Ruth Coppinger (Dublin West, Socialist Party)
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529. To ask the Minister for Environment, Community and Local Government further to Parliamentary Question No. 26 of 24 June 2015 if he will announce his plans on rent before the summer recess; his plans for rent certainty in greater detail; when he intends to announce his plans; and if he will make a statement on the matter. [27359/15]

Paudie Coffey (Waterford, Fine Gael)
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The most recent data from the Private Residential Tenancies Board (PRTB) for Q1 2015 shows that on an annual basis, nationally, rents were 6.9% higher than in Q1 2014. Rents for houses were 6.5% higher, while apartment rents were 7.8% higher than in the same quarter of 2014.

These annual rates of increase were driven mainly by the Dublin market. Overall, in the 12 months to the end of Q1 2015, rents were higher by 9.6% in Dublin (with house rents up by 9% and apartment rents higher by 10.8%). Annual growth in rents for the market outside Dublin was more subdued. In the 12 months to the end of Q1 2015, rents were higher by 5.3% (with house rents up by 5.7% and apartment rents higher by 5.2%).

A shortage of supply is at the heart of rising rents and the Government is addressing this on a number of fronts. Construction 2020: A Strategy for a Renewed Construction Sector, published last year, is aimed at addressing issues in the property and construction sectors and ensuring that any bottlenecks that might impede the sector in meeting residential and non-residential demand are addressed. Construction 2020 also commits to identifying and implementing further improvements to the planning system to facilitate appropriate development.

Addressing the supply shortfall in housing will take time but in the period since the publication of Construction 2020 some welcome signs of recovery in the sector have become evident. Particularly notable in this regard is the increase in the number of house completions in 2014 to 11,016 units nationally – an increase of 33% on the 2013 figure. The latest figures for new house completions show that 4,566 units were completed to the end of May 2015, up almost 16% on the corresponding figure for 2014.

Social housing is a key priority for the Government, evidenced by the additional €2.2 billion in funding announced for social housing in Budget 2015 and the publication of the Social Housing Strategy 2020 in November 2014. The total targeted provision under the Social Housing Strategy 2020 of 110,000 social housing units includes the delivery of 35,000 new social housing units and 75,000 units through the private rented sector supported mainly through the Housing Assistance Payment (HAP).

There has been a number of relevant publications in recent times with suggestions and options in relation to rent certainty, notably the report produced for the PRTB by DKM Economic Consultants, Rent Stability in the Private Rented Sector and the National Economic and Social Council (NESC) report Ireland’s Rental Sector: Pathways to Secure Occupancy and Affordable Supply. Stakeholders representing landlords and tenants have also been vocal on this topic.

The regulation of rent raises many complex economic and legal issues and I have to be satisfied that any measures proposed are balanced and have the desired effect on the rental market while being fair to landlords and tenants alike. Ultimately, any decision in relation to rent certainty is a matter for Government and it is my intention to bring proposals to Government for consideration as soon as the necessary preparatory work has been completed.