Malcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

I thank Senators Warfield, Boylan and Gavan for tabling the motion. I will respond to a few points raised by Senators during the debate. Senator Warfield asked a question about the housing referendum. We expect the Housing Commission report will be furnished to the Minister, Deputy Darragh O'Brien, by the end of March and brought to Government soon after. Points were put by other Senators about numbers for inward migration and emigration. We certainly do not treat housing as a commodity, as was suggested. We treat it as a common good and of immense value, and a necessity to society.

Senator Boylan also raised the retrofit issue. The intention of the split incentive and other issues relating to BER costs and retrofits are being examined by the ESRI, which is due to report to Government in the coming months. Landlords can get grants for houses they rent out and budget 2023 also introduced tax measures for landlords for rental properties. Senator Moynihan raised the issue of landlords leaving the market. Senator Black referenced the Government's modest housing achievements. I do not think they are modest. There is no doubt we have much more to build on, but there has certainly been good output in the past number of years. Senator Gavan raised the heartbreak for families, which is acknowledged. There are also thousands of people receiving the keys to their new homes all over the country, and that is something that has ramped up significantly. The eviction ban was a short-term measure. It did not reduce homeless numbers and we have had that debate. It has been well put out. Senator Dolan mentioned affordable housing and development plans and raising HAP eligibility thresholds. That is absolutely welcome. They were the main points raised.

I thank all Senators for their contributions to the debate. I reassure them that every single decision Government makes is carefully considered and needs to be, in particular in the context of housing. Government recognises there is a need to accelerate delivery of affordable housing, cost-rental accommodation and social housing, including via acquisitions. The most effective way to reduce and stabilise rents in the medium to long term is to increase supply and accelerate delivery of housing for the private and social rental sectors. Ensuring the successful implementation of Housing for All is a key priority of the Government. This is underpinned by the unprecedented level of Exchequer investment for housing in budget 2024. This year will see more than €5 billion in capital investment in housing - a record figure. We will continue to increase the housing stock in the country while progressing major reforms in our housing system. No one in government underestimates the scale of the housing challenge. We must ensure we enhance supply as much as possible, especially in the rental sector, and supply is increasing. The Government's Housing for All plan is having a real impact. More homes are being built and bought than for a generation. The latest Housing for All progress report for quarter 4 2023 shows the number of new homes delivered last year was the highest for 15 years with 32,695 new homes completed in 2023. That was 10% higher than in 2022 and exceeding Housing for All's 2023 target of 29,000 by almost 13%. The pipeline is also strong. The latest data on the number of commencement notices and residential construction starts published on 18 January 2024 shows that almost 33,000 new homes were commenced in 2023 and permission granted for more than 37,600 homes. The latest CSO data on planning permissions shows that nationally 9,662 home dwelling units were granted planning permission in quarter 3 of 2023, which was an increase of 43.3% on quarter 3 of 2022. This is the highest number of annual commencements on record, an increase of more than 21.5% compared to 2022 and the highest number of annual residential commencements since records began in 2014.

While the Government opposes Sinn Féin's wide-ranging motion, its countermotion seeks to address the important points raised and I will speak to them in the time available. The rent index report published by the RTB and ESRI is the most accurate and authoritative rent report of its kind on the private rental sector. Compared to other market monitoring reports produced for the rental sector, the RTB-ESRI rent index has the considerable benefit of being based on regulatory data covering all new tenancy registrations, regardless of how the property was advertised for rent. The rent index reveals two metrics - the new tenancies index, quarter 3 2007 to present, is a long-standing index of new tenancies, and the existing tenancies index, quarter 2 2022 to present, is for tenancies of at least one year in duration and which is annual registration. With the recent introduction of existing tenancy information, we now have the ability to monitor existing tenancy rent price developments and this is a major step forward for the rent index. However, while it is not the measure of compliance with rent pressure zones requirements, it significantly strengthens our ability to understand the private rental sector overall, which has gone through considerable changes in recent years. As can be seen in the Government's countermotion, the RTB-ESRI rent index figures to those of the quarterly report prepared by Daft. It is essential to note that daft.ie is a single platform measuring rent asking prices, which tend to be higher than the actual rents paid as recorded by the rent index.

An estimated €13.5 billion, comprised of a mix of both public and private financing, is required each year to meet Housing for All's annual average supply target of 33,000 homes. Institutional investment is a critical piece of this overall investment. It is a well established and normal facet of housing investment in our European neighbours and beyond. Notwithstanding the critical role played by institutional investment in financing increased supply of housing, the Government introduced measures in May 2021 to disincentivise and prohibit the inappropriate bulk purchasing of certain homes. These measures introduced a higher 10% stamp duty levy on the cumulative purchase of ten or more residential properties, excluding apartments, in a 12-month period. According to Revenue and CSO data, the higher stamp duty rate has applied to less than 1% of residential property. transactions in the period from May 2021 to October 2023 and has applied to less than 2% of total new dwellings completed from when the higher rate applied.

I turn to rent freeze and tax relief. A three-year rent freeze would have had a significant impact in deterring medium- and longer-term supply of rental accommodation with knock-on negative impacts on rent levels. It would have acted as a disincentive to landlords considering entering the rental market and is a spur for existing landlords to leave. We need a supply of homes of all types and tenures in every place, and a wide-reaching plan to reform practically every aspect of our housing system. Housing for All is that plan and despite the challenges we face, we can see that plan is bearing fruit. Budget 2024 increased the rent tax credit from €500 to €750 per renter. A potential €1,500 is available to a couple renting their home.The Government agreed on 7 March that the "winter emergency period" under the Residential Tenancies (Deferment of Termination Dates of Certain Tenancies) Act 2022 would come to an end on 31 March 2023, with deferred tenancy terminations taking effect over a staggered period from 1 April to 18 June 2023, as planned and legislated for under the Act. The Government considered that extending the emergency period would be detrimental to medium- and long-term supply of private rental accommodation. That position has not changed. The Department and local authorities are instead focusing on implementing the additional measures the Minister announced last March to increase the supply of social homes.

On 24 October, the Government approved the general scheme of the Residential Tenancies (Right to Purchase) Bill for priority drafting and publication. Detailed and complex work has been ongoing in conjunction with the Office of the Attorney General, including consideration of the recommendations from the Joint Committee on Housing, Local Government and Heritage's pre-legislative scrutiny of the general scheme.

The Government is at all times conscious in bringing forward such legislation of the need to avoid unintended consequences insofar as possible. For example, it is not intended to unnecessarily impede or complicate the sales process for rental accommodation, nor to cause delays to the conveyancing process. The Government is also required to ensure, when formulating legislation, that it can withstand legal challenge.

The Government relies on the private rental sector to provide much-needed housing generally, as well as housing through which social housing needs can be met. Any actions that directly or inadvertently undermine the economic viability of rental accommodation provision could negatively impact the existing and future supply of such accommodation and the wider economy, and could damage the market's capacity and attractiveness for landlords and tenants.

Progress is being made under Housing for All. The number of new dwelling completions, commencements, promotions, home purchases, first-time buyers and mortgage drawdowns are all increasing.

In accordance with the programme for Government and Housing for All commitments, the Government has provided for tenancies of unlimited duration through the Residential Tenancies (Amendment) Act 2021. All new tenancies created on or after 11 June 2022 will become tenancies of unlimited duration once the tenancy has lasted more than six months and no notice of termination has been validly served on the tenant. The aim of this is to enhance security of tenure for tenants and simplify the operation of the Residential Tenancies Acts 2004-2022.

The programme for Government recognises the important role the private rental sector plays and will continue to play. The Government will address challenges in the sector, including supply, standards, security and affordability for renters. There has been clear progress under Housing for All and we have an extremely solid foundation on which to build. The reforms we have introduced have taken time because they are comprehensive and far-reaching. Housing delivery envisaged under Housing for All is focused through short-, medium- and long-term actions. Government is working to deliver on its comprehensive and detailed plan of action. Delivering for people is our goal on the housing front and all fronts. We will continue to listen to feedback and seek ways to improve the review of the private rental sector and give voice to all interested parties. In delivering housing, affordability and quality will remain core to everything we do.

Improving supply standards, affordability and security for renters is a priority for me and the Government. We are making significant changes in recognition of the fact tenants face persistent pressures in the rental and housing markets. Our approach to change must continue to be carefully balanced. We must recognise we need landlords to provide a steady supply of rented accommodation and for the sector to be on a sound footing for tenants and landlords within the overall housing system.