Rory Hearne (Dublin North-West, Social Democrats)
Link to this: Individually | In context

247. To ask the Minister for Housing, Planning, and Local Government his Department's analysis of the forecast effect on current spending on the HAP and RAS schemes as a result of the Government's proposed reforms to rent pressure zones; the extent to which an expansion of those schemes is likely due to increased rents; and if he will make a statement on the matter. [36721/25]

James Browne (Wexford, Fianna Fail)
Link to this: Individually | In context

In line with a commitment under Housing for All, my Department undertook a review of the private rental market, published in July 2024. One of the key recommendations was that a comprehensive examination of the current Rent Pressure Zone (RPZ) system should be undertaken.

This review, carried out by the Housing Agency and submitted to my Department at the end of April, assessed the operation of RPZs since their introduction and their impact on the rental market, including the retention of landlords and attraction of new investment. The Housing Agency’s preferred recommendation was to modify current RPZ rent controls. The full report is available at the following link: www.housingagency.ie/publications/review-rent-pressure-zones-report

In response, the Government has approved a suite of measures to modify rent regulation and to strengthen tenancy protections and provide greater certainty for the rental sector. Legislation will be published later this year to give effect to these measures.

Rent increases nationally will be linked to inflation, as measured by the Consumer Price Index (CPI). However, to protect tenants in times of high inflation, it is proposed to retain the cap on permissible rent inflation at 2% with limited exceptions. In order to stimulate investment and keep existing landlords in the sector, rents for new tenancies may be reset to market value, where the tenant leaves of their own volition, or breaches their tenant obligations.

Both HAP and RAS are demand led schemes and any additional expenditure requirements will be dealt with as part of the normal annual Estimates process. My Department remains fully committed to supporting these schemes and I will continue to work with the Minister for Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation to ensure these schemes remain adequately resourced to meet demand.