Marie Sherlock (Labour) | Oireachtas source

I move amendment No. 1:

In page In page 3, line 26, after “2021” to insert “may not occur in the period of 36 months from the commencement of that section and”.

I thank the Minister of State for coming to the House. I broadly welcome the concept of this legislation, especially the acknowledgement that using the harmonised index of consumer prices, HICP, as the benchmark is now appropriate and that a new benchmark for increases in rents within rent pressure zones must be put in place, which, as is set out in the Bill, is 2%.

Amendment No. 1 seeks to introduce a rent freeze for a period of 36 months before a landlord would be subject to a rent cap of 2%, as set out in the Bill. For many months, the need for a rent freeze has been the repeated refrain by my colleague, Senator Moynihan. Recently, rents nationally have increased by 6.7%. Non-compliance with the rent caps within a number of the rent pressure zones has given rise to rent increases in excess of the 4% limit. Looking at average rents in Dublin in the area in which I and other Members, including Senator Fitzpatrick, are based, there are rents in excess of €2,000 per tenancy. We know of families and individuals who pay in excess of 40% of their net income on very standard or even worse than standard living accommodation or living conditions within private rented accommodation. The time has come for a radical measure to be introduced. A rent freeze cannot be the only solution and must be part of a number of measures currently taken.

A great deal has been said about the need for supply. We in the Labour Party have echoed that. However, within the constituency of Dublin Central, which I know best, we have a degree of supply because there are approximately 4,500 build-to-rent student accommodation and co-living units that are either going through the planning system or under construction, relative to about 2,500 conventional apartments.Supply is not necessarily an issue in some of the areas in which Senators are based; the issue is the type of supply and its affordability for those who desperately need affordable and sustainable rental accommodation in this city.

Amendment No. 2 effectively sets out that any rent increase should be confined to 2%. Some landlords attempted to impose cumulative increases this year as a result of the rent freeze last year. I have been contacted by tenants regarding a proposed 8% increase in their rent. Landlords are effectively able to claim that they should increase rents on the basis of last year and this year. Of course, 8% is an enormous figure. The increase possible under a 2% annual rent increase would, obviously, be less, but if there has not been a rent revision for several years, that cumulative percentage increase can be significant. We are clearly calling for 2% to be the maximum that can be sought in any rent increase, rather than the entitlement of a landlord on an annual basis.