Paul Gavan (Sinn Fein) | Oireachtas source

I move recommendation No. 8:

In page 18, between lines 9 and 10, to insert the following: "Report on relief for renters

12. The Minister shall, within six months of the passing of this Act, prepare and lay before Dáil Éireann a report on the introduction of a refundable tax credit payable to private rental tenants not already in receipt of any State subsidy, equivalent to 8.3 per cent of annual rent payable, at a minimum value of €750 and maximum value of €2,000, accompanied with the introduction of a ban on rent increases in the private rental sector for a period of 3 years.".

The Minister is very welcome. This recommendation calls for a report on the introduction of a refundable tax credit payable to renters, equivalent to one month's rent, set at a minimum value of €750 and a maximum value of €2,000, coupled with a ban on rent increases for a period of three years. Since the Government took office, rents have increased by a staggering 27%. This, in any market, is a quite shocking increase. According to the Daft.ie reports, the average rent has increased by €405 per month under the Government, which is nearly €5,000 per year. Renters are facing crippling housing costs under the Government and its housing crisis.

For years, Sinn Féin has called for the introduction of a refundable tax credit to put one month's rent back in renters' pockets, together with a ban on rent increases for a period of three years. For years, the Government rejected this proposal, claiming it would be, in the words of the Minister for Public Expenditure, National Development Plan Delivery and Reform, Deputy Donohoe, a direct transfer of public money to landlords. The Tánaiste said it would push up rents. Of course, that is what could happen in the absence of a ban on rent increases. That is precisely what the Government has done. Without capping rents, the rent tax credit introduced would go straight into the pockets of landlords, providing ample reason for them to increase the rent on their tenants. The rent tax credit is not refundable. Moreover, only a fraction of those eligible to claim the rent tax credit have done so.

It is also clear that the credit is insufficient to adequately support renters under severe financial pressure as a result of the Government's housing crisis. The recommendation therefore calls for a report on the introduction of a refundable tax credit, equivalent to 8.3% of a renter's annual rent – in other words, one month's rent – with a minimum credit available of €750 and a maximum credit available of €2,000. Crucially, the report would also analyse the proposal together with a three-year ban on rent increases.