Seanad debates

Tuesday, 21 May 2019

Residential Tenancies (Amendment) (No. 2) Bill 2018: Report and Final Stages

 

2:30 pm

Photo of Fintan WarfieldFintan Warfield (Sinn Fein) | Oireachtas source

I move amendment No. 3:

In page 12, between lines 21 and 22, to insert the following:

"Amendment of section 34 of Act of 2004

13.Section 34 of the Act of 2004 is amended by the deletion of paragraph 3 of the Table to that section.".

I have resubmitted amendment No. 3, which removes the selling of a property as a ground for ending a tenancy. In the context of the current rental crisis, we have seen prospective landlords purchase houses for buy to let where they have no intention of living in the house but see it as an investment opportunity that was a return in terms of rent and perhaps in terms of sale later on. The difficulty here arises when the new owners of the property seek to end an ongoing tenancy. Under the 2004 Act, they are permitted to do so. Many of those outside rent pressure zones or those seeking to evade rent pressure zone obligations seek to do this so that they can inflate rents substantially and see greater return on the investment. However, for the tenants in situ, it ensures eviction without reasonable cause or fairness. It ensures that under the current market, many families that have built a life and that, for all intents and purposes, are good tenants find themselves re-entering a market where rental options in that locality are usually limited and probably at an inflated price compared with what they were paying. It does not only affect families; it affects many students and young professionals who, typically, are not of great means. For example, a couple I know renting in a shared Dublin city apartment were recently given notice to quit for the purposes of sale of the property. They were paying €750 per month for a double room. Two months later, they found a property that would accept them and are now paying €1,250 per month for a room in an apartment 50 m away from their original letting. They may have found cheaper options but, in reality, time was against them as they had less than two months to uproot their lives and go into a market of two-tier rents.These are the people who are now being told by the Minister that co-living spaces at €1,300 per month are now a viable option for them. So-called co-living is not a solution to the rental crisis. As Sinn Féin sees it, it is a step on the road to future tenements. The Minister's comments about young people having to make sacrifices in terms of rental accommodation are frankly bizarre.

The Minister also referred to the awkward situation where a young couple buys a rent-to-buy property and must look to evict current tenants. While this is not a nice situation for anyone involved, the awkwardness of this situation is not sufficient for us not to allow for leniency for the tenants in situ. The consequences of evicting tenants, making them vulnerable to homelessness or condemning them to inflated rents, far outweigh the consequences for the buyers here. While we discussed this on Committee Stage, I remain unconvinced that this amendment is not a legitimate call to make. It should receive the support of Government.

On numerous occasions, the Minister has referred to the constitutionality of such an amendment. However, he has not elaborated on the basis for this. While commercial properties are typically different arrangements and involve longer leases, owners still cannot use sale as a reason for ending a tenancy. The Constitution is not so prescriptive that it discriminates between commercial and residential lettings and without being furnished with any legitimate legal opinion to question the constitutionality, I must proceed with my amendment.

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