Finian McGrath (Dublin North Central, Independent)
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572. To ask the Minister for Environment, Community and Local Government his views on correspondence from the Irish Property Owners’ Association in respect of the private rental market, and the crisis situation between the shortage of supply and the current level of rents (details supplied); and if he will make a statement on the matter. [18295/15]

Paudie 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 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 addition, the 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 new social housing units through Pillar 1. The private rental sector however, through Pillar 2 of the strategy, will accommodate up to 75,000 eligible low-income households primarily through the new Housing Assistance Payment (HAP) scheme.

The Private Residential Tenancies Board (PRTB) published two major reports on the private rental sector in 2014, entitled Future of the Private Rented Sector and Rent Stability in the Private Rented Sector. Both reports are available on the PRTB website at and .

The Social Housing Strategy 2020 includes a commitment to developing a national policy on the private rental sector aimed at increasing investment in and supporting the supply of, good quality, secure and affordable accommodation in the sector. The PRTB reports referred to above, together with a forthcoming National Economic and Social Council (NESC) report on Ireland’s rental sector, will be important inputs to the process of considering possible further policy and legislative initiatives.

The Residential Tenancies (Amendment)(No. 2) Bill 2012 is currently before the Oireachtas and will amend the Residential Tenancies Act 2004 to provide, inter alia, for the establishment of a custodial deposit protection scheme. This will provide protection for tenants, including those who find themselves in situations where a receiver has been appointed and the situation regarding the return of their deposit is uncertain. The Bill has passed all stages in the Dáil, together with second stage in the Seanad. It will return to the Seanad for Committee Stage in the coming weeks.

I recognise that the time-lag in terms of ramping up supply to match demand is fuelling a marked increase in rents, especially in Dublin and the other major cities, leading to difficulties, particularly for lower-income households. I am monitoring the rental market closely and am keeping potential policy options under review. 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.