Written answers

Tuesday, 16 June 2009

Department of Social and Family Affairs

Social Welfare Code

8:00 pm

Photo of Chris AndrewsChris Andrews (Dublin South East, Fianna Fail)
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Question 196: To ask the Minister for Social and Family Affairs the action she will take to protect vulnerable tenants on rent supplement who are being taken advantage of by their landlords by not granting them a reduction in rent commensurate with the reduced rent supplement and allowance since 1 June 2009. [23518/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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There are currently over 88,200 people in receipt of rent supplement, an increase of 48% since the end of December 2007. The recent Supplementary Budget provided that the weekly minimum contribution payable towards rent be increased from €18 to €24 a week, with effect from 1 June 2009. The Supplementary Budget also provided that payments currently being made to existing rent supplement tenants be reduced by 8% from the same date. Other changes in the Supplementary Budget provided for new maximum rent limits to take effect from 1 June 2009, to reflect the general reductions in private sector rent levels.

The most recent data published by the CSO, shows that rents in the private sector have fallen by almost 11% since November 2008 and by almost 20% in the past year. It is essential therefore that state support for tenants who form a substantial section of the rental market, does not give rise to inflated rental prices.

Existing recipients of rent supplement were advised by letter in advance of the change being made to their rent payment from 1 June 2009. Each letter advised of the reductions being applied to that individual's rent supplement payments it also advised that if the recipient wanted to talk to their landlord to seek a reduction in rent, the Department's letter could be shown to a landlord as evidence of the provisions in their rent supplement payment. Landlords were advised through advertising in national and provincial newspapers of the general reduction in rent supplement payments.

Given prevailing rental market trends and availability of rental properties, landlords were asked in the advertising to respond positively to tenants who present the Department's letter seeking a reduction in rent. A number of organisations representing landlords and tenants were contacted and advised of the changes to the rent supplement. Each letter advised of the reductions being applied to that individual's rent supplement payments it also advised that if the recipient wanted to talk to their landlord to seek a reduction in rent, the Department's letter could be shown to a landlord as evidence of the provisions in their rent supplement payment. Landlords were advised through advertising in national and provincial newspapers of the general reduction in rent supplement payments. Given prevailing rental market trends and availability of rental properties, landlords were asked in the advertising to respond positively to tenants who present the Department's letter seeking a reduction in rent. A number of organisations representing landlords and tenants were contacted and advised of the changes to the rent supplement scheme.

Under the Residential Tenancies Act 2004, once a tenancy is at least a year old and where the rent has not been reviewed in the previous twelve months, the tenant is entitled to ask a landlord to review the rent in payment where the tenant feels that the rent exceeds the market rate for the property. While tenants may be contractually obliged to pay the rent agreed to in their lease, it is expected that landlords will decrease the rent in recognition of the fact that rents have fallen generally and that there are now a large number of vacant rental properties nationally. In this climate, it is expected that people should be able to get accommodation at the appropriate rental level if a landlord is unwilling to reduce the rent in any particular case. Disputes between landlords and tenants about any aspect of rent or the return of a deposit may be referred to the Private Residential Tenancies Board.

Community Welfare Officers have discretion to provide assistance where exceptional circumstances exist in any individual case. Officers have been advised that support, appropriate to the circumstances of the particular case, may be provided to rent supplement tenants for up to two months, while alternative accommodation is being sourced within the existing rent limits.

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