Paul Murphy (Dublin South West, RISE)
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408. To ask the Minister for Housing, Planning, and Local Government if his attention has been drawn to reports (details supplied) that average private rent prices have almost doubled since 2012; if the RTB has investigated whether this is permitted, given the implementation of rent pressure zones; and if he will make a statement on the matter. [55243/22]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The Residential Tenancies Acts 2004-2022 (RTA) regulate the landlord-tenant relationship in the private rented sector and set out the rights and obligations of landlords and tenants. The Residential Tenancies Board (RTB) was established as an independent statutory body under the Acts to operate a national tenancy registration system and to resolve disputes between landlords and tenants.

The Planning and Development (Housing) and Residential Tenancies Act 2016 introduced the Rent Predictability Measure to moderate rent increases in those parts of the country where rents are highest and rising fastest. The Residential Tenancies (No. 2) Act 2021 introduced measures in July 2021 to extend the operation of Rent Pressure Zones (RPZs) until the end of 2024 and prohibit any necessary rent increase in a RPZ from exceeding general inflation, as recorded by the Harmonised Index of Consumer Prices (HICP). The Act also provides that rent reviews outside of RPZs can, until 2025, occur no more frequently than bi-annually.

To address the rent affordability challenges building on foot of the unexpectedly fast rising inflation rate, as recorded by HICP (CSO data for September 2022 shows HICP inflation of 8.2 % p.a.), the Residential Tenancies (Amendment) Act 2021 was enacted to provide, from 11 December 2021, a cap of 2% per annum pro rata on rent increases in RPZs where the inflation rate is higher.

In all cases, section 19(1) of the Residential Tenancies Acts 2004-2022 (RTA) prohibits the setting of a rent that exceeds market rent. In general, a rent in respect of a dwelling cannot be reviewed more frequently than annually in an RPZ, or bi-annually outside of an RPZ. In reviewing a rent, a landlord must complete the Notice of Rent Review (available on the RTB’s website) which must be served on the tenant at least 90 days before the new rent becomes payable and requires details of the rent last set for the dwelling and, if the dwelling is in an RPZ, comply with procedures providing for the rent increase restriction and use the Rent Pressure Zone calculator on www.rtb.ieto ensure compliance with the rent setting laws. A landlord must include details of 3 comparable rents in the Notice of Rent Review.

Not all properties in RPZs are subject to the 2% restriction.

An exemption applies to the first rent setting of a tenancy of a dwelling where:

- no tenancy existed in respect of the dwelling during the two years immediately prior to this current tenancy beginning; or

- no tenancy existed in respect of the dwelling where the dwelling is a protected structure, or is in a protected structure or is a proposed protected structure during the 12 months immediately prior to the current tenancy beginning. A protected structure is defined in the Planning and Development Act 2000.

The Residential Tenancies (Amendment) Act 2019 Act provides a legal definition of ‘substantial change in the nature of rental accommodation’ to illustrate the type of works to be carried out to a rental property to qualify for a further once-off exemption from RPZ rent controls in respect of the first rent setting after such works.

Such works shall result in:

- a permanent extension increasing the floor area by 25%; or

- an improvement in the Building Energy Rating (BER) by at least 7 ratings; or

- at least 3 of the following:

- a permanent alteration of the internal layout;

- adaptations for a person with a disability;

- a permanent increase in the number of rooms;

- an improvement in the BER by 3 or more ratings where the original BER was D1 or lower; or

- an improvement in the BER by 2 or more ratings where the original BER was C3 or higher.

Where a tenant is unsure as to the validity of a Notice of Rent Review served, he or she may refer the matter to the RTB for dispute resolution, with redress available to the tenant and may include a direction to pay a refund of any unlawful rent amount paid and an amount of damages.

The RTB also has an Investigations and Sanctions unit dedicated to investigating certain potential breaches of rental law by a landlord referred to as improper conduct under Schedule 2 to the Acts. Since 1 July 2019, the RTB is empowered under Part 7A – Complaints, Investigations and Sanctions – of the Residential Tenancies Acts to investigate improper conduct by landlords including unlawful rent setting in RPZs and to impose sanctions, where appropriate. The RTB has the power to impose sanctions if improper conduct by a landlord is found to have occurred, ranging from a formal written caution and/or a fine of up to €15,000 and/or costs up to €15,000. The RTB publishes any sanction imposed on landlords arising from RTB investigations into breaches of rental law on a dedicated website page – www.rtb.ie/court-orders.