Louise O'Reilly (Dublin Fingal, Sinn Fein)
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57. To ask the Minister for Housing, Planning, and Local Government if he plans to introduce new measures to help reduce rental costs across the State; and if he will make a statement on the matter. [32954/22]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The most effective way to assist renters in the medium to long term is to increase supply and accelerate delivery of housing for the private and social rental sectors.

Housing for All – a New Housing Plan for Ireland sets out the Government’s plan to increase the supply of housing to an average of 33,000 per year over the next decade. One of the ways that the Government is trying to increase the supply of more affordable homes to rent under Housing for All is through the introduction of a new Cost Rental sector, the legislative framework for which was set out in the Affordable Housing Act last year. It is a long-term rental model, under which tenants only pay the cost of providing, managing and maintaining their homes.

We are committed to growing this sector, and through Approved Housing Bodies (AHBs), Local Authorities, and the Land Development Agency (LDA) under Project Tosaigh, approximately 1,500 Cost Rental homes are targeted for completion and tenanting this year alone. Overall, some 18,000 Cost Rental homes are targeted for completion under Housing for All to 2030.

From 16 July 2021, the Residential Tenancies (No. 2) Act 2021 restricts any rent increase in a Rent Pressure Zone (RPZ) from exceeding general inflation, as recorded by the Harmonised Index of the Consumer Price (HICP). It remains the case that any rent amount set cannot exceed market rent.

To address the rent affordability challenges building on foot of the unexpectedly fast rising inflation rate, as recorded by HICP (CSO data for May  2022 shows HICP inflation of 8.3% p.a.), the Residential Tenancies (Amendment) Act 2021 provides, from 11 December 2021, a cap of 2% per annum pro rata on rent increases in RPZs, where the inflation rate is higher. In effect, this means that rents in RPZs may only increase by a maximum of 2% per annum pro rata during times of higher inflation.

The operation of the rental market and the Residential Tenancies Acts 2004-2021 are kept under constant review and any necessary legislation will be introduced.