Written answers

Tuesday, 20 January 2015

Department of Environment, Community and Local Government

Private Rented Accommodation Costs and Controls

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Independent)
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573. To ask the Minister for Environment, Community and Local Government his plans to introduce rent controls in order to protect tenants from exorbitant increases which in many cases currently are rendering tenants homeless; and if he will make a statement on the matter. [2794/15]

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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The Residential Tenancies Act 2004 regulates the landlord-tenant relationship in the private rented sector and sets out the rights and obligations of landlords and tenants relating to, inter-alia, security of tenure, termination of tenancies, rent and rent reviews. The 2004 Act provides that rents may not be greater than the open market rate and may only be reviewed upward or downward once a year, unless there has been a substantial change in the nature of the accommodation that warrants a review. In the third quarter of 2014, rents were 5.6% higher nationally than in the same quarter of 2013, according to the most recent rent index from the Private Residential Tenancies Board (PRTB). Rents for houses were 4.3% higher while apartment rents were 7.3% higher than in the same quarter of 2013. In Dublin, which is seeing the highest rates of increase nationally, overall rents were higher by 9.5%.

A recent poll for the PRTB found that only 64% of tenants were aware of their rights under the Residential Tenancies Act 2004. Tenants must be given 28 days’ notice of new rent and can make an application for dispute resolution to the PRTB where they feel the rent increase is in excess of the market rent. These provisions have effect notwithstanding any provision to the contrary in a lease or tenancy agreement.

The PRTB is developing a new communications strategy, which will include increasing awareness of existing rights and obligations under the legislation. The first element in the strategy, a ‘do you know’ campaign, commences in the national press this week.

Ultimately, the main cause of rising rents is a lack of supply in the market and the recently published Social Housing Strategy 2020sets out clear, measureable actions and targets to increase the supply of social housing, reform delivery arrangements and meet the housing needs of all households on the housing list. In addition, the implementation of the range of actions under the Government’s Construction 2020Strategy will support increased supply in the wider housing market.

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