Seanad debates

Thursday, 18 October 2018

10:30 am

Photo of Kevin HumphreysKevin Humphreys (Labour)
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I welcome the pupils from St. Vincent's school in Marino, who are in the Visitors Gallery. We are talking about an issue that affects every family in the city, if not the country, the housing crisis.I have addressed the Minister of State, Deputy English, on this matter on several occasions. When the Tánaiste and Minister for Foreign Affairs and Trade, Deputy Coveney, had responsibility for housing, he formed a cross-departmental group to examine short-term letting and he promised us action and policy. In November 2017, the current Minister, Deputy Eoghan Murphy, said in this House that short-term letting and the rental market need policy development, ignoring the cross-departmental committee. In May 2018, he said that policy was being finalised in the Department. In June 2018, he promised that regulations would be published shortly. In August 2018, he said that he would bring plans to regulate short-term letting to Government in September. On 28 September 2018, he promised to publish proposals "next week". Just as tomorrow never comes, there is still no regulation in this area .

According to the figures provided by the Minister, Deputy Eoghan Murphy, regulation in this area would generate 1,000 additional units for rent. We are continually promised that action will be taken tomorrow. Why have we not had action? In Dublin 2, in one apartment block in Christchurch, there are only seven apartments for long-term rent to people working in the city who want to pay their way. I can give the Minister of State, Deputy English, the details in this regard. While researching the Airbnb website, I came across 60 units being let by seven hosts, all of them short-term lets, ranging from €2,100 per month for a one bedroom apartment to €4,300 per month. I could find no units with planning permission for change of use. We are in the middle of a housing crisis. The Minister of State has been in this House several times on this issue and he promised action "tomorrow" but as of yet we have seen no action. We still have a crisis. I am sure the Minister of State will respond to the effect that we need to address the supply issue. I have been raising this issue for two years and while there have been many promises of action tomorrow, there has been no action. This is not good enough. What I want to hear from the Minister of State is that the regulations are to be published immediately.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I thank the Senator for raising this important matter. I have been in the House to address the matter, which I know is dear to his heart, on at least five occasions to date. He is correct that short-term letting affects supply. The Minister, Deputy Eoghan Murphy, is focused on addressing the issue as quickly as possible.

I welcome the opportunity to outline the progress the Government has made to date regarding short-term lettings and to outline the plans to bring forward further legislation in this area. Under action 18 of the strategy for the rental sector, my Department established a working group comprising representatives of all Departments and agencies with a policy interest in short-term lettings to develop guidance on planning applications and changes of use relating to short-term lettings and to examine the need for new regulatory arrangements. The proposals considered by the working group, which met on six occasions, were aimed at facilitating short-term letting of accommodation within permanent residences, known as home-sharing, while seeking to protect the existing stock of residential property in areas of high demand, safeguarding neighbourhood amenity and consumer protection and generating revenue to address any negative externalities of short-term letting. The working group completed guidance for local authorities on planning applications relating to short-term lettings and my Department issued a circular on the matter this time last year. The group has since been focused on developing proposals for an appropriate comprehensive regulatory approach for short-term tourism-related lettings.

Having considered the group’s report, as well as the recommendations of the Oireachtas committee’s report on short-term lettings, the Minister and I are currently engaging with relevant Ministers on the appropriate next steps in taking the proposed regulatory regime forward. Among the options under consideration is the development of a new licensing regime for short-term letting platforms and homeowners who rent out rooms or entire properties to tourists to facilitate a more managed approach to short-term tourist lettings, and thus protect the existing stock of residential property, in particular, long-term rental accommodation, in areas of high demand, which, again, was rightly referred to by the Senator. He also gave some good examples of areas where this provision is being abused.

Recognising that the introduction of such a regulatory regime will take time, the Minister and I are also considering what other measures might, in the interim, support the recommendations and objectives set down in the working group’s report and the Oireachtas committee’s report. I understand that the Minister intends to set out his proposed actions, including specific reforms to relevant legislation, in the near future to address the issues raised in these reports. I am sure Senators will understand that I am not in a position to elaborate further at this time. However, once these proposals are announced, I expect there will be opportunities for both Houses to consider and discuss them in advance of their coming into effect. I can give the Senator a commitment that the Minister and I will be available to come to the House for that debate.

In regard to the timeline issue, the Minister has on a number of occasions tried to prioritise the regulations but it is a complicated legal process. When he appeared before the committee towards the end of September last, he said that the regulations would be published in a week's time. It was hoped to have this done before the budget but owing to a legal issue, publication was delayed. The regulations are almost complete and the Minister hopes to be in a position to announce the changes in the next week or two. It is hoped he will be in a position to announce them this week but it may be the next week or two. It will not be done tomorrow, but it will be done soon. I am confident in that I will be back in the House soon to debate the changes. It was genuinely the Minister's desire to do this prior to budget week but the events of the budget took over. Hopefully, the Minister or I will be in the Seanad next week to discuss the new arrangements.

Photo of Kevin HumphreysKevin Humphreys (Labour)
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I thank the Minister of State for his reply. We have moved now from "tomorrow" to "next week". On 28 September, the Minister, Deputy Eoghan Murphy, told Ms Marie O'Halloran that he would publish proposals the following week. In the interim, the situation has worsened. In one apartment block off Mount Street in Dublin 2, more than 50% of the apartments are available for short-term letting. Recently, one of those apartments was used a pop-up brothel. Short-term letting is leading to security issues for residents throughout Dublin. Short-term letting affects not only the housing crisis but people who bought homes, who owing to the constant re-let of apartments and the passing on of apartment codes etc, do not feel secure in their homes. This is not good enough. The cross-departmental and committee recommendations were not published, which is unacceptable. This issue has been raised on an almost weekly basis over the past two years.

Photo of Catherine NooneCatherine Noone (Fine Gael)
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For that reason, the Minister of State is familiar with it and he has said that the proposals will be published in the next two weeks.

Photo of Kevin HumphreysKevin Humphreys (Labour)
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Sorry, Acting Chairman-----

Photo of Catherine NooneCatherine Noone (Fine Gael)
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The Senator's point is well made.

Photo of Kevin HumphreysKevin Humphreys (Labour)
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-----that has been the constant statement since 14 November 2017. It never happens. The Minister of State mentioned that a legal issue has arisen. I do not understand why the Department did not foresee that issue. I have published legislation in this area, which the Minister of State, Deputy English, said is flawed. I am open to amendments being made to that Bill to progress it. The Government has been given many opportunities to deal with this issue but it has failed to do so and that is not acceptable. I regret that the Minister of State, present today because this matter does not come within his remit and it is being passed between the Departments of Transport, Tourism and Sport and Housing, Planning and Local Government. I am rightly angered. There are people contacting me and my office on a daily basis because they are unable to access housing in this city owing to short-term letting.

Photo of Catherine NooneCatherine Noone (Fine Gael)
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The Senator's point is well made. In fairness, he has raised the issue many times. We have to take the Minister of State at his word.

Photo of Kevin HumphreysKevin Humphreys (Labour)
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As I have outlined a number of times, action has been promised tomorrow, next week and next months.

Photo of Catherine NooneCatherine Noone (Fine Gael)
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The Senator has made his case. I ask the Minister of State to conclude.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I discussed this issue yesterday with the Minister, Deputy Eoghan Murphy. He is aware of the issue raised by the Senator and he understands the need for urgent address of it. In fairness, the Minister, Deputy Eoghan Murphy, has never said that he will do it "tomorrow". Rather, that is Senator Humphreys's interpretation of what the Minister said. In September, he said that he hoped to do it the next week. As I said, there is a delay owing to a legal issue arising and there was also a delay owing to the budget. The aim is to do next week or the week after at the latest. I can give the Senator a commitment that the process will be completed in the next week or so. As I said, the Minister never used the word "tomorrow" and I am not saying "tomorrow". It will happen next week.We want this done as it is a priority for the Government. We want to give people the option to be able to rent a home. For many that is not an option, meaning it is important we increase supply.

The Senator is correct that in certain cases it is not suitable that people have bought houses under certain conditions and discover there is an issue with adjoining properties or their apartment block. The Minister, Deputy Eoghan Murphy, will be dealing with this in the next week.

Sitting suspended at 11.02 a.m. and resumed at 11.30 a.m.