Written answers

Tuesday, 23 September 2014

Department of Environment, Community and Local Government

Private Rented Accommodation Costs and Controls

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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478. To ask the Minister for Environment, Community and Local Government the actions he has taken following his comments that he is examining a freeze on residential rent prices; and if he will make a statement on the matter. [35892/14]

Photo of Alan KellyAlan Kelly (Tipperary North, Labour)
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The private rented sector is an 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 8.5 % annually, while for apartments the figure was 12.1%.

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 includes a commitment to a social housing strategy which is being finalised and will be considered by Government in the coming weeks.

In addition, 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 to me with policy recommendations. This report is being finalised and is due to be presented to me in the coming days. 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 i t 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 significant 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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