Written answers

Wednesday, 4 March 2015

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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35. To ask the Minister for Environment, Community and Local Government if he will report to Dáil Éireann on the progress of his meetings with the Irish Property Owners' Association; his plans to address rising rental market prices; and the impact of these rents on families in receipt of rent supplement and awaiting social housing. [9053/15]

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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My Department is consulting with the local government sector, social housing providers and landlord and tenant representatives in the course of drafting legislation to give effect to measures proposed in relation to tenants and unpaid water charges. Further details on the modalities involved will be available on publication of the draft legislation following Government approval and the completion of the necessary consultations with relevant representative organisations. The meeting with the Irish Property Owners Association was part of those consultations. The association also raised other issues of interest to it including the taxation treatment of landlords and the Housing (Standards for Rented Houses) Regulations.

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% although the rate of annual increase was down slightly. Fundamentally, the main cause of rising rents is a lack of supply in the market. The implementation of the range of actions under the Government’s Construction 2020 Strategy will support increased housing supply. New house completions in 2014 amounted to 11,016 units nationally, up 33% on the 2013 figure. In the third quarter of 2014, planning permissions were granted for 2,144 dwellings, compared with 1,409 units for the same period in 2013 - an increase of 52%.

In addition, Social Housing Strategy 2020 published in November 2014 sets out clear, measurable 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. The total targeted provision under the Social Housing Strategy of 110,000 social housing units includes the delivery of 35,000 units and a further 75,000 solutions through the HAP and RAS schemes. In 2015 alone we will provide over 7,000 new social housing units and a further 8,400 units will be secured under the HAP scheme.

The rent supplement scheme, administered by the Department of Social Protection, provides support to approximately 70,000 people living in private rented accommodation. Community Welfare officers have been reminded of their statutory discretionary power to award a supplement for rental purposes, for example, when dealing with applicants who are at risk of losing their tenancy.

In addition, the Department of Social Protection has agreed and implemented a tenancy sustainment protocol with the Dublin local authorities and voluntary organisations. The protocol applies where families in receipt of rent supplement are in danger of losing their tenancy. Since the launch of this protocol in mid-June 2014, over 370 families in Dublin have had their rent supplement payments increased. The protocol has now also been extended to Cork City.

The Government is monitoring the rental market closely and is considering policy options in relation to achieving greater rent certainty. My overriding objective in relation to rents is to achieve stability and sustainability in the market for the benefit of tenants, landlords and society as a whole.

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