Paul Murphy (Dublin South West, Socialist Party)
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195. To ask the Minister for Finance in view of a media report (details supplied), if he will provide the findings of research carried out by his Department on the impact on the rental market of changes to the Central Bank of Ireland mortgage lending rules; if rent controls have been considered, or research on the impact of rent controls undertaken, by his Department; his views on rent controls and the affordability of rent; and if he will make a statement on the matter. [8879/15]

Michael Noonan (Limerick City, Fine Gael)
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Primary responsibility for policy on the private rental market, including the regulation of that market, is a matter from my colleague the Minister for the Environment, Community and Local Government and his Department is closely monitoring the operation of that market. It is a function of the Private Residential Tenancies Board (PRTB) to collect and publish information relating to prevailing rent levels and the latest data from the PRTB indicates that, in the third quarter of 2014, rents nationally were 5.6% higher than the same period in 2013.

As the Deputy will be aware, in October 2014 the Central Bank launched a public consultation document on proposed macro prudential measures in respect of residential mortgage lending. The primary objective of this initiative is to increase the resilience of the banking and household sectors to the credit and property markets, but the Central Bank was also conscious that the proposals could have some unintended consequences. One of the possible such impacts raised by my Department, and by others, in their contribution to this consultation process, was the possible impact of the Central Banks proposals on the rental market. While no specific research was conducted on the issue within the time available for the consultation, my Department was nevertheless aware of the overall increase in the level of rents in recent years and raised this as an issue for consideration. This was a matter that the Central Bank was also cognisant of, and in the macro prudential measures which it finally put in place allowed for a higher loan to value cap for first time buyers which, it indicated, should reduce the impact the macro prudential measures would have on the rental market.