the level of rent required for the scheme. Landlords are unwilling to reduce rents in many areas. Tenants who are in receipt of rental income also become used to living in an area and their children attend the local schools, which are factors when it comes to choosing areas. Tenants may be able to rent a property for less but it would mean moving to a town that is located outside of the city in which they live. In many cases such a move would have a detrimental effect on families.

Fluctuating rents continues to be a source of friction. According to figures I have researched, rents in Cork increased by 2% last year. The local authorities must compete with the private rental sector and with a young mobile population who work. At the same time, individuals have been forced out of the city due to fluctuations in the rental property market. I know the Minister of State is aware of the problem. It continues to be a source of friction and difficulty for tenants, particularly in areas that now demand higher rents.