Bríd Smith (Dublin South Central, People Before Profit Alliance)
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36. To ask the Minister for Housing, Planning, Community and Local Government his plans to take steps to protect tenants that have been served with rent reviews that are demanding 50% and 60% rent rises by landlords trying to evade the proposed rent caps in some areas; and if he will make a statement on the matter. [2147/17]

Bríd Smith (Dublin South Central, People Before Profit Alliance)
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40. To ask the Minister for Housing, Planning, Community and Local Government if his attention has been drawn to the huge rent increases facing some tenants on foot of rent review demands notified by landlords in the days before his recent Bill was passed by the Houses of the Oireachtas; and if he will make a statement on the matter. [2146/17]

Simon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 36 and 40 together.

The Residential Tenancies Acts 2004 to 2016 regulate the landlord-tenant relationship in the private rented residential sector and set out the rights and obligations of landlords and tenants. The Residential Tenancies Board (RTB) was established as an independent statutory body under the Acts to operate a national tenancy registration system and to resolve disputes between landlords and tenants.

The Acts provide that rents may not be greater than the open market rate and generally may only be reviewed upward or downward every 24 months unless there has been a substantial change in the nature of the accommodation that warrants a review. Tenants must be given 90 days’ notice of new rent and may make an application for dispute resolution to the RTB where they feel the rent increase is in excess of the market rent. These provisions have effect notwithstanding any provision to the contrary in a lease or tenancy agreement.

On 13 December, Government approved the publication of a Strategy for the Rental Sector, which delivers on a commitment made under the Rebuilding Ireland: Action Plan for Housing and Homelessnesswhich was published in July 2016.

One of the measures contained in the Strategy is the introduction of a Rent Predictability Measure. This is a new provision that will moderate the rise in rents in the parts of the country where rents are highest and rising.In these areas, called Rent Pressure Zones, rents will only be able to rise by a maximum of 4% annually. This measure has been applied immediately to Dublin and Cork city because they already meet the criteria for a Rent Pressure Zone.

The Planning and Development (Housing) and Residential Tenancies Act 2016 introduced the Rent Predictability Measure with effect from 24 December 2016. If a valid notice of new rent was served on a tenant before the legislation was enacted, or a valid rent review commenced before that date, then the rent pressure zone formula does not apply.

However, a rent review cannot take place until 24 months has elapsed since either the commencement of the tenancy or since the last rent review under the tenancy and the rent set may not be greater than the open market rate. Where the tenant feels that these conditions have not been fulfilled, they may initiate a dispute resolution procedure with the RTB.

A notice of new rent must be in writing and must be accompanied by information in relation to the rents of 3 other similar dwellings in the area. The purpose of this provision is to ensure that tenants are adequately informed in relation to prevailing rents and are aware of their rights under the Act, particularly in relation to market rent and the procedures for bringing a dispute to the Residential Tenancies Board where a tenant believes the new rent is in excess of market rent.

Where a tenant brings a dispute to the Residential Tenancies Board regarding the validity of a notice of new rent, the rent may not increase until the proceedings have been determined.