Tommy Broughan (Dublin Bay North, Independent)
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288. To ask the Minister for Housing, Planning, and Local Government the measures he is taking to bring rents down to affordable levels for persons on low incomes, in particular in Dublin and other urban districts; the way in which rents will be reduced in 2018 across the areas; and if he will make a statement on the matter. [47471/17]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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The Strategy for the Rental Sector, published in December 2016, recommended the introduction of a Rent Predictability Measure to moderate rent increases in those parts of the country where rents are highest and rising - where households have greatest difficulties in finding accommodation they can afford. The Planning and Development (Housing) and Residential Tenancies Act 2016 provided for the Rent Predictability Measure and for areas, called Rent Pressure Zones (RPZs), where rents can now only rise by a maximum of 4% annually for a period of 3 years.

This measure was implemented immediately in the four Dublin local authority areas and in Cork City as these areas already met the criteria for a Rent Pressure Zone in December 2016. A further 12 Local Electoral Areas (LEAs) were designated in January 2017, with the measure further extended to Maynooth and Cobh LEAs in March 2017 and to Drogheda and Greystones LEAs in September 2017.

The data collected by the Residential Tenancies Board to produce its Rent Index Data shows that although there is still volatility in rental trends from quarter to quarter, the rate of increase in rents has slowed measurably since the designation of RPZs.

In addition a number of significant changes are being made to the Rent Pressure Zone system following a recent review. Charging rents above those permitted by the legislation will become an offence and the RTB will be provided with the powers to investigate and prosecute transgressors so that it will no longer be solely up to the tenant to initiate a dispute. The conditions under which properties can be exempted from the rent increase limits will be more closely specified and landlords will have to notify the RTB when claiming an exemption. These changes will strengthen the impact of the Rent Predictability Measure and will further slow the growth in rents.

To deal with the issue of affordable rents on a longer term and sustainable basis, my Department, reflecting the commitments in the Programme for a Partnership Government and the Strategy for the Rental Sector, will lead an Expert Group to develop a viable cost rental model for the Irish rental sector taking into account the work already completed in this area, including by the National Economic and Social Council and others. This Group will address issues such as funding mechanisms, the need to grow the necessary institutional capacity, particularly within the AHB and not-for-profit sector (whether through mergers, new entrants or strategic partnerships), rent levels, the households to be targeted and the appropriate regulation mechanisms.

The Expert Group will assess the benefits that a larger and more developed not-for-profit segment would bring to the rental sector and the housing system, by increasing supply of rental accommodation for low to middle-income households and ensuring new capacity is developed. Following the conclusion of the focused review of Rebuilding Ireland, it is my intention to establish this Expert Group in the coming weeks. A proposal regarding its membership and terms of reference is currently being finalised in my Department.