Noel Rock (Dublin North West, Fine Gael)
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380. To ask the Minister for Housing, Planning, Community and Local Government if his attention has been drawn to the latest rental price report by a company (details supplied) for the last quarter of 2016, which noted the average cost of renting is at the highest level on record; and if he will make a statement on the matter. [10156/17]

Noel Rock (Dublin North West, Fine Gael)
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381. To ask the Minister for Housing, Planning, Community and Local Government the action his Department is taking to tackle the annual rate of rental inflation of 14.5% in Dublin, as reported in the latest rental price report by a company (details supplied) for the last quarter of 2016; and if he will make a statement on the matter. [10157/17]

Simon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 380 and 381 together.

The most effective way to reduce and stabilise rents in the long-term, and benefit the entire sector, is to increase supply and accelerate delivery of housing for the private and social rented sectors. Rebuilding Ireland, the Government’s Action Plan on Housing and Homelessness, aims to increase and accelerate housing delivery across all tenures to help individuals and families meet their housing needs. It sets out over 80 actions that the Government is taking through new policy, new legislation and innovative Budgetary measures to achieve that aim.

Pillar 4 of the Action Plan committed to development of a comprehensive strategy for the rental sector and this was delivered, with the publication of the Strategy for the Rental Sector , which identifies high and rapidly rising rents as the key driver of accommodation insecurity for tenants and a factor in the termination of tenancies. To address this situation, the Strategy introduced a Rent Predictability Measure to moderate rent increases in those parts of the country where the imbalance between demand and supply of rental accommodation is driving rent levels upwards most acutely.

The Planning and Development (Housing) and Residential Tenancies Act 2016 gave effect to, and provided for the immediate implementation of, the Rent Predictability Measure. Areas of the country satisfying the statutory criteria will be designated as Rent Pressure Zones and rent increases in those areas are generally capped at 4% per annum for a period of 3 years. The measure was introduced with immediate effect in the four Dublin Local Authority areas and in Cork City. A further 12 Local Electoral Areas were designated as Rent Pressure Zones on 27 January 2017.

It is important to note that the latest report referred to in the Questions relates to rent price inflation in the period prior to the introduction of the Rent Predictability measures and the Rent Pressure Zones. The data in the report underline the need for and the relevance of the Government's measures.

The provisions limiting rent increases in rent pressure zones apply both at the commencement of a tenancy and at each rent review. In addition, at the beginning of a tenancy, there is a statutory obligation on a landlord in a rent pressure zone to provide a tenant with details of the rent under the previous tenancy of the dwelling, together with a statement as to how the new rent has been calculated. The purpose of this provision is to allow a tenant to ensure that their rent complies with the legislation. The existing prohibition on charging a rent above market rent continues to apply in all areas.

The Act provides that in confirming whether or not the criteria have been met, the information relating to the area concerned must be determined by the information used to compile the RTB Rent Index quarterly report. Statistics in the report referred to in the Question are based on asking rents for those properties which are advertised on that company's website, as opposed to the RTB figures which are based on rents paid in all registered tenancies.