Terence Flanagan (Dublin North East, Independent)
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548. To ask the Minister for Environment, Community and Local Government his plans to introduce a cap on rents in the private rental sector; and if he will make a statement on the matter. [4052/14]

Jan O'Sullivan (Limerick City, Labour)
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The most recent rent index, for the third quarter of 2013 compiled by the ESRI for the Private Residential Tenancies Board (PRTB), presented a mixed picture in respect of changes in rents nationally. Rents in the Dublin region had increased by 2.5% over the previous quarter while rents in the ‘outside Dublin’ category showed a 1.4% increase.

The figures showed a year-on-year decrease of 0.2% in the ‘outside Dublin’ category but an increase of 6.4% in rents in the Dublin region over the same period. The most recent figures from , also in respect of quarter three 2013, showed a year-on-year increase of 7.6% in Dublin with increases of 3% and 4% in Cork and Galway respectively. Coupled with this , there is evidence emerging of a growing pressure on rents in the lower segment of the market with a Threshold study indicating that 50% of people in receipt of rent supplement are making ‘top-up’ payments to landlords.

With ESRI data showing that the consumer price index grew by only 0.5% in 2013 , and is forecast to grow by 0.8% in 2014, there is a very real affordability issue emerging in parts of the private rented sector.

Approximately 1 in 5 households in the country are now renting their accommodation in the private sector, the biggest share of the housing market since the 1950s. In recent years improvements have been made in the sector in relation , for example, to security of tenure and resolution of disputes. T he Government has also recently approved the drafting of amendments to the Residential Tenancies (Amendment)(No. 2) Bill to establish a deposit protection scheme.

I want to build on these improvements to encourage and promote a stable rental market that is sustainable over the long term. M y Department is exploring the possibilities for commissioning relevant policy research in this area, including in regard to the potential role of rent controls.