Written answers

Thursday, 1 March 2012

Department of Social Protection

Private Rented Accommodation

5:00 pm

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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Question 13: To ask the Minister for Social Protection her views on the fact that the new maximum rent limits which came into force on 1 January 2012 will force many families to move in view of the fact that many landlords will refuse to reduce their rents causing unnecessary hardship, particularly for families with young children; and if she will make a statement on the matter. [11704/12]

Photo of Séamus HealySéamus Healy (Tipperary South, Workers and Unemployed Action Group)
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Question 18: To ask the Minister for Social Protection if the new maximum rent allowance limits have resulted in a reduction of rents across the country; if she considered alternative measures to achieve the same aim; if her attention has been drawn to the practice of landlords putting one rent on the form for the rent allowance and demanding another rent from the tenant; and if she will make a statement on the matter. [11705/12]

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)
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Question 23: To ask the Minister for Social Protection the percentage of landlords that have not agreed to the rent reductions; if they are clustered in particular areas; if she identifies clusters in which the rent assistance is out of line with the market will she amend the levels of rent assistance available; the number of recipients of rent assistance that have since the last reduction been issued with letters to vacate and relocate; and if she will make a statement on the matter. [11693/12]

Photo of Thomas PringleThomas Pringle (Donegal South West, Independent)
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Question 32: To ask the Minister for Social Protection if she has measured the success of the new maximum rent allowance limits in reducing rent to landlords; if she considered alternative measures to achieve the same aim such as rent controls; and if she will make a statement on the matter. [11861/12]

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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Question 55: To ask the Minister for Social Protection her views that the new rules regarding rent supplement will force many young families to move location in order to avail of cheaper housing which will inevitably lead to social problems, particularly for the children involved; and if she will make a statement on the matter. [11703/12]

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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Question 56: To ask the Minister for Social Protection if she will detail the methodology behind the rates of rent allowance cuts in budget 2012; and her views that this will force some persons in vulnerable situations to move to cheaper areas, which may mean a move away from the schools their children are in and from family support. [11706/12]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 58: To ask the Minister for Social Protection the percentage of persons who have been asked to review rent allowance rates with their landlord under the new maximum limits that have been successful in doing so; the percentage that have had to seek alternative accommodation and of those persons if she has followed up on their application to ensure they have not become homeless; and if she will make a statement on the matter. [11860/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 13, 18, 23, 32, 55, 56 and 58 together.

Rent supplement provides short-term support to eligible people living in private rented accommodation, whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. Since 2005, rent supplement expenditure has increased from €369 million to a provisional outturn of €503 million in 2011. The number of persons claiming the allowance increased from almost 60,200 persons in 2005 to over 96,800 at end 2011, a 61% increase.

The new maximum rent limits were set after an analysis of the most up to date market data available; this analysis is published on the Department's website. The emphasis of the rent limit review was to ensure that maximum value for money for tenants and the taxpayer was achieved whilst at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation.

As the Department currently funds approximately 40% of the private rented sector it is essential that State support for rents are kept under review, reflect current market conditions and do not distort the market in a way that could increase rent prices for others such as low paid workers and students.

Data is not available on the number of rent supplement cases that have been reviewed since the introduction of the new limits or of the outcome of these reviews. However, all new rent supplement applications are subject to these limits and as existing claims come up for review, (most claims are reviewed every six months), or when an existing lease expires, they will be reassessed using the new limits.

The new rent limits are only in place for two months so it is too early to say what impact they have had on the rental property market.

Where a claim is under review and the rent is above the new maximum limit the customer is being asked to contact the landlord to renegotiate the rent. Where a landlord does not agree to reduce the rent to the new rates departmental officials will discuss the options open to the tenant up to and including seeking alternative accommodation.

Departmental guidance to the officers administering rent supplement states that where negotiation with the landlord fails then rent supplement may continue to be paid for a period of up to thirteen weeks at the higher rate. However, once the lease has expired the tenant will be expected to find suitable accommodation at below the new limits in force. Department officials dealing with rent supplement tenants will continue to ensure that their accommodation needs are met; there will no incidence of homelessness due to these changes.

Top up payments could occur where the application for rent supplement to the Department presents a lower rent than that actually being paid to the landlord. Any instance of false declarations should be reported to the relevant Department official dealing with the rent supplement case.

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