Ruth Coppinger (Dublin West, Anti-Austerity Alliance)
Link to this: Individually | In context | Oireachtas source

11. To ask the Minister for Housing, Planning, Community and Local Government the rationale for reconsidering the implementation of a deposit protection scheme under the control of the Residential Tenancies Board; the details of any lobbying from landlords regarding control of deposits; and if he will make a statement on the matter. [2179/17]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Residential Tenancies (Amendment) Act 2015 provides for, among other things, the establishment of a tenancy deposit protection scheme to be operated by the Residential Tenancies Board.

Indecon Consultants were originally appointed to carry out the research on the development of a deposit retention scheme and they reported in November 2012. The provisions in the 2015 Act were developed subsequently, informed by their analysis. However, a lot has changed in the rental market since the scheme was first envisaged. The scheme was originally intended to be financed by the interest payable on deposits lodged; this is no longer viable in the current market. Furthermore, disputes relating to deposits are no longer the most common dispute type referred to the RTB. In 2015, deposit retention at 22% was the third most common dispute type referred to the Board, behind invalid notice of termination at 23% and rent arrears and over-holding at 32%.

While the Government is fully committed to the principle of ensuring effective protection of deposits, it is now proposed that the current legislative provisions be reviewed to take account of the changed circumstances and determine what improvements should be made to ensure that the scheme, when introduced, can operate effectively.

The development of the Strategy for the Rental Sectorwas supported by a stakeholder consultation workshop and an online consultation process which received close to 500 submissions. Many stakeholders, including landlords, contributed to both processes and their views were taken into account in the formulation of the actions in the Strategy.

The review of the scheme will take place this year with any necessary legislative changes to be included in the general scheme of a Residential Tenancies Bill which, under the Strategy for the Rental Sector, is to be brought forward by end 2017.