Seanad debates

Tuesday, 12 June 2018

Commencement Matters

Rental Accommodation Scheme

2:30 pm

Photo of Aidan DavittAidan Davitt (Fianna Fail)
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I thank the Minister of State, Deputy Damien English, for coming into the House to take this matter, despite his busy schedule. He has seen an outline of it and I know that he has prepared a detailed reply.

The matter was brought to my attention by Councillor Pat Fitzgerald who is well known in Arklow and a great champion of the locals. He came across an incident, of which I was not aware, although I deal with many housing issues and applications. It involved a tenant in a house included in the rental accommodation scheme, RAS.The landlord evidently decided to sell the house, so it fell on the council to rehouse the tenants. They had been removed from the housing list and could not qualify for RAS or additional help with their rent. This seems to be an anomaly in the system and I cannot understand why. If someone is on RAS and the house he or she is renting is sold or made otherwise unavailable for whatever reason, which is common nowadays, that tenant cannot return to his or her original place on the housing list or fall back into the HAP net, to which everyone else is entitled, and get assistance with finding other private housing. Instead, the tenant must deal with the council, which must house that person directly. The Minister of State knows more than most, however, that the councils do not have enough houses. In the case in question, the tenants ended up in temporary accommodation because they seemed to fall between two rocks.

I hope that the Minister of State has some enlightening news to give on this matter rather than some statement written by someone in the Department. He has a great understanding of these issues.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I thank the Senator for raising this issue and acknowledge his concerns about the operation of the rental accommodation scheme. I should be able to bring some clarity to the matter, given that it is down to interpretation, and I welcome the opportunity to discuss it in the Seanad. This issue has crossed our desks recently via various people.

RAS was first introduced in 2004 and has met the housing needs of tens of thousands of households in the private rental sector by providing them with more security than rent supplement and the ability to increase their household incomes without the risk of losing their housing support. Close to 19,000 families are living in rental accommodation with the support of this scheme. RAS continues to be an effective mechanism for meeting housing need and an additional 1,800 households are targeted for transfer from rent supplement to RAS-supported tenancies between 2018 and 2021.

With the increase in rent supplement recipients transferring to HAP, the number of new RAS tenancies created annually will reduce. RAS operates as a three-way arrangement between a landlord, a tenant and a local authority. These arrangements can be for a variety of periods. In each case, the tenant-landlord relationship is protected by the obligations of both parties set out in the Residential Tenancies Act. The agreements are often for ten years or more. RAS arrangements may come to an end either where a fixed-term contract is ending or the tenancy is being terminated by the landlord in accordance with the provisions of the Residential Tenancies Act. The majority of contracts do not end unless there is a built-in arrangement with the local authority. The normal contract is for a fixed term.

In every circumstance, there is a period of several months in advance of the arrangement ending that provides local authorities with the opportunity to negotiate a renewal of the contract with the property owner or other options to secure the property for social housing use, including a different lease arrangement or purchase for the social housing stock, given that it has already been in use in that form for several years. We have made this clear to local authorities and encourage them to consider these options.

When a RAS tenancy comes to an end with no prospect of renewing or otherwise securing the use of the property for social housing, the local authority has a responsibility to find alternative accommodation for that tenant. In circumstances where the local authority is unable to find alternative accommodation from its own stock or from new properties that become available as part of its development pipeline during the period prior to the arrangement coming to an end, HAP may be considered as an alternative housing solution for the household, subject to the agreement of the tenant. As such, HAP is an option, and we will clear up the matter of its interpretation where any doubt exists.

In this context, it is important that there be a shared understanding of one of the specific differences between HAP and other forms of social housing support. By definition and design, HAP is a flexible, tenant-led form of housing support, allowing tenants to choose the accommodation they wish to live in, subject to certain criteria. When a HAP tenancy comes to an end, there is no obligation on the local authority to source alternative accommodation for the tenant. As the housing authority, however, I naturally expect local authorities to support those receiving housing assistance in securing alternative accommodation. My Department is preparing detailed guidance to assist local authorities in these circumstances and ensure there is clarity on how the practicalities of the transition from RAS or another form of social housing to HAP can be managed. As housing authorities, local authorities require a variety of flexible options to meet the needs of those on waiting lists which work in the local authority property markets. The RAS continues to be an important solution in that regard but the national roll-out of HAP now complete, the number of new RAS tenancies commencing will decline, although there will be up to 2,000 over the next three to four years. It remains the case that local authorities should be doing everything in their power to ensure that households currently accommodated in RAS arrangements that may shortly be coming to an end are provided with secure accommodation to meet their long-term housing need. HAP should be considered as one of those solutions. Let me be clear about that. It is black and white and we will issue guidelines to make it even clearer.

Photo of Aidan DavittAidan Davitt (Fianna Fail)
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I am delighted the Minister of State, Deputy English, is here because he has a good grasp of the housing issue. It is certainly the answer I wanted to hear. It is a practical answer. It is a change in policy, or a change from what was in some letters we received from the Department, of which I am sure the Minister of State is aware. He is doing work on this behind the scenes. I am sure it would not have changed otherwise. I appreciate the change in stance from what was in the documentation we received in the past couple of months. I appreciate the Minister of State's good work and common sense on the issue.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I thank Senator Davitt for raising this issue. It is important we bring clarity to the issue and I am happy to do that.