Rent increases and rent control
Deputy Brendan Howlin criticises budget measures favouring landlords and warns that rents may rise sharply, pressing for rent control or legislation to give tenants certainty. The Taoiseach says the Government is pursuing a comprehensive housing and rental strategy focused on supply, notes Jan O'Sullivan’s Bill may inform policy, and says renters will benefit from the strategy rather than direct rent controls.
Last week, the Government published a budget that includes tax cuts for landlords, an increase in the threshold for the rent a room scheme and the introduction of a first-time buyer's scheme that has been widely criticised for increasing prices and delivering no meaningful benefit for those at whom it is aimed. The Government managed to introduce those measures while doing nothing for those who rent their homes. New figures published yesterday suggest that the cost of renting a home in Ireland will rise by 25% in the next two years. That is a staggering figure. This projection will alarm hundreds of thousands of people who rent their homes and who have already faced enormous increases in the rents demanded of them. At this point, people deserve assurance from Government that it is aware of their predicament and envisages concrete actions to control rents.
My colleague, Deputy Jan O'Sullivan, has published our party's Social and Affordable Housing Bill, which contains many measures that will be welcomed by Members on all sides of the House. It includes a proposal for a model of rent control to limit increases to changes in the consumer price index.
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The Taoiseach and I had many conversations when we were in government concerning Fine Gael's decision to block the idea of rent control. In view of the astonishing figures published this morning, I hope the Taoiseach will change his view and accept this is a necessary proposal. The introduction of some model of rent control is now imperative.
I ask the Taoiseach to examine the proposals in Deputy O'Sullivan's Bill or introduce Government legislation to bring certainty and comfort to people who are facing this level of increase into the future.
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The budget dealt with a number of issues in this element of the housing sector. It is important that landlords who have property to let are in a position to do that. It is also important that we have a comprehensive rental strategy. The Minister for Housing, Planning, Community and Local Government is committed to publishing and bringing in such a strategy before the end of this year. I commend Deputy Jan O'Sullivan on producing a Bill in this area. I advise her to talk to the Minister, Deputy Coveney, because some elements of her Bill may be acceptable to him. We want to have a comprehensive rental strategy. It will be produced here before the end of the year. As Deputy Howlin is aware, the Government is focused on supply in its efforts to deal with the question of assistance for first-time buyers of new houses. We have deliberately focused on increasing housing supply over a three-year period. I know there has been some discussion or comment about the headroom given beyond the €400,000 limit, up to €600,000. There can be further discussions on that during the Committee Stage debate on the forthcoming finance Bill.
The Minister for Finance proposed a number of small changes in this regard when he presented the Bill yesterday. Obviously, he is prepared to discuss those changes. We are focused on increasing supply because the more houses there are, the better the opportunity for people to get affordable houses. The programme being advanced by the Minister, Deputy Coveney, aims to deliver 41,000 social housing units over the period. I welcome the Bill proposed by Deputy Jan O'Sullivan and I congratulate her on it. I advise her to sit down with the Minister and his officials because it may well be that the element of rent she has referred to in her Bill can be reflected in some way in the comprehensive strategy being adopted by the Minister. Deputy Howlin is well aware that his colleague, the former Minister, Deputy Kelly, had clear views on rent. I note how the Deputy's language has changed from saying that the Fine Gael Party blocked everything to prevent the Labour Party from getting on with its business or whatever else.
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In fact, we were focused, as we are now, on increasing the supply of houses for people across the country.
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Maybe I am encouraged by the new dispensation whereby all rows in government are now public.
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It sounds like a job for the Citizens' Assembly.
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The Government appears to want people to save up for homes, but they cannot do so if rents are increasing by 25%. There is no point in putting money into the rent supplement or housing assistance payment schemes, as the Government has done, if there are no measures to control the surge in rents. All the Government is doing is putting State money directly into the hands of landlords. The inescapable reality is that people's salaries are not back to 2007 levels, but rents are now surging beyond 2007 levels. The Government must act now. I do not think it can leave it to the marketplace alone. When will the comprehensive strategy that was mentioned by the Taoiseach be published? Can we have a date for that? Will the Government include in the strategy legislation to create rent certainty into the future?
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The previous Government was very clear in its attitude to supporting people who rent. Many thousands of families benefited from the introduction of the housing assistance payment scheme and the increase in rent supplement. I do not have an actual date for the publication of the comprehensive rental strategy that the Minister will produce. I assure Deputy Howlin that he is committed to bringing it in before the end of this session. I am sure he will do that. The Deputy said that the Government needs to act now. That is what the Government is doing with the introduction of the most comprehensive housing programme in the history of the State and the provision of money to back it.
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Of course rents will increase if there is a shortage of supply at a time of increased demand. One cannot deal with that without increasing the supply of houses. As the Deputy knows, the five pillars of the programme deal with the homeless and those who are living in hotel rooms and inadequate accommodation.
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Will the Government control rents? That is the question.
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Those who need new houses will be assisted through the initiative aimed at those who are buying such houses. The comprehensive rental strategy is one element of the Government's comprehensive housing programme. Deputy Jan O'Sullivan's recommendations will be taken into account in that context.
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What about the question regarding rent control?