Róisín Shortall (Dublin North West, Social Democrats)
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738. To ask the Minister for Housing, Planning, and Local Government if his attention has been drawn to a study by a group (details supplied) which found over 90% of properties available for rent were beyond the affordability of persons on HAP; the steps he is taking to address this; and if he will make a statement on the matter. [54185/17]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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Rebuilding Ireland sets out the Government's ambition to increase the supply of housing, in terms of social housing, the private rental market and private housing for purchase. In the context of social housing, this will involve a blended approach to delivery and providing local authorities with a range of mechanisms to achieve the best value for money within the financial resources available. I have made it clear that there must be an increased focus on building new social housing homes, and it is in that context that I increased the targets for new social housing over the period to 2021 to 50,000 and have provided the necessary financial resources to achieve that.

The Housing Assistance Payment (HAP) Scheme plays a vital role in housing eligible families and individuals. There are currently more than 30,000 households having their housing needs met via HAP. On average, 350 new households are supported by HAP each week in 2017, and the Rebuilding Ireland 2017 target of supporting 15,000 additional households with the scheme has been exceeded. The increased HAP 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.  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.

From available data, at the end of Q3 2017, approximately 20% of the total number of households being supported by HAP were benefiting from the additional flexibility that was provided to local authorities to exceed the maximum rent limits. When the additional discretion available to homeless households in the Dublin Region is removed, 14.4% of households nationally were benefiting from the additional flexibility. In those cases, the average rate of discretionary payment being used was 14.9% above rent limits provided.

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 three 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.

My Department and I are constantly monitoring HAP data, as well as other key information relating to the private rental market.  Indications are that the current HAP rent limits and the flexibility to exceed those rent limits provide local authorities with sufficient capacity to assist households in securing rented accommodation that meets their needs. Increasing the HAP rent limits in particular local authority areas could have further inflationary effects on the private rented sector, which could have a detrimental impact on the wider rental market, including for those households who are not receiving HAP support. Based on the data outlined above, I am currently satisfied that the maximum rent limits, together with the additional flexibility available to local authorities, are generally sufficient to meet the demand of the rental market in these areas.

I continue to keep the operation of the HAP scheme under review but I am currently satisfied with how the scheme is operating and I consider it to be a key vehicle for meeting housing need and fulfilling the ambitious programme committed to under Rebuilding Ireland.