Lynn Ruane (Independent) | Oireachtas source

I move amendment No. 2:

In page 8, line 34, after “ratings” to insert “and to a minimum BER of not less than C1”.

I welcome section 3, which will define what a substantial change in the nature of the property means for the purposes of a landlord seeking to be exempted from the rent caps. The Bill will allow for an increase in energy efficiency, through the building energy rating, BER, as a ground for evading rent caps. I welcome the amendments that the Minister made on Committee Stage in the Dáil, such that phased increases will be needed depending on how low or high the original BER was. It is a superior approach to one where any increase in the BER would allow a landlord to evade the caps. We are proposing a minor change. It would, in effect, ensure that C1 would be set as a minimal eventual rating in all tenancies citing this section. Section 6(1)(c) of the Bill proposes the insertion of a new subsection (5A) after section 19(5) in the Residential Tenancies Act 2004, and the proposed subsection (5A)(a)(ii) states that a rating must be increased "by not less than 7 building energy ratings" to evade the caps. That in effect sets a minimum BER of C1. The proposed subsection (5A)(a)(iii)(V) states that if the BER is at C3 or higher, it must be "improved by not less than 2 building energy ratings", again setting the effective minimum BER to C1.

Amendment No. 2 would be additional to the proposed subsection (5A)(a)(iii)(IV), which relates to properties with a rating of D1 or lower, to ensure that when a landlord is increasing the BER, the eventual minimum rating cannot be lower than C1. C1 is an objectively high energy efficiency standard and this amendment would align that subsection for lower-related properties with the provisions of the other sections. If this work is being carried out by landlords anyway, we should set objectively high standards for how the efficiency rating is improved. Energy wastage through energy-inefficient buildings is a significant contributor to greater reliance on fossil fuels. If Ireland is to stand any chance of hitting its international targets, we need to make substantial strides on energy efficiency. If a landlord wants to evade rent caps, it must be justifiable and the setting of objectively high energy efficiency standards will allow for that justification. I hope the Minister can accept that amendment.

Amendment No. 4 proposes that a landlord would not be able to cite a substantial change to the property as grounds to evade the rent caps in rent pressure zones without the Residential Tenancies Board, RTB, first carrying out a physical inspection of the property in question. Amendment No. 5 is a consequential amendment. While I recognise the increased regulatory burden this would place on the RTB, we are now in a position where the rent pressure zones are not working and we need to act. Rent increases, as demonstrated in the recent daft.iereport, far exceed the ostensible 4% cap and it is through the unfair and unjustified usage of these kinds of exemptions that landlords evade the caps. While I welcome the overall attempt to better define and regulate these exemptions, we are now in an emergency situation that calls for an en emergency measure. Good landlords would have nothing to fear from this amendment as a justified rent increase would be easily verified by the RTB. It would be a deterrent to bad landlords and would be so significant that in my estimation, it could fundamentally reform how rent pressure zones work for the better. I recognise that it could be difficult but the scale of the current crisis requires it. The increased penalties and detailed provisions on what substantial renovations actually are will mean nothing if bad landlords are not detected for illegal or unjustifiable rent increases. I hope that the Minister can accept these amendments.