Mick Barry (Cork North Central, Anti-Austerity Alliance)
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37. To ask the Minister for Housing, Planning, Community and Local Government his plans to enforce the 4% annual rent increase limits in rent pressure zones; his views on reports of an increase in termination notices and their potential use by landlords to illegally circumvent rent increase limits; and if he will make a statement on the matter. [9035/17]

Simon Coveney (Cork South Central, Fine Gael)
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Where a tenant believes that the rent is set above the market rent or above the permitted increase in a rent pressure zone, introduced under the Planning and Development (Housing) and Residential Tenancies Act 2016, they may refer a dispute to the Residential Tenancies Board (RTB). The RTB may make a declaration as to whether the rent set complies with the legislation and, if it does not comply, may make a declaration as to what amount would comply. The rent cannot be increased pending the determination of the dispute. Where a landlord carries out a rent review, a notice of new rent must be served on the tenant. A notice of new rent must be in writing and include information in relation to the dispute resolution procedures that a tenant can pursue through the RTB if they do not believe the new rent is valid, e.g. if the rent is above market rent or above the permitted increase in a rent pressure zone. The notice of new rent must also 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. In a Rent Pressure Zone, the landlord must also include information and calculations in the notice of new rent that demonstrate that any rent increase is not more than the maximum amount allowed since the rent was last set. In addition, the new legislation provides for a statutory obligation on a landlord at the beginning of a tenancy to provide a tenant with details of the previous rent under a tenancy, and a statement as to how the rent has been calculated under section 19(4), so that a tenant can ensure that the rent set at the start of a tenancy complies with the legislation.

Both landlords and tenants are notified by the RTB when a tenancy has been registered. This notification advises both parties of their rights and obligations in relation to the setting and review of rent, security of tenure, the termination of tenancies, and of the dispute resolution procedures that are available through the RTB.  On-going education and awareness is an increasing focus of the RTB, educating tenants and landlords in relation to their rights and obligations. One of the objectives of this approach is to encourage compliance with the law through measures which encourage best-practice and promote understanding rather than by means of sanctions and offences.

A landlord may not terminate a tenancy under Part 4 of the Residential Tenancies Act 2004 except on clearly defined grounds which are set out in the Table to section 34 of the Act. These grounds include that the landlord intends to sell the dwelling, that the landlord wishes to change the use of the dwelling, and that the landlord requires the dwelling for a family member. A landlord may not terminate a tenancy arbitrarily in order to charge a higher rent to a new tenant.

Amendments introduced in the Residential Tenancies (Amendment) Act 2015 strengthen the protections around tenancy terminations by providing for measures that guard against, for example, landlords falsely declaring that the property is needed for a family member, or that it is going to be sold. In addition, the Act provides for graduated increases in the notice periods that must be given to tenants of the termination of a tenancy so that a landlord must now give a tenant up to a maximum of 224 days’ notice for tenancies of 8 years or more.

Where there is an abuse of the termination procedure, section 56 of the Residential Tenancies Act 2004 provides that a tenant may bring a complaint to the RTB that they have been unjustly deprived of possession of a dwelling by their landlord. On the hearing of the complaint the RTB, it if considers it proper to do so, may make a direction that damages are paid to the tenant; that the tenant be permitted to resume possession of the dwelling, or both.