Eugene Murphy (Fianna Fail) | Oireachtas source

-----to listen to the debates and that he wants to be part and parcel of this process.

Regarding the new situation concerning rents, the cap at 4% was replaced on 6 July 2021 when the rent increase in the RPZs was prohibited from exceeding general inflation as recorded in the HICP. The aim was to bring about far lower rent increases for the estimated 74% of all tenancies in the RPZs. The HICP average rate of increase was 0.73% over the three years to July 2021. Given the continuing rise in inflation, however, a rent increase cap of 2% per year will apply under the provisions of this Bill when the HICP inflation rate is higher. Going back to July, the Minister was very clear regarding the need to monitor inflation carefully. We now have a little difficulty with inflation and we must keep an eye on it. It is worth pointing out that while in July the rate of HICP inflation had averaged 0.73% per annum over the previous three years, it has now risen to 1.6% over the year ending in June 2021.

Given the continuing rise in the HICP inflation rate, the Minister has moved quickly to engage with the Attorney General and to secure the Government's approval to introduce a 2% cap on rent increases in RPZs. This measure respects constitutionality, protects the property rights of landlords and aims to safeguard continued investment in the sector by existing and new landlords to deliver the requisite supply of high-quality rental accommodation. We acknowledge that we have difficulties and problems. The Minister has been in his Department for just over a year and is working day and night with his officials to improve significantly the overall situation in housing. I know this from his engagement with us at parliamentary party meetings.

The Government investment of €4 billion is significant. I can safely say that in a fairly short space of time we will move to a situation where there will be some easing of the difficulties that people have. I admit that will not happen overnight or in the next couple of days, but we must all move to try to protect renters in the best way possible. This whole issue goes back to supply and demand. In this regard, I have no doubt that the new drive by the Government to commit to building more houses, as clearly laid out in the plan, will come to terms with this problem, even allowing for the difficulties caused by the impact of Covid-19 and everything else.As I said, it would be great if it could be solved overnight but it cannot. However, I see in the shorter term many improvements.

We should also acknowledge in all of this that we have a world problem here. It is not only an Irish problem; it is a problem in Europe, the UK, Northern Ireland and the USA. It is sad to see people having difficulty with their housing and with their rent and we all get representations.Housing is not only an issue in Ireland. A housing crisis exists in many parts of the world.

I accept fully, and take the Minister's commitment as sincere, that he is trying to improve the situation for renters, and he is making strides in that regard. We have tenants in situin our first cost-rental homes availing of rents that are up to 50% below the open market rate. Applications for other schemes have recently closed and given the volume of applications, we now know that we need to significantly scale-up cost rental in Ireland. Housing for All clearly sets us on a path to achieving 18,000 cost-rental homes between now and 2030. That is an ambitious target but I do not doubt the Government's commitment, the Minister's commitment and his officials' commitment.

Most private tenancies in Ireland are fixed-term or periodic tenancies. The Residential Tenancies Act 2004 gave tenants the right to stay in rented accommodation for up to four years following an initial six-month period. The right is known as the security of tenure or a Part 4 tenancy. The Planning and Development (Housing) and Residential Tenancies Act 2016 then extended the duration of a Part 4 tenancy from four to six years for all tenancies created from 24 December 2016.

Section 5, which somebody might have already referred to, proposes to amend the principal Act to provide for enhanced tenancy protections on the basis that after six months' duration a Part 4 tenancy is established for an unlimited duration and not subject to expiry at the end of a six-year term, should the landlord exercise his or her right to terminate the tenancy as currently provided under section 34(b) of the principal Act. The provision will apply prospectively in respect of new tenancies commencing six or more months after the passing of this Bill. As existing Part 4 and future Part 4 tenancies expire over time or are renewed, it will involve the creation of a new tenancy of unlimited duration in respect of any such dwelling, should it remain in the rental sector.

Under Housing for All, an average of 2,000 cost-rental units are planned every year to 2030. More than 1,500 cost-rental homes are to be delivered in 2022 and rents are aimed at a minimum of 25% below open market rate and providing long-term security of tenure. The first cost-rental tenancies are in place, I understand, in Balbriggan, County Dublin where some tenants are availing of the rents at 50% of market rate. There were recent developments in Leixlip, County Kildare in that regard as well. Rents for tenants in the scheme are expected to be at least 40% below the market rent. I specifically mention those two areas because that is proof that this is working and will work. That is why we have to go with this. That is why we have to ensure that renters do not feel threatened and know that they will not be looking over their shoulder from one six-month period to the next because that is no life for anybody or any family to live.

The Residential Tenancies Board will be allocated €11 million in 2022 - we should not forget that as well - and €10 million was allocated to local authorities to carry out rental inspections. All over this and Housing for All, there is a genuine commitment to tackle this whole area. Of course, renting is quite a big part of it. Moving ahead with this legislation, I am confident that it will further clear the pathways and make it more secure for the tenants. That is what I and most fair-minded people would welcome.