Kathryn Reilly (Sinn Fein) | Oireachtas source

I welcome the Minister to the House. I live in rented accommodation. I am fortunate that I have had a very good relationship with my landlord. I have not had any problems with him. It is a very professional relationship but I know not everyone is fortunate to have that kind of relationship.

Along with other Members I spend a good deal of my time doing constituency work with people who live in private rented accommodation in the private rented sector. There are concerns about a number of problems that are becoming increasingly widespread in the sector. The first issue I will touch on is rent supplement and rent supplement reviews. The dramatic increase in the number of households claiming rent supplement is a direct consequence of the failure of successive Governments to invest in social housing in a meaningful way, and more of that is needed. As a result of that the cost to the Exchequer from rent supplement claims has reached stark levels. To cut the cost the Department of Social Protection has cut the rent supplement caps and introduced annual rent supplement reviews. We are told the purpose of that is to force down the price of rents in the rental sector but there is growing evidence that the impact of these cuts and reviews is to force low-income families deeper into poverty as they struggle to meet the rent shortfalls from their low salaries or social welfare payments.

I am aware of two cases where young mothers were made homeless as a result of the rent supplement reviews that left them unable to afford their rental accommodation. In one case, six months on the family involved are living with family as they are unable to find suitable accommodation at the rates offered post the review. Has the Minister's Department conducted any research into the impact of the rent supplement reviews on the caps, rent levels and household poverty and financial hardship?

The other issue that is emerging as a growing problem is buy-to-let properties about which Members spoke earlier and those properties being placed in receivership by banks when the owners default on their mortgages. I am aware some rental tenants are being left in an uncertain, insecure position as both the receiver and the landlord are demanding rental payments. If the tenant transfers rent payments to the receiver there is not an automatic guarantee that the receiver will accept all of the landlord obligations outlined in the tenancy agreement or honour the return of the deposit. In light of that I ask the Minister of State if she would consider requesting the Central Bank and the Financial Regulator to develop a code of conduct for the banks and receivers detailing the obligations the receiver takes on when appointed to a rental property, including respect for the duration and terms of the tenancy agreement and honouring the tenant's deposit.

Many of the other issues have been dealt with and I do not want to cover old ground when other Senators wish to speak.