Jerry Buttimer (Cork South Central, Fine Gael)
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597. To ask the Minister for Environment, Community and Local Government to outline his plans to incentivise the increased supply of residential property available on the rental market; and if he will make a statement on the matter. [25719/15]

Terence Flanagan (Dublin North East, Independent)
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625. To ask the Minister for Environment, Community and Local Government if he will support a matter (details supplied) regarding landlords; and if he will make a statement on the matter. [26030/15]

Paudie Coffey (Waterford, Fine Gael)
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I propose to take Questions Nos. 597 and 625 together.

The private rental sector has grown to become a major component of the housing market, meeting the accommodation needs of approximately one-fifth of all households. Close to one-third of households living in the sector are in receipt of housing support in the form of rent supplement or other State support and so the sector is of key importance for the provision of social housing also. This is recognised in the Social Housing Strategy 2020 goal to meet the needs of 75,000 households in the sector, primarily through the Housing Assistance Payment (HAP) scheme.

With regard to the housing market, Construction 2020: A Strategy for A Renewed Construction Sector sets out the Government’s plans to address a number of issues being faced in the property and construction market and to address blockages in the system in order to get the market moving and increase supply. This includes facilitating the sustainable and professional development of the private rented sector.

Historically, the private rented sector in Ireland has been characterised by small-scale landlords. Attracting large-scale investment in professionally managed residential property, for example using Real Estate Investment Trusts (REITs) and other options for long-term investment, can have an important role to play in helping to deliver the professional high-standard sector that tenants deserve.

The acquisition and management of properties by professional REITs is part of a more sustainable, long-term property rental market for both investors and tenants. While commercial property investment has been a key focus for some of the REITs launched to date in Ireland, residential property also forms part of the sector’s interest and exposure. For example, since its launch in April 2014, Irish Residential Properties REIT, the first Irish REIT with a primarily residential property investment focus, has built up a portfolio of high quality Dublin residential properties. The sector is expected to continue to develop over time and in so doing to increase the supply of professionally managed, good quality, secure and affordable rented accommodation.

Following on from the commitment in Construction 2020 to develop a national policy towards professionalising the private rental sector, the Social Housing Strategy includes an action (Action 35) to continue work on the development of this policy with the aim of increasing investment in and supporting the supply of, good quality, secure and affordable rental accommodation. The timeline for this is the fourth quarter of 2015.

The governance structure established to ensure that the actions in the Social Housing Strategy are overseen and delivered includes five workstreams or working groups, each with a specific focus. The development of the policy on the private rented sector is taking place in the context of Workstream 5 which includes officials from my Department and the Departments of Finance and Public Expenditure and Reform as well as representatives of the Private Residential Tenancies Board (PRTB), the National Economic and Social Council (NESC), the Housing Agency and the local authority sector.

In the period since the publication of Construction 2020, a number of reports on the future of the private rented sector have been published. Notably these include two reports by DKM Economic Consultants commissioned by the PRTB and a series of reports from NESC including Social Housing at the Crossroads: Possibilities for Investment, Provision and Cost Rental and most recently, Ireland’s Private Rental Sector: Pathways to Secure Occupancy and Affordable Supply.

The latter report calls for more secure occupancy for tenants, including greater rent certainty as well as measures to increase the supply of rental housing. The recommendations put forward in these reports will be considered carefully in the context of framing a national policy on the private rented sector. 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.