Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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214. To ask the Minister for Finance if his attention has been drawn to the fact that the sale by the National Assets Management Agency of occupied apartment complexes to investors, both national and international, is contributing to rent inflation as the profiteering companies seem to immediately inflate the rent on the day of the rent review, as in the case of rental properties (details supplied) in Dublin 12, which was sold recently by NAMA to a foreign investor, who have hiked rents by 23% from €1,100 to €1,600; and his views on the action being taken to address this inflationary trend. [47953/14]

Michael Noonan (Limerick City, Fine Gael)
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In line with the purposes of the NAMA Act and NAMA's objectives, NAMA has committed to repay 80% of its senior debt by end-2016. To meet this objective, NAMA must realise assets including through the sale residential property portfolios. It is entirely incorrect to claim that the sale of assets securing NAMA's loans is contributing to rent inflation in the private residential rental market. Rent levels are determined by the interaction of supply and demand in the market. The owners of residential property, be they NAMA debtors and receivers or private investors, set rents at levels that are in accordance with what the market is willing to pay. I cannot accept the implication of the Deputy's question, namely, that there is an onus on NAMA to subsidise the rents paid by private tenants.

However, we recognise the evidence of a growing and significant under-supply of available housing units demonstrated by rising prices and rent levels in key urban areas, especially in parts of Dublin.

I can assure you that this issue is being taken seriously. The Construction 2020 initiative sets out a focussed programme of action  to deliver a strong, sustainable, well-financed, competitive and innovative approach to construction and housing. This initiative is examining a number of aspects of the Irish property market with the aim of uncovering the source of any current market dysfunction and making recommendations to address these. It will develop an overall strategic approach to housing supply one that is evidence based, and that equips local and national authorities with the tools they need to detect emerging imbalances and to take the steps necessary to correct them.  We intend to ensure that renting is a secure, stable, and viable option for those who choose it.