Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

755. To ask the Minister for Housing, Planning, and Local Government the supports that are being provided to local authorities to find replacement housing for tenants under the rental accommodation scheme in circumstances in which landlords withdraw from the scheme due to limits of the rent pressure zones; and if he will make a statement on the matter. [39200/17]

Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

756. To ask the Minister for Housing, Planning, and Local Government the powers available to local authorities to continue to support housing under the rental accommodation scheme in rent reviews within rent pressure zones which result in significant differences with open market rent prices; and if he will make a statement on the matter. [39201/17]

Eoghan Murphy (Dublin Bay South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 755 and 756 together.

Under the terms of the Rental Accommodation Scheme (RAS), local authorities retain the responsibility to source further accommodation for a household accommodated under RAS, should the dwelling that the household is living in become unavailable through no fault of their own.  It is a matter for local authorities to make every effort to secure suitable alternative accommodation for any household in RAS in the circumstances outlined as quickly as possible.

In light of the pressures on the rental market in certain locations, it can be difficult to source new RAS properties.  In all cases, not just where a tenancy is under threat, there is no bar on RAS households from sourcing alternative accommodation themselves, if they so desire, independent of the local authority. Once the local authority is satisfied that the accommodation meets the needs of the household and conforms to standards for rental accommodation, which are set out in the Housing (Standards for Rented Houses) Regulations 2017, the property can be brought into RAS.

Where possible, local authorities are guided to agree rents which equate to circa one month's rent less than the market rate over a given 12 month period (annualised saving of 8% on market rate) to represent the level of risk transferred to each local authority. However, where there is difficulty in a local authority securing RAS accommodation, there is flexibility in relation to the discount in market rates, at the discretion of the individual local authority. A local authority may also allocate a property to a social housing tenant if a RAS tenancy cannot be sourced.

The issue of properties where landlords have maintained rents at levels substantially below the rents currently being sought has come up in the review of the Rent Predictability Measure and the operation of the Rent Pressure Zones.  In a Rent Pressure Zone the rent increases available to these landlords will be well below those achievable by landlords who have been charging higher rents and driving the rent inflation in the area.  The review has considered the potential implications for RAS tenancies.  Any changes found by the review to be necessary will be addressed in the wider review of Rebuilding Ireland.

At the end of 2016, local authorities report that there were 20,306 households  supported by RAS. A further 540 households transferred from Rent Supplement to RAS between January and July 2017.  RAS remains a significant part of the suite of social housing options currently available to those who are assessed as being in need of housing support.