Michael Collins (Cork South West, Independent)
Link to this: Individually | In context | Oireachtas source

420. To ask the Minister for Housing, Planning, and Local Government his views on a series of matters in relation the renting of holiday homes in rent pressure zones (details supplied); and if he will make a statement on the matter. [12873/23]

Seán Canney (Galway East, Independent)
Link to this: Individually | In context | Oireachtas source

421. To ask the Minister for Housing, Planning, and Local Government if he is aware that landlords whose property is located within a rent pressure zone and where the rent was historically low cannot now raise the rent to match other rented properties in the area and are being penalised; and if he will make a statement on the matter. [12874/23]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

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 an 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. This provides rent certainty for tenants outside of RPZs for a minimum 2 year period at a time.

To address the rent affordability challenges building on foot of the unexpectedly fast rising inflation rate, as recorded by HICP (CSO data for February 2023 shows HICP inflation of 9% 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.

I recognise that some landlords were charging a rent that was below market rent at the time of the designation of their area as a RPZ. It was not appropriate to provide advance notice to landlords of the introduction of the targeted rent controls. To do so would have had an inflationary impact on rents and counter the intent of the measure. The concerns of landlords in this regard are understood but the overall common social good and the need to restrict rent increases in high rental demand areas and prevent homelessness remains paramount. The Government seek to avoid any measure that might give rise to significant and unaffordable rent increases for tenants.

In general, a rent in respect of a dwelling cannot be reviewed more frequently than annually in a Rent Pressure Zone (RPZ), or bi-annually outside of a RPZ. In reviewing a rent, a landlord must complete the Notice of Rent Review (available, with related information, on the RTB’s website – www.rtb.ie) 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 RTB’s Rent Pressure Zone calculator, to ensure compliance with the rent setting laws.

The RPZ calculator can be accessed on the RTB’s website at the following link: www.rtb.ie/calculator/rpz

As set out in the Housing for All Action Plan Update (published in November, 2022), my Department has commissioned a comprehensive review of the private rental sector. This review will take into account the significant regulatory changes over the past several years will report on how our housing system could provide an efficient, affordable, safe and secure framework for both landlords and tenants.

This review will include a thematic review of the principal and relevant elements of the Rental Market and the Government will act on its recommendations. Its conclusion will be utilised to inform future policy direction for the Rental Market.

The review will be concluded as early as possible and will include a public consultation, as well as targeted engagement of various external stakeholders.