Written answers
Tuesday, 14 February 2023
Department of Housing, Planning, and Local Government
Rental Sector
Seán Sherlock (Cork East, Labour)
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252. To ask the Minister for Housing, Planning, and Local Government if he will provide an update under Housing for All for extended rent pressure zones to 2024 and rents linked to the harmonised index of consumer prices. [7113/23]
Darragh O'Brien (Dublin Fingal, Fianna Fail)
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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.
The Act also introduced measures to better protect tenants with affordability by prohibiting any necessary rent increase in a RPZ from exceeding general inflation, as recorded by the Harmonised Index of Consumer Prices (HICP).
To address the rent affordability challenges building on foot of the unexpectedly fast rising inflation rate, as recorded by HICP (CSO data for December 2022 shows HICP inflation of 8.2% 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 will mean that rents in RPZs may only increase by a maximum of 2% per annum pro rata during times of higher inflation.
In all cases, section 19(1) of the Residential Tenancies Acts 2004-2021 prohibits the setting of a rent that exceeds market rent.
Seán Sherlock (Cork East, Labour)
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253. To ask the Minister for Housing, Planning, and Local Government if he will provide an update under Housing for All for an indefinite tenancy to strengthen security for renters. [7115/23]
Darragh O'Brien (Dublin Fingal, Fianna Fail)
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In accordance with both the Programme for Government and Housing for All commitments, the Government has provided for Tenancies of Unlimited Duration through the Residential Tenancies (Amendment) Act 2021. The Act was signed into law on 11 December 2021.
All new tenancies created on or after 11 June 2022 will become tenancies of unlimited duration once the tenancy has lasted more than 6 months and no notice of termination has been validly served on the tenant. The aim is to enhance security of tenure for tenants and to simplify the operation of the Residential Tenancies Acts 2004-2022.
As existing Part 4/further Part 4 tenancies terminate/expire over time or are renewed, it will involve the creation of a new tenancy of unlimited duration in respect of any such a rented dwelling. The Residential Tenancies (Amendment) Act 2021 also provides that a landlord may grant his or her consent to any existing tenancy being treated as a tenancy of unlimited duration.
Seán Sherlock (Cork East, Labour)
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254. To ask the Minister for Housing, Planning, and Local Government if he will provide an update under Housing for All for an upfront deposit and rent payments capped at two months value. [7116/23]
Darragh O'Brien (Dublin Fingal, Fianna Fail)
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As committed to under Housing for All, section 7 of the Residential Tenancies (No. 2) Act 2021 inserted a new section 19B into the Residential Tenancies Act 2004 which applies to tenancies created on or after 9 August 2021, to restrict the total amount that anyone is required to pay to a landlord by way of a deposit or an advance rent payment to secure a tenancy to no more than the equivalent of two months’ rent (i.e. any deposit cannot exceed one month’s rent and any advance rent payment cannot exceed one month’s rent). A restriction of the equivalent of one month’s rent is also placed on the amount that a tenant is obliged to pay as a regular advance rent payment to a landlord during a tenancy.
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