Paudie Coffey (Waterford, Fine Gael) | Oireachtas source

Amendments Nos. 2, 53, 54, 83 and 86, taken together, will bring much-needed stability to the rental sector pending the coming on stream of the supply of new housing. These amendments will extend the period between the reviews of rent, extend the minimum period of notice of new rent, and introduce new requirements for the notification of new rent and the formal provision of information as regards the confirmation of tenancies and the rights and obligations of tenants and landlords.

Under the 2004 Act, the rent for all tenancies may be reviewed every 12 months. Amendment No. 53 provides that this period be extended to 24 months. This means that anyone who has had a rent review in 2015 will not face a rent review again until at least 2017. There is no change to the mechanism for determining rents under legislation, which is by reference to the market rent, but there will now be a longer period of predictable rent. The provision is subject to a sunset clause such that the period will revert to every 12 months in four years' time.

The Act currently provides that a landlord give his or her tenant a minimum of 28 days' notice of new rent. Amendment No. 54 provides for the extension of this notice period to a minimum of 90 days, giving tenants a longer period to challenge or dispute the proposed new rent or find new accommodation if necessary. Such a measure was recommended in the DKM report entitled Rent Stability in the Private Rented Sector, which was commissioned by the PRTB.

Amendment No. 54 also provides that a landlord, when notifying a tenant of new rent as required under section 22 of the 2004 Act, will now have to provide the notification in a prescribed form. The form will include the provision of information to the tenant in relation to the dispute resolution procedures that a tenant can pursue through the PRTB. The form will also have to be accompanied by information on the rents of three other similar dwellings in the area. The purpose of this amendment is to ensure that tenants are adequately informed on prevailing rents and aware of their rights under the Act, particularly in regard to market rent and the procedures for bringing a dispute to the PRTB where a tenant believes the new rent is in excess of market rent.

While the PRTB currently sends information of a tenancy registration to the landlord, amendment No. 83 provides that, in future, both landlords and tenants will be notified of a tenancy registration in a prescribed form and the notice will, inter alia, advise both parties of their rights and obligations relating to the setting and review of rent, security of tenure under Part 4 of the Act, determination of tenancies and dispute resolution procedures available through the PRTB.The confirmation form will also state that the PRTB routinely discloses information to the Revenue Commissioners. In addition to notifying the PRTB of an increase in rent within one month, as is currently required under section 139 of the Act, landlords will be required as a result of amendment No. 86 to provide additional supporting information in a prescribed form. This will include a signed statement by the tenant that they have been made aware of their rights on rent and rent reviews along with information on market rent for three similar dwellings in the area. This amendment will further ensure that tenants are fully informed of their rights in relation to market rent. I would like to flag to the Seanad that the Government intends to bring forward another amendment on Report Stage to section 139 regarding further information on the registration form. Together with the new notice provided for under section 22, this will ensure that all parties are aware of their rights and the consequences of any infringement of those rights. This will assist in protecting tenants from illegal rent increases and will also act to discourage landlords from breaking the law.

In regard to the Opposition amendments grouped with these amendments, amendment No. 102 proposes to amend the 2004 Act such that the rent would be reviewed by reference to the rate of inflation. In providing for an extension to the period in which rent reviews may occur from 12 to 24 months, the Government decided on an approach that would bring stability and predictability for the tenant but without changing the fundamental mechanism for the setting and reviewing of rent as laid down in the 2004 Act. The Government is mindful of the need not only to protect tenants from the circumstances that currently exist, but also not to deter investment in any way. Amendment No. 53 achieves that balance and so I cannot accept the amendment tabled by the Senators.

Amendment No. 103 proposes that a review of rent may not occur more often than once in each period of 24 months. This is already provided for by the Government amendment No. 53.

Amendment No. 104 proposes to empower the PRTB to work with local authorities to set a local standard of rent based on the size and location of the accommodation. This would entail a fundamental departure from the principle laid down in the Act whereby rent is set by reference to the market, where a market rent is defined as the rent which a willing tenant, not already in occupation, would give and a willing landlord would take for the dwelling. As I have outlined already, the Government has decided not to alter the mechanism for the setting and reviewing of rent as laid down in the 2004 Act and has decided on an approach that balances the needs of tenants and landlords and investors alike. For this reason, I cannot accept the amendment.

Amendment No. 2 amends the commencement provision in the published Bill to provide for the commencement on enactment of three of the provisions announced in the package of measures to support housing supply and rent stability generally. These are the extension of the duration between rent reviews from 12 to 24 months, the extension of the period of notice of a new rent from 28 days to 90 days and the extension of the period of notice of termination of a further Part 4 tenancy. Rents are increasing and it is imperative that we act quickly in order to bring stability to the market. The Government amendments to the Bill will ensure stability and predictability and a level of certainty that will stabilise the market until such time as the property and construction sector recovers to sustainable levels and the supply increases and there is normality in the rental sector.