Written answers

Wednesday, 17 September 2014

Department of Environment, Community and Local Government

Private Rented Accommodation Costs and Controls

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
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32. To ask the Minister for Environment, Community and Local Government further to Parliamentary Question No. 381 of 10 June 2014, if the report into the private rented sector to be carried out by the Private Residential Tenancies Board has now been completed; the main findings of the report; his views on introducing some form of regulation to control rent levels in private rented accommodation, particularly in Dublin where there is an acute shortage of private rented housing stock. [34301/14]

Photo of Alan KellyAlan Kelly (Tipperary North, Labour)
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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 published data from the Private Residential Tenancies Board (PRTB) Rent Index shows the extent of rising rents, particularly in Dublin where rents for houses increased by 6.7% annually, while 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 earlier this year the Government published Construction 2020 - A Strategy for a Renewed 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. A Social Housing Strategy, which will be considered by Government shortly, will set out a vision for social housing and identify ways to increase social housing supply over the next 5 years.

Resolution of the housing supply situation is the key element in restoring stability to the market but this takes time. Consequently, the PRTB was asked 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 with policy recommendations.

The report concerned is being finalised and is due to be presented to me very shortly. It is the first of two studies on the future of the private rented sector and focuses on options to address the recent escalation in rents, mainly in the Dublin region.

While the report is not yet to hand, I understand it explores a range of issues in regard to rent stability ranging from an examination of rent regulation regimes to the tax treatment of the private rented sector and the role of rent supplement. It is a major report that will require careful consideration, together with colleagues in Government, before deciding on the best options to address the current difficulties in the market. Our overriding objective is to achieve stability and sustainability in the market for the benefit of tenants, landlords and society as a whole.

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