Jennifer Murnane O'Connor (Fianna Fail) | Oireachtas source

Fianna Fáil will not be supporting the Bill. The introduction of this highly-flawed legislation undermines attempts to provide real solutions to the housing crisis. As a party, we are on record in calling for stronger rent certainty measures and did so long before Sinn Féin. However, our measures were well thought out. Fianna Fáil published a policy document, Generation Rent - A new deal for Renters and Landlords, which aimed to stabilise rents immediately by restricting rents to an area-based rental index both within and between tenancies. This is similar to the model in operation in many German cities. This proposal would be for a maximum of three years pending annual reviews of the effects of the regulation of market supply.

By contrast, Sinn Féin's introduction of this half-page Bill, which attempts to make highly-flawed changes to a hugely complex area, represents political posturing of the most careless and irresponsible kind. The Bill is extremely defective. First, if passed, there is a strong likelihood that it would lead to short-term spikes in rents as well as an increase in tenancy turnover. This is what happened for two months prior to the introduction of the former Minister's rent regulations in January 2016. Second, while watered down, the recently introduced rent certainty measures have only just taken effect and it would be highly irresponsible to introduce new regulations, which would lead to more disruption and upheaval in the market, prior to reviewing the effects of the current rent certainty measures. Third, the Sinn Féin proposal to link rent increases and decreases to a measure of inflation through the consumer price index, CPI, is flawed. A report in 2014 commissioned by the PRTB found that had market rents been linked to the CPI during the period from 2000 to 2014, rents would be far higher than they are at present.

I look forward to the publication of the report on rent certainty and affordability, which is being prepared by the Department of Housing, Planning and Local Government and which is due before Christmas, because I think it will play a crucial role with regard to rents. The measures in the Bill before the House, the main provision of which aims to link rent increases or decreases to the CPI's inflation index, are highly defective. The new rent certainty measures only commenced in January 2016. At the very least, they should be given some time to bed down. Their effect on rent levels, units and supply will be reviewed prior to the introduction of the new regulations.

While it is currently illegal for landlords to end tenants' leases mid-contract, they can end existing tenancies if they want to sell their properties or if they want family members to use them. This is a problem because a landlord can end a tenancy any time he or she wants. This issue needs to be examined.

The continued shortfall in supply and increasing demand has put significant upward pressure on rents. Rental market increases are, in the main, a result of the legacy of under-supply in recent years. It is estimated that just 9,000 housing units were completed in 2014 compared with an estimated requirement of 25,000. The number of units completed in 2011 and 2013 was even fewer. The false notion that vacant homes and ghost estates somewhere in the midlands are a substitute for vacant homes where they are actually needed still lingers. We are still not building houses - even in the midlands. All this needs to be addressed. Far from keeping rents down, freezing rents in the manner proposed could encourage landlords to raise rents up sharply at the beginning and the end of tenancies, which would create a problem. Restricting prices to below market levels will only make supply even scarcer.

Fianna Fáil's proposal will encourage long-term leasing to give tenants greater security in their occupancies and allow families to consider renting as a long-term option. These changes will also alter the balance of power in favour of tenants, who would still be able to terminate their contracts after their probationary period with one month's notice. It is crucial that this is addressed. This proposal would be far more effective in stabilising rents than the measure proposed by Sinn Féin and would inflict less damage on the rental market.

The private rental sector faces a crisis in terms of supply and security. This has driven up costs and undermined the sector. Action is urgently required. Combining it with boosting supply is key. We will introduce a series of measures to provide security for renters. We also propose to introduce a family tenant lease to facilitate long-term renting above the current four-year cycle, to improve the quality of accommodation by means of a new certification scheme - to be operated by local authorities and approved by the PRTB - in order to improve tenants' rights and to review the current rent certainty scheme in the coming years

I will not support the Bill before the House. As the Minister is aware, I am a member of the Joint Committee on Housing, Planning and Local Government. I know he has a plan to build 47,000 houses. It is crucial that this plan be implemented as soon as possible so that those on local authority housing lists can be housed and others can qualify for inclusion on the housing list. The cap is a massive issue for me. In my local authority area, the cap is €27,500. My biggest problem is that most people do not qualify for the local authority housing list, which is causing another form of homelessness. Renting is crucial. The HAP scheme needs to be addressed. We must also ensure that rents units in the midlands or elsewhere assist people who do not qualify for the local authority housing list because, as the Minister is aware, the new HAP scheme only applies to people on the housing list. There are other people who fall through the cracks because they do not qualify for inclusion on the housing list but they need rent allowance. I ask the Minister to ensure this is also kept in place.