Written answers

Wednesday, 4 May 2016

Department of Environment, Community and Local Government

Rent Controls

Photo of Finian McGrathFinian McGrath (Dublin Bay North, Independent)
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291. To ask the Minister for Environment, Community and Local Government his views on correspondence concerning homelessness and a person (details supplied); and if he will make a statement on the matter. [8936/16]

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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The Residential Tenancies (Amendment) Act 2015, enacted on 4 December 2015, introduced a number of measures to address rent stability and housing supply. In relation to rent stability, the Act provides, inter alia, that the minimum period between rent reviews for tenancies is being increased from 12 to 24 months and this new provision will apply for a 4 year period. In addition, the minimum period of notice of new rent is increased from 28 days to 90 days and longer notice periods for the termination of long-term tenancies have been introduced. Each of these new provisions commenced on enactment.

Further provisions to support rent stability in the 2015 Act include:

- that notice of new rent sent must be in a prescribed form, include details of dispute resolution procedures available through the Residential Tenancies Board (RTB) and be accompanied by details of rent in respect of 3 comparable dwellings in the area;

- that notification of a rent increase to the RTB will include, among other things, a signed statement by the tenant that they are aware of their rights in relation to rent and rent reviews.

With regard to the termination of a tenancy, the Residential Tenancies (Amendment) Act 2015 introduced strengthened protections applying to tenancy terminations in order to safeguard against terminations on false grounds. These measures involve, inter alia, a landlord having to make a statutory declaration as to their intention to sell a property. These provisions will be commenced on 9 May 2016.

Ultimately, a lack of supply and competition in the residential sector is putting upward pressure on rents and the key to addressing rising rents in the medium to long term is through increasing the supply of all forms of housing. The Government is addressing this on a number of fronts, including through Construction 2020; A Strategy for a Renewed Construction Sector and the Social Housing Strategy 2020.

In that regard, a number of important measures have been taken aimed at improving housing delivery viability and increasing supply, including the introduction of a vacant site levy; reductions in development contributions and a targeted development contribution rebate scheme in Dublin and Cork to encourage large scale developments at affordable prices; revised Part V provisions and legislative amendments to introduce greater flexibility and streamlining to the Strategic Development Zone provisions of the Planning and Development Acts. The actions taken under Construction 2020are complemented by the ongoing implementation of the Social Housing Strategyand the plans by NAMA to fund the delivery of 20,000 residential units by 2020.

Laying the Foundations: Housing Actions Report, which was published on 14 April 2016, provides further information on thirty-one major actions taken across the housing spectrum since mid-2014 to increase the supply of housing. The report is available on my Department’s website at -

In recognition of the difficulty faced by households in accessing the housing market, an affordable rental pilot scheme was announced as part of Budget 2016, with €10 million being made available to fund a pilot in 2016. The details of the Scheme are currently being developed by my Department with a view to roll-out later this year.

The Scheme will involve an ongoing annual commitment to secure a long term increase in the supply of affordable properties to meet the needs of those households that would struggle to make rental payments under present market conditions. The pilot Scheme is expected to work on the basis of tenants paying the majority of the rental cost from their own resources, with the State helping to meet the shortfall. It is intended that the scheme would be made available to employed households on low to moderate incomes, as well as being a possible support option for some households who qualify for social housing support. A State policy intervention - such as a subsidy - would be applied to bridge the gap between what people can afford, and what the housing market charges. Such a scheme would also be expected to facilitate and incentivise private investment into this sector.

I am satisfied that an extensive range of housing measures have been undertaken within my powers as Minister and having regard to legal and financial constraints. These measures are outlined in the aforementioned Housing Actions Report. The residential construction sector in Ireland has undergone a very significant shock in recent years and housing output must be kept under review and further action taken as appropriate to ensure that supply returns to the levels required.

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