Seanad debates

Monday, 5 July 2021

Residential Tenancies (No. 2) Bill 2021: Committee and Remaining Stages

 

10:30 am

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

I will comment on the four Government amendments. Amendment No. 13 inserts a new section 6 into the Bill to amend section 20 of the 2004 Act which provides for frequency of rent reviews. Currently, section 20 of the 2004 Act provides that, generally, rent reviews are allowed to occur no more frequently than annually in an RPZ or biannually outside an RPZ. However, a rent review is allowed during the 12-month review period in an RPZ, or during the 24-month review period outside an RPZ, if a substantial change in the nature of the rented accommodation occurs which warrants an immediate change to the existing rent.

Section 6 of the Bill provides a technical reference to ensure that any rent review which occurs on foot of a substantial change in the nature of the accommodation provided can only occur where "substantial change" falls within the meaning of the existing section 19(5A) of the 2004 Act referring to a substantial change in the nature of accommodation. This was in the original Act so it is not a new change that I am introducing. The aim is to ensure that a rent review is only allowed when a real and truly substantial change occurs that warrants such a review.

Section 6 of the Bill also provides for biannual rent reviews to continue to operate outside the RPZ during the period to 31 September 2024. That has been extended from 31 December 2021 and provides for a three-year extension. The aim here is to provide rent certainty for tenants outside RPZs for a minimum two-year period at a time of rising rents and constrained supply in the private rental accommodation sector.

Amendment No. 15 inserts a new section 8 into the Bill to amend section 24B of the 2004 Act, which provides for areas deemed to be RPZs. Section 8 of the Bill provides for the extension of the deemed RPZs in Cork city and the Dublin local authorities to continue to operate until 31 December 2024. Again, that has been extended from 31 December 2021. These local authorities were deemed to be RPZs and that immediately came into effect on the passing of the Planning and Development (Housing) and Residential Tenancies Act 2016, which introduced rent controls from 24 December 2016.

Amendment No. 15 is specifically required to extend the operation of those deemed RPZs up to the end of December 2024 to protect tenants during a sustained period of constrained supply in the private rental accommodation sector, as the sector has been negatively impacted by Covid-19. Amendment No. 18 introduces a new section 12 to amend section 8(2) of the Residential Tenancies (Amendment) Act 2019 to provide for RPZs designated under section 24A, concerning rent pressure zones, of the 2004 Act to continue in operation until 31 December 2024. The aim is to continue rent controls in these RPZs for a further three years until 31 December 2024 to protect tenants during a sustained period of constrained supply in the private rental sector.

Amendment No. 23 proposes to consequentially amend the Long Title of the Bill to reflect that, in respect of amendment No. 18, section 8(2) of the Residential Tenancies (Amendment) Act 2019 will now provide for designated RPZs to continue in operation until 31 December 2024. Again, this is an extension from 31 December 2021.

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