Marie Sherlock (Labour) | Oireachtas source

I move amendment No. 6:

In page 6, between lines 12 and 13, to insert the following:

“State deemed to be rent pressure zone

5. The Principal Act is amended by the insertion of the following section after section 24BA: “24BB. With effect from the date section 10 of the Residential Tenancies (Amendment) (No. 2) Act 2021 comes into operation and notwithstanding anything to the contrary in section 24A, orders under section 24A(5) shall be deemed to have been made in respect of the administrative areas of every housing authority in the State which on that date are not, or are not deemed to be, rent pressure zones; accordingly, each of those areas is deemed to be a rent pressure zone from that date for a period of 3 years.”.”.

I am struck by the contribution of Senator McDowell. I know he has left the House now but it will be on the record. There is a point to be made about the future of renting in this country. Right across this Chamber, there is a desire to ensure it is a sustainable way of life for people because that is the future for many people in this country. We must not treat renting as a transient existence. It can be a sustainable, permanent solution for certain persons who will never be able to afford to buy a house. We are putting forward these amendments to ensure there is fairness for renters on a permanent basis into the future.

I heard Senator McDowell say that if some of the amendments were temporary measures, they may be justified. It is important that the tide is turned. We must not treat tenants as a temporary phenomenon who will only be renting for a few years. The reality is that renting will be part and parcel of life for young people and older people. In particular, an increasing number of those facing into retirement are now renting and have no prospect of buying anytime soon. It is vital that we get the protections for renters right.

Amendment No. 6 intends for the whole country to be declared a rent pressure zone. As I understand it, there are two criteria to designate an area as a rent pressure zone. Those are that there needs to have been an increase in rent of 7% in four of the past six quarters and the rent in a particular area must also be above the national average rent. I have a fundamental difficulty with the second criterion. The national average rent is, of course, driven by the main urban centres. A massive increase in the cost of rent in Leitrim, Longford, Clare or a very rural area in Cork is no less important than a significant increase in the main urban areas. It is in the context of that criterion that there are, according to survey data collected by Daft.ie and the Residential Tenancies Board, double-digit rent increases in the likes of Leitrim, Kilkenny, Clare, Roscommon and other counties. The question has to be asked as to why the whole country has not been designated a rent pressure zone. I think it was September 2020 when an area was last added to the list. There are very serious questions to be asked now as to why no other area has been added. We want to hear the plans the Government does have to add additional areas. We believe, based on the evidence that is in front of us, that this rental crisis is not confined to the main urban areas but is happening across the country. We hear stories from some very rural areas about massive demand for places to rent. It is a good thing in some ways. People are leaving the main urban areas and going back to the areas where they grew up because they are able to work from home. That is a good thing. The downside is that some people are no longer able to afford living in the city and are being forced to relocate. Nonetheless, there is rent pressure in areas where previously we would not have expected it. There is a very strong argument to be made that the whole country needs to be made a rent pressure zone.