Written answers

Tuesday, 16 October 2018

Department of Housing, Planning, and Local Government

Rent Pressure Zones

Photo of Tony McLoughlinTony McLoughlin (Sligo-Leitrim, Fine Gael)
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676. To ask the Minister for Housing, Planning, and Local Government if County Sligo will be included as a rent pressure zone in view of the 29% increase in renting costs since 2016 (details supplied); and if he will make a statement on the matter. [42393/18]

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael)
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Section 24A of the Residential Tenancies Acts 2004-2016 provides that the Housing Agency, in consultation with housing authorities, may make a proposal to the Minister that an area should be considered for designation as a Rent Pressure Zone. Following receipt of such a proposal, the Minister requests the Director of the Residential Tenancies Board (RTB) to conduct an assessment of the area to establish whether or not it meets the criteria for designation and to report to the Minister on whether the area should be designated as a Rent Pressure Zone. For the purpose of the Act, ‘area’ is defined as either the administrative area of a housing authority or a local electoral area within the meaning of section 2 of the Local Government Act 2001. There is no provision for any other type of area to be designated as a Rent Pressure Zone.

For an area to be designated a Rent Pressure Zone, it must satisfy the following criteria set out in section 24A(4) of the Residential Tenancies Act 2004 (as inserted by section 36 of the Planning and Development (Housing) and Residential Tenancies Act 2016):

(i) the annual rate of rent inflation in the area must have been 7% or more in four of the last six quarters; and

(ii) the average rent for tenancies registered in the area with the RTB in the last quarter must be above the average national rent (the National Standardised Rent in the RTB’s Rent Index Report) in the last quarter (€1,094 per month in Q2 2018).

The RTB Rent Index Report includes a summary in Table 9 of the data used to establish whether each Local Electoral Area fulfils the criteria for designation as a Rent Pressure Zone. This allows everyone to see exactly where their area stands in relation to average rent levels and increases and possible designation.

Further information on Rent Pressure Zones and designations is available on my Department's website at by searching 'rent pressure zones - information'.

The data from the Rent Index Report for Q2 2018 relating to the 2 local electoral areas in County Sligo is detailed in the following table.

Local Electoral AreaQuarters > 7%Average 2018 Q2 (€)
Ballymote –Tubbercurry4€548.04
Sligo3€691.40

Neither of the local electoral areas in County Sligo has been designated as RPZ’s to date and it remains the position that neither fulfils the criteria for designation.

The Housing Agency continues to monitor the rental market and may recommend further areas for designation. Where, following the procedures set out in the Act, it is found at a future date that additional areas meet the criteria, they will be designated as Rent Pressure Zones.

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