Cian O'Callaghan (Dublin Bay North, Social Democrats)
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146. To ask the Minister for Housing, Planning, and Local Government his views on the recently published Eurostat data showing that rents in Ireland rents are rising at one of the fastest rates in the EU; the actions he will take to address this; and if he will make a statement on the matter. [3574/23]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The Government acknowledges rents are very high in many areas as a result of pent-up pressures and supply constraints.

The Rent Predictability Measure was introduced in December 2016 under the Planning and Development (Housing) and Residential Tenancies Act 2016 to moderate rent increases in those parts of the country where rents are highest and rising fastest. In an attempt to limit the rate of rent inflation, rent controls were provided under sections 33 to 36 of Part 3 of the Planning and Development (Housing) and Residential Tenancies Act 2016. The annual rate of increase in rents was limited to 4% p.a. in areas designated as Rent Pressure Zones (RPZs) that have experienced sustained and high rental inflation.

The Residential Tenancies (No. 2) Act 2021 enacted in July 2021 restricted any rent increase in a Rent Pressure Zone (RPZ) from exceeding general inflation, as recorded by the Harmonised Index of the Consumer Price (HICP). To address the rent affordability challenges building on foot of the unexpectedly fast rising inflation rate, as recorded by HICP, 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 will mean that rents in RPZs may only increase by a maximum of 2% per annum pro rata during times of higher inflation.

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. The designation of all existing RPZs has also been extended until 31 December 2024. The Act provides that rent reviews outside of RPZs can, until 2025, occur no more frequently than bi-annually. This provides rent certainty for tenants outside of RPZs for a minimum 2 year period at a time. 75% of renters live in areas designated as RPZ's.

In all cases, section 19(1) of the Residential Tenancies Acts 2004-2021 prohibits the setting of a rent that exceeds market rent.

The market rent for a tenancy of a dwelling, means the rent which a willing tenant not already in occupation would give and a willing landlord would take for the dwelling, in each case on the basis of vacant possession being given, and having regard to—

(a) the other terms of the tenancy, and

(b) the letting values of dwellings of a similar size, type and character to the dwelling and situated in a comparable area to that in which it is situated.

Under section 76 of the Residential Tenancies Acts, a tenant can refer a dispute with regard to the amount of a rent set to the Residential Tenancies Board (RTB) for resolution.

The operation of the rental market and the Residential Tenancies Acts 2004-2022 are kept under constant review.