Terence Flanagan (Dublin North East, Independent)
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143. To ask the Minister for Environment, Community and Local Government his plans regarding rent controls; and if he will make a statement on the matter. [27669/14]

Terence Flanagan (Dublin North East, Independent)
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158. To ask the Minister for Environment, Community and Local Government his plans to introduce a rent cap; and if he will make a statement on the matter. [27801/14]

Jan O'Sullivan (Limerick City, Labour)
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I propose to take Questions Nos. 143 and 158 together.

The private rented sector is an increasingly important element of the housing market, with the proportion of households in the sector almost doubling in the period 2006-2011. I am conscious of the difficulties caused by rising rents and the problem of sourcing suitable accommodation, especially in Dublin and other urban centres. The most recent data from the Private Residential Tenancies Board (PRTB) Rent Index shows the extent of rising rents, particularly in Dublin and the major cities. In Dublin, rents for houses increased by 6. 7 % annually, and for apartments the figure was 10.3%.

The fundamental reason behind the rise in rents is a lack of supply. Increasing both public and private housing supply is a critical issue and just last month the Government published Construction 2020-A Strategy for a Renewed Construction Sector. This publication is a blueprint for a properly functioning and sustainable construction sector. It provides for a strategic approach to the provision of housing based on real and measured demand and addresses the full range of relevant issues including the planning process, financing, access to mortgage finance and the construction workforce. As part of the Construction Strategy, the Government is committed to publishing a social housing strategy by the end of the third quarter 2014 which will set out a vision for social housing and identify ways to increase social housing supply over the next 5 years. Over half a billion euro in funding is being made available through my Department across a range of housing programmes in 2014 and it is expected that over 6,000 units will be provided for social housing this year.

Resolution of the housing supply situation is the key element in restoring stability to the market but I recognise that the provision of additional units of housing takes time. Consequently, I recently asked the PRTB to conduct a study to explore options to address the difficulties being experienced in segments of the private rented sector due to rising rents and to report back to me with policy recommendations before the end of June. My goal is to achieve stability and sustainability in the market for the benefit of tenants, landlords and society as a whole.