Thomas Pringle (Donegal South West, Independent)
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1089. To ask the Minister for Environment, Community and Local Government the timeframe by which rent certainty proposals will be brought before the Cabinet; and consequentially before Dáil Éireann. [38110/15]

Alan Kelly (Tipperary North, Labour)
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The most recent data from the Private Residential Tenancies Board (PRTB) for Q2 2015 show that on an annual basis, nationally, rents were 7.1% higher than in Q2 2014. Rents for houses were 6.4% higher, while apartment rents were 7.6% 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 Q2 2015, rents were higher by 9.2% in Dublin (with house rents up by 8.8% and apartment rents higher by 9.4%). Annual growth in rents for the market outside Dublin was more subdued. In the 12 months to the end of Q2 2015, rents were higher by 5.8% (with house rents up by 5.8% and apartment rents higher by 5.9%).

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. Social housing has been prioritised by this Government and over €1.7 billion in Exchequer and self-funding was allocated to the Social Housing Strategy between the 2015 and 2016 budgets, to support the provision of over 33,000 units. The Government’s Capital Plan goes beyond 2016 and commits €2.9 billion in capital funding towards social housing out to 2021.

Ultimately, the key to addressing upward pressure on rents is through increasing the supply of housing, which is a core focus of the Government’s Construction 2020strategy. In 2014 the number of house completions was 11,016 units nationally, an increase of 33% on the 2013 figure. The latest figures for new house completions show that 8,914 units were completed to the end of September 2015, up 14% on the corresponding figure for 2014. As announced in Budget 2016, NAMA is aiming to deliver a target of 20,000 residential units before the end of 2020, with 90% of these units to be in the greater Dublin area.

In addition to these measures, I am continuing to work on proposals to address the issue of rising rents. The price of rental property, particularly in the greater Dublin area, presents a serious challenge. The regulation of rent, however, 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 this issue is a matter for Government and it is my intention to bring final proposals to Government for decision as soon as possible.