James Browne (Wexford, Fianna Fail)
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I propose to take Questions Nos. 900 and 902 together.

Rent Pressure Zones (RPZs) were introduced under Part 3 of 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. Rent controls are applied on the basis of the objective evidence available via the RTB Quarterly Rent Index Report. The Planning and Development Act 2024, extended the operation of rent controls until 31 December 2025.

Currently, approximately 83% of tenancies across the country are subject to rent controls. The latest Local Electoral Area to be designated a Rent Pressure Zone by the Minister was Athlone (Roscommon) LEA on 26 February 2025.

Section 24A of the Residential Tenancies Acts 2004-2024 sets out the process for designating RPZs. For the purpose of the Act, ‘area’ is defined as either the administrative area of a housing authority or a Local Electoral Area (LEA) within the meaning of section 2 of the Local Government Act 2001.

The criteria to be satisfied by an area under section 24A(4) of the Residential Tenancies Act for designation as an RPZ are as follows:

• the information relating to the area, as determined by reference to the information used to compile each RTB Rent Index quarterly report, shows that the annual rate of increase in the average amount of rent for that area is more than 7% in each of at least 4 of the 6 quarters preceding the period immediately prior to the date of the Housing Agency's proposal, and
• the average rent for the area in the last quarter, as determined by reference to the information used to compile each RTB Rent Index quarterly report, is:
  • in the case of counties Kildare, Meath and Wicklow or an LEA in any one of those counties, above the average rent in the State, excluding rents in the four Dublin Local Authority areas, or
  • in the case of any LEA outside of the Greater Dublin Area (i.e. Dublin, Kildare, Meath and Wicklow), above the average rent in the State, excluding rents in the Greater Dublin Area.

Each RTB quarterly Rent Index Report includes a summary of the data used to establish whether each LEA fulfils the criteria for designation as a RPZ. The Housing Agency and the RTB continue to monitor national rents and if any new LEA meets the designation criteria, it will be designated as a RPZ through the process outlined above.

A review of the Private Rental sector was published in July 2024. It sets out an overview of the rental market in Ireland including the composition of the market and trends in rent levels, sets out suggested policy objectives and considers a range of and potential avenues for policy change to support these objectives.

The impact of Rent Pressure Zones (RPZ) on the rental market was a key issue identified in the review which noted clear challenges with the current system of rent controls using RPZs while acknowledging the need to ensure the regulatory system for the rental market adequately balances the interests of landlords and tenants and supports a sustainable long term model for price regulation.

The Private Rental Sector review recommended a comprehensive examination of the current RPZ system. The Housing Agency is undertaking this review, which will assess the operation of RPZs since their introduction and consider their impact of RPZs on the market and relevant stakeholders. It will then consider whether RPZs should be continued as is, removed, modified or replaced and the expected timeline for its completed review is Q1 2025.

The Government is acutely aware of the housing challenges faced by many sectors of society. It has committed in the Programme for Government, published in January 2025, to introduce a new national housing plan to follow Housing for All. This will be underpinned by multi-annual funding. While this work is being undertaken, the measures detailed in Housing for All continue to be progressed.

As detailed under Housing for All, the Government plans to deliver 18,000 cost rental homes by 2030. A comprehensive implementation strategy is in place to support the various affordable housing schemes now being delivered by a range of delivery partners.

Since its introduction in 2021 to end Q3 2024, 2,640 Cost Rental homes in the State have been delivered by Approved Housing Bodies, Local Authorities, the Land Development Agency and through the Cost Rental Tenant in Situ scheme.

The continued development of Cost Rental homes is supported by my Department through a mixture of capital grants, loan financing, and State equity investment, via the Affordable Housing Fund to Local Authorities, the Cost Rental Equity Loan scheme to Approved Housing Bodies, and the Secure Tenancy Affordable Rental investment scheme which supports delivery by private operators.

The Land Development Agency also continues to advance its delivery of Cost Rental homes through unlocking planning permissions under Project Tosaigh and by developing its own portfolio of State lands. The LDA is targeting 8,000 new homes over the course of the Project Tosaigh initiative. They are currently on track to deliver 5,000 new homes for social housing, Cost Rental and Affordable Purchase to eligible households by end 2026.

My Department publishes comprehensive programme-level statistics on affordable housing delivery activity by local authorities and delivery partners in each local authority area. Data for the years 2022 up to Q3 2024 is published on the statistics page of my Department’s website at the following link:

www.gov.ie/en/collection/6060e-overall-social-housing-provision/?#affordable-housing-delivery

The Secure Tenancy Affordable Rental investment scheme (STAR) aims to invest up to €750 million in the delivery of over 4,000 Cost Rental homes, which will benefit from secure tenancies under cost rental housing legislation and will be let at a minimum of 25% below comparable market rental levels in high demand urban areas.

The Scheme, which launched in July 2023, is designed to assist in addressing viability challenges for developments by providing equity investment to stimulate the creation of cost rental accommodation. Public and private providers can apply to provide cost rental homes under the Scheme and the State will make an equity investment available (max €200k) in return for designation of the homes as cost rental homes for 50 years.

To date, funding of more than €185m has been committed in respect of eight proposals (from the LDA) delivering 1,423 cost Rental homes. The Housing Agency, who manages the Scheme on the Department’s behalf, are currently assessing further proposals, with the potential to deliver over 3,200 units in the coming years.

The Government also extended the Rent Tax Credit to apply in 2024 and 2025 and its value was increased in Budget 2025 to a maximum of €1,000 per renter per year, backdated to 2024.

James Browne (Wexford, Fianna Fail)
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I propose to take Questions Nos. 901 and 903 together.

My Department is supporting the acceleration of affordable housing delivery with funding and other practical measures, both for local authorities, and more widely, by other key partners such as Approved Housing Bodies, the Land Development Agency and via the First Home Scheme.

Funding support is available to all local authorities from the Affordable Housing Fund to deliver new affordable purchase and cost rental homes where an affordable housing need is evident.

Galway City already has funding approval in place for three schemes to deliver 124 affordable purchase homes. Galway County has funding approval to support delivery of 61 homes at Claregalway. Both Local Authorities have further proposals in development. In addition, approval is in place for the delivery of the first cost rental homes by an Approved Housing Body in Galway City this year, with further cost rental homes to be delivered in 2026 and 2027.

Neither Offaly or Roscommon have applied for AHF support to date. I understand that Roscommon County Council recently met with my Department to discuss the development and delivery of a potential affordable purchase scheme.

My Department, in conjunction with the Housing Delivery Co-ordination Office of the Local Government Management Association and the affordable housing team in the Housing Agency, continues to be available to advise and support all local authorities in developing affordable housing schemes that will respond effectively to affordability needs identified.