Dáil Éireann Debate, Tuesday - 24 September 2024
230. Deputy Claire Kerrane asked the Minister for Housing, Local Government and Heritage his plans to tackle rising rents across counties Roscommon and Galway; and if he will make a statement on the matter. [37490/24]
Amharc ar fhreagraThe Residential Tenancies Board (RTB) was established as quasi-judicial, independent statutory body under the Residential Tenancies Acts 2004-2024 (RTA) to operate a national tenancy registration system and to resolve disputes between landlords and tenants.
The RTB published the Q1 2024 Rent Index on 12 September 2024. The quarterly index tracks price developments in the Irish rental market over time and is based on RTB tenancy registration data that is independently analysed by the Economic and Social Research Institute (ESRI). The quarterly Rent Index provides the most accurate picture of how average rents are changing for new and existing tenancies in Ireland. The figures published compare the standardised average rent for all new and existing tenancies registered in Q1 2024 with a similar but not identical sample of all tenancies registered in the previous quarter and in Q1 2023.
As part of the RTA, the Planning and Development (Housing) and Residential Tenancies Act 2016 taking account of the constitutionally protected property rights of landlords, introduced a targeted Rent Predictability Measure 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. Currently, 82% of tenancies across the country are subject to rent controls.
The Administrative Area of Galway County Council was designated as a RPZ on 12 September 2024, and therefore is subject to rent controls.
The data from the Rent Index Report for Q1 2024 relating to the local electoral areas (LEA) of County Roscommon is detailed in the table below:
|
Local Electoral Area (LEA) |
Quarters >7% |
Standardised Average Rent in New Tenancies |
Standardised Average Rent in Existing Tenancies |
|
Boyle |
4 |
€943 |
€770 |
|
Roscommon |
5 |
€945 |
€848 |
|
Athlone |
* |
* |
€1,107 |
*Note: indicates that rents in areas with fewer than 30 observations are not published for statistical reasons.
While the LEA of Roscommon has had five quarters and Boyle LEA has had four quarters of rent increases above 7%, the Standardised Average Rents for these LEA’s have not risen above the Non-GDA Standardised Average Rent in New Tenancies of €1,235, thereby not satisfying the criteria for designation as an RPZ at this time.
The Housing Agency and the RTB continue to monitor national rents and if any LEA in County Roscommon meets the designation criteria, it will be designated as a RPZ.
To address the rent affordability challenges building on foot of the unexpectedly fast rising inflation rate, as recorded by 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 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 2004-2024 prohibits the setting of a rent that exceeds market rent.
The Government’s Housing for All plan is focused on tackling supply and affordability issues, including those in the rental market. The plan contains targets, actions and guaranteed State investment in housing aimed at increasing supply, which in turn will help increase access to affordable rental housing.
Budget 2024 sees the tax credit for renters increase to €750 and allocated €5.1 billion of funding to continue the vital work in progress under Housing for All and supports extra supply coming on stream. This includes affordable Cost Rental homes which are coming onto the market, some of which have been advertised at rates that are 40% to 50% lower than market rent. Hundreds of Cost Rental homes have been tenanted in less than 12 months.
Where a tenant is unsure as to the validity of a Notice of Rent Review served, he or she may refer the matter to the RTB for dispute resolution under Part 6 of the Acts, with redress available to the tenant and may include a direction to pay a refund of any unlawful rent amount paid and an amount of damages. For those landlords who are not in compliance with RPZ requirements, the RTB have stated that, as a priority they will be communicating with these landlords in an effort to bring them into compliance. Furthermore, the RTB has stated that it will be using its full powers to investigate and sanction non-compliant landlords, where it is deliberate and ongoing.
Since July 2019, the RTB is empowered under Part 7A – Complaints, Investigations and Sanctions – of the Residential Tenancies Acts to investigate improper conduct by landlords and to impose sanctions, where appropriate. The RTB has the power to impose sanctions if improper conduct by a landlord is found to have occurred, ranging from a formal written caution and/or a fine of up to €15,000 and/or costs up to €15,000.
