Tommy Broughan (Dublin North East, Labour)
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To ask the Minister for Social Protection if she will consider legislation to impose rent control on residential properties in view of the fact that using limits on rent supplement is a blunt mechanism and impacts harshly on some families in need of housing; and if he will make a statement on the matter. [41940/12]

Joan Burton (Dublin West, Labour)
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The State plays a major role in the private rental market through the rent supplement scheme. As the Department currently funds approximately 30% of the private rented sector it is essential that State support for rents are kept under review and reflect current market conditions. There are approximately 90,000 persons in receipt of rent supplement for which the Government has provided €436 million in 2012.

Revised maximum rent limits came into force on 1 January 2012 and are in place until June 2013. These limits were set after an analysis of the most up to date market data available. 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.

All new rent supplement applications are subject to the revised limits and as existing claims came up for review or when an existing lease expires, are assessed using the new limits. Approximately 37,300 rent supplement claims have been awarded in 2012, representing over 41% of total claims in payment, indicating that accommodation can be secured within the existing rent limits. 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.

It is essential that rents are allowed to stabilise from a natural balance of supply and demand, rather than as a result of a rent control funded by the taxpayer. The Department will continue to monitor rent levels throughout the country but at this stage I have no plans to alter the current approach, in terms of introducing legislation to impose rent controls on residential properties.