Written answers

Wednesday, 18 September 2024

Department of Housing, Planning, and Local Government

Rental Sector

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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370. To ask the Minister for Housing, Planning, and Local Government the safeguards that have been put in place to ensure that tenants living in multi-unit dwellings owned by real estate investment trusts or commercially owned landlords who access the community energy grant scheme do not face the threat of eviction and or increased rents; and if he will make a statement on the matter. [36107/24]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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The Sustainable Energy Authority of Ireland (SEAI) Community Grant supports the upgrade of homes, community buildings and businesses across Ireland to become more energy efficient and reduce costs.

The Residential Tenancies Acts 2004-2024 (the RTA) regulate the landlord-tenant relationship in the private residential rented sector, and set out the rights and obligations of landlords and tenants. Subject to the limited number of exceptions set out in section 3(2), the RTA applies to every dwelling that is the subject of a tenancy including privately own multi-unit dwellings. The RTA limits the grounds for tenancy termination and provides procedures for lawful tenancy terminations and rent setting.

As detailed below, the RTA strictly limits the termination of a tenancy on the ground of substantial refurbishment or renovation to works that are certified for health and safety reasons to require at least 3 weeks of vacant possession to complete. In the case of a tenancy termination on this ground, the landlord must offer to re-let the dwelling to the tenant upon completion of the works where the tenant has made available their contact details for such a re-let offer to be made.

Paragraph 5 of the Table to section 34 provides for the termination of a tenancy where the landlord intends to substantially refurbish or renovate the dwelling or the property containing the dwelling in a way which requires the dwelling to be vacated for that purpose (and, where planning permission is required for the carrying out of that refurbishment or renovation, that permission has been obtained) and the notice of termination (the “notice”) contains or is accompanied, in writing, by a statement—

  • specifying the nature of the intended works,
  • that, in a case where planning permission has been obtained, a copy of the planning permission is attached to the notice or statement,
  • that planning permission is not required and the notice specifies
    • the name of the contractor, if any, employed to carry out the intended works, and
    • the dates on which the intended works are to be carried out and the proposed duration of the period in which those works are to be carried out, and
    • that the landlord, by virtue of the notice, is required to offer to the tenant a tenancy of the dwelling if the dwelling becomes available for reletting by reason of the completion of the works of refurbishment or renovation.
In addition, the notice must contain or be accompanied by a certificate in writing of a registered professional (within the meaning of the Building Control Act 2007) stating that—
  • the proposed refurbishment or renovation works would pose a risk to the health or safety of the occupants of the dwelling concerned and should not proceed while the dwelling is occupied, and
  • such a risk is likely to exist for such period as is specified in the certificate which shall not be less than 3 weeks.
Section 19(1) 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 a Rent Pressure Zone (RPZ), or bi-annually outside of a RPZ. A rent review can occur more frequently where, within the relevant period, a substantial change in the nature of rental accommodation (as described below under section 19(5A)) has occurred that warrants an adjustment to the rent.

In reviewing a rent, a landlord must complete the Notice of Rent Review (available, with related information, on the Residential Tenancies Board’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.

Section 19(5A) provides a legal definition of ‘substantial change in the nature of rental accommodation' which illustrates the type of works to be carried out to a rental property to qualify for a 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.
To address the rent affordability challenges building on foot of the unexpectedly fast rising inflation rate, as recorded by the Harmonised Index of Consumer Prices (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 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 RTA and the residential rental market are kept under constant review by my Department and the RTB.

Photo of Christopher O'SullivanChristopher O'Sullivan (Cork South West, Fianna Fail)
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371. To ask the Minister for Housing, Planning, and Local Government if local authorities are including the cost-of-living increases when calculating rents under the differential rent scheme; and if he will make a statement on the matter. [36126/24]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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Local authorities set and collect rents on their dwellings in accordance with section 58 of the Housing Act 1966. The making or amending of such rent schemes is generally a matter for local authorities within broad principles set out by my Department, including that rent levels should be based on income and reflect tenants’ ability to pay.

Local discretion and flexibility are inherent in the devolved administration of rent schemes and different approaches are taken to rent setting across local authorities. Accordingly, decisions regarding the sources of income included and disregarded for rent assessment purposes, including any cost of living related increases, are matters for individual local authorities.

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