Written answers

Thursday, 30 April 2015

Department of Environment, Community and Local Government

Private Rented Accommodation Costs and Controls

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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195. To ask the Minister for Environment, Community and Local Government his views on a matter (details supplied) regarding incomes and increasing rents; and if he will make a statement on the matter. [17183/15]

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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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 2020Strategywill 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, the Social Housing Strategy 2020published in November 2014 sets 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. 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.

The rent supplement scheme provides support to just over 70,000 people living in private rented accommodation. The operation of the scheme is a matter for the Minister for Social Protection. The Department of Social Protection published a review of the maximum rent limits under the scheme on 27 March 2015 which is available through that Department’s website. Community Welfare officers have been reminded of their statutory discretionary power to award a supplement for rental purposes and in June 2014, the Department of Social Protection agreed and implemented a tenancy sustainment protocol with the Dublin local authorities and voluntary organisations. The protocol was extended to Cork City earlier this year.

I recognise that current rent levels are causing hardship and leading to difficulties, particularly for lower-income households. The time-lag in terms of ramping up supply to match demand is fuelling a marked increase in rents, especially in Dublin and the major cities. 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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