Written answers

Tuesday, 11 July 2017

Department of Housing, Planning, Community and Local Government

Housing Assistance Payments Implementation

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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801. To ask the Minister for Housing, Planning, Community and Local Government the steps being taken to assist those that have been approved for the housing assistance payment and that cannot source private rented accommodation; if his attention has been drawn to the Government commitment to improve the security of tenure for HAP tenants; the options available to those that cannot even source an initial rental property; if he will carry out a review into the numbers of persons that have been approved for HAP but are unsuccessful in sourcing accommodation; if he has satisfied himself with the housing assistance payment scheme as being an effective means of delivery for tenants; and if he will make a statement on the matter. [32318/17]

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael)
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The Housing Assistance Payment (HAP) is a flexible and immediate housing support that is now available to all eligible households throughout the State. The increased rent limits introduced by the Government last year, together with the additional discretion available to local authorities to exceed the maximum rent limit where necessary, are allowing  HAP households to find suitable accommodation and willing landlords. On average in 2017, 333 additional tenancies are being supported by HAP each week, with just over 24,000 households currently having their housing needs met via HAP and some 18,000 separate landlords and agents currently in receipt of monthly HAP payments. Particular additional targeted supports are available to homeless households in the Dublin and Cork City regions to assist them in finding accommodation in the private rental market, with the support of HAP.

HAP supported tenancies are agreed between the landlord and the tenant; the local authority is not a party to the tenancy and has no role in its agreement. There is no limitation placed by the scheme on the length of tenancy that can be supported by HAP. However, as with other private rental tenancies, the Residential Tenancies Act 2004 (as amended), governs the relationship between landlord and tenant and the length of the tenancy is a matter that must be agreed between the landlord and tenant in that context. 

The Strategy for the Rental Sector, published in December 2016, recognises that high and rapidly rising rents is the most significant and immediate threat to the accommodation security of many households.  For this reason the Government introduced the Rent Predictability Measure and established the system of Rent Pressure Zones to moderate the rise in rents in the parts of the country where rents are highest and rising.  In these areas, for a period of three years, rents may only rise by a maximum of 4% annually.  The practical effect of the measure is that for the next three years, rents, for more than 186,000 households, who currently rent their homes in these areas, will be lower than they would have been if market rents had continued to apply. Rents paid under the HAP scheme are subject to the same measure.

The Planning and Development (Housing) and Residential Tenancies Act 2016, which introduced the Rent Predictability Measure with effect from 24 December 2016, also gives effect to other actions to address tenants’ security:

- The abolition of a landlord’s right, during the first 6 months of a further Part 4 tenancy, to end that tenancy for no stated ground;

- The extension of the term of Part 4 tenancies from 4 to 6 years;

- Where a landlord proposes to sell 10 or more units within a single development at the same time, the sale will be subject to the existing tenants remaining in situ, other than in exceptional circumstances.

My Department has initiated a review of the Rent Predictability Measure. At this stage, the measure has been in place for 6 months and data from the Residential Tenancies Board’s Rent Index Report for Quarter 1 2017 is also available.  Using this latest data, it will be possible to ascertain the effectiveness of the Rent Predictability Measure and whether any changes need to be made.

I am satisfied that the HAP scheme is generally working well but I will keep its operation under on-going review, including considering its effectiveness  as a social housing support, and the impact of the Rent Predictability Measure on Social  Housing Supports, including HAP, as part of the current review.

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