John Halligan (Waterford, Independent) | Oireachtas source

I thank the Senator for raising this important issue. The Minister for Housing, Planning and Local Government, Deputy Eoghan Murphy, sends his apologies for not being here today.

The aligned and shared vision of the national planning framework, in tandem with the national development plan, represents a joined-up planning and investment strategy for Ireland's future growth and development, focused on a series of ten shared national outcomes. It includes a number or ambitious climate action objectives specific to the built environment sector, including delivering, of course, more sustainable growth of compact and connected cities, towns and villages. Greater energy efficiency is a key benefit of this type of compact growth. The multi-storey and terraced buildings in close proximity that this type of development involves require less energy, as the Senator will know, and make renewables-based systems of energy distribution such as district heating or area-wide technology upgrades more feasible.

The Department of Housing, Planning and Local Government has responsibility for multiple actions in the all-of-government plan to tackle climate breakdown, including aspects of the built environment. The Department is driving a number of actions that will contribute to more energy efficient housing. In terms of social housing, securing improved energy efficiency has been the focus of concerted action for some time. Indeed, funding of €135 million has been provided from 2013 to 2019 to improve energy efficiency and comfort levels in over 70,000 local authority-owned social housing homes. In addition, energy efficient measures have been incorporated into the 9,000-plus vacant social housing homes that have been returned to productive use since 2014. This effectively means that approximately 50% of our social housing stock has had a certain degree of energy retrofitting works carried out, thus improving comfort levels and addressing issues around fuel poverty. This programme has two phases. The bulk of the work undertaken to date has been centred on phase 1, which has focused on lower-cost improvements, such as cavity wall and attic insulation. Phase 2 will target higher-cost improvements such as fabric upgrades and glazing. The roll out of phase 2 will be a key component of the retrofitting ambitions for the housing stock more generally set out in the Government's climate action plan, and will be taken forward in the years ahead in light of available resources.

Rented properties present a particular challenge in terms of energy efficiency upgrades owing to what is termed as a split incentive. I do not know if the Senator is aware of that effect but it refers to instances where landlords meet the cost of improvements, while tenants reap the bulk of the benefit. The objective is to identify the most appropriate policy interventions that would minimise adverse impacts on the availability of accommodation, while improving energy efficiency and addressing fuel poverty, of course. In that regard, there is an advisory group that is comprised of the Departments of Communications, Climate Action and Environment and Housing, Planning and Local Government and the Sustainable Energy Authority of Ireland. The advisory group is reviewing the issue of the split incentive in the rental market. The group will shortly initiate a public consultation with the focus on identifying proposals, which will help to address the issue. That public consultation will be open to everybody, politicians and the like.

From 1 November 2019, building regulations will require that for all dwellings, including rented dwellings, where more than 25% of the surface area of the building envelope is renovated, the energy performance of the renovated dwelling should achieve a building energy rating, BER, of B2 or the cost optimal equivalent.

All newly-constructed properties built to the new Part L regulations from 1 November 2019 will typically require a BER rating of A2 for a new dwelling subject to transition arrangements. Enhancing protections for tenants is a priority for the Minister for Housing, Planning and Local Government. To that end, the Residential Tenancies (Amendment) Act 2019 introduced a number of key measures and reforms designed to enhance protections for tenants across the board, including applying the new Residential Tenancies Board, RTB, sanctioning regime to improper conduct by landlords who contravene the tenancy termination provisions.The Act provides that where a landlord terminates a tenancy because he or she needs to substantially refurbish and/or renovate the property, the property must be offered back to the former tenant who provides his or her contact details on completion of the works. The Act defines "Substantial change in the nature of rental accommodation" to illustrate the type of works that qualify for the exemption from the rent pressure zone, RPZ, rent increase restriction include works that result in a permanent extension, increasing the floor area by 25%, an improvement in the BER by at least seven ratings, an improvement in the BER by three or more ratings where the original BER was D1 or lower, or an improvement in the BER by two or more ratings where the original BER was C3 or higher, taken together with other changes. This provision allows the landlord to set a fair rent to reflect the substantial upgrade works carried out for the benefit of tenants.

In addition, the notice periods for the termination of tenancies in the rental sector have been extended significantly. The Minister for Housing, Planning and Local Government will be continuing to ensure improved energy efficiency and associated amelioration of fuel poverty, both in social housing and the private rental sector, will continue to be the focus of attention in the years ahead.