Lynn Ruane (Independent) | Oireachtas source

I move amendment No. 13:

In page 33, after line 34, to insert the following:“Amendment of section 19 (setting of rent above market rent prohibited) of Act of 2004

27. The Act of 2004 is amended by the insertion of the following new section after section 19:

“19A.(1) Any subsequent increases in the level of rent under the tenancy of a dwelling shall not be greater than the rate of inflation, as provided for by the Consumer Price Index as issued by the Central Statistics Office.

(2) The provision outlined in subsection (1) will remain in effect until 31 December 2019 at which point the Minister may by order extend the specified period which this section will continue to apply.”.”.

My contribution is mostly on behalf of Senator Colette Kelleher, who cannot be here. We met earlier to discuss the amount of work and research she has put in, especially regarding Threshold's submission.I wish to speak about the need for rent certainty across the State. According to the Private Residential Tenancies Board, over 704,000 people are in registered residential tenancies, while an unknown number are in unregistered residential tenancies, all of whom are affected by rent increases. Many renters wait anxiously for the dreaded call from a landlord demanding a rent increase. For some, it will mean cutting back on basic necessities, while for others, it will mean moving across the city or county in search of cheaper rent. For some children, it will mean leaving school friends behind. For a few, the call will be the beginning of a spiral into long-term homelessness. We know that the housing market is broken and we all have to accept that it needs interventions, with a major focus on hosing supply. Rebuilding Ireland is ambitious and commendable, but without solid rent certainty, that policy is and will be undermined.

According to the Private Residential Tenancies Board, private rents rose by nearly 10% across the country in the second quarter of 2016 when compared with 2015. These statistics are compiled by the ESRI and this is the most accurate and authoritative rent report of its kind on private accommodation. The consumer price index compiled by the CSO shows that in the same period across the economy prices rose by only 0.4%. An increase in rents of 10%, while prices in other areas of the economy have increased by less than 1%, proves that rents are out of control and that urgent action is required. We need to do all we can to stop rents from spiralling, end the fear and uncertainty and ensure people can afford to stay in their homes. Last year a staggering 345 people slept rough on the streets of Cork. I should really have said that in a Cork accent, as I am sure Senator Colette Kelleher would appreciate it.