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Dáil
‹ Leaders' Questions

Rent certainty ending

Summary

Deputy Róisín Shortall warns that rent certainty protections are expiring and says the Government has not acted quickly enough to prevent a worsening homelessness crisis. The Taoiseach says he will raise it immediately with the Minister, points to housing plan measures and extra emergency beds, and says a rental strategy will come soon.

Around this time last year, the then Government introduced the Residential Tenancies (Amendment) Bill to much fanfare. Among its provisions, rent certainty measures were introduced on 4 December 2015. They were not perfect by any means, but they were something. Their effect was that landlords could not increase rents for a two-year period.

However, there was a retrospective element to this measure. For tenancies that were in existence in December 2014, the clock started ticking from then.

Those tenants had protection for a two-year period but the two years are up next week on 3 December. If rent certainty measures are not extended urgently for those very tenants many more families will face massive hikes in their rent, particularly in the case of property controlled by the institutional landlords and by vulture funds. The longer we go without an extension, the more tenants will be affected and the numbers will increase week by week and month by month. It is inevitable that the crisis in homelessness will become even more acute if the Government does not act urgently. Even with the limited controls rents generally went up by about 12% in the past year and they are forecast to go up by at least the same amount in the coming year. Those families who lose their rent certainty next week and in the coming weeks will likely face huge rent hikes in excess of 20%. The Taoiseach needs to act urgently on this matter. For those families whose rent protection expires on 3 December, next week, he must extend their rent freeze to prevent them facing huge hikes in their rent, which will inevitably lead to many more families facing homelessness.

Does the Taoiseach realise that a couple of nights ago, on a very cold winter night, there were 210 people sleeping rough in the Dublin area alone? Those shameful numbers are set to increase exponentially from next week on unless he takes urgent action. Will the Taoiseach act now to prevent the situation becoming even worse? If he does not, it is inevitable that we will see more families on our streets in the coming weeks and months.

Comment on this
Enda Kenny The Taoiseach Fine Gael

I am aware of the figure Deputy Shortall mentioned of homeless people on the streets. It is to be welcomed that an extra 200 beds are now being provided, which brings the total number of beds available in Dublin city to approximately 1,800. It is a short-term measure dealing with the supply issue. As part of the Housing Action Plan the Minister for Housing, Planning, Community and Local Government, Deputy Coveney, has already set out the five pillars and the money to back them by which the question of supply is being dealt with. Clearly, the issue Deputy Shortall raised about rent certainty coming to an end is a matter of concern to the Minister. I have already said that he will very shortly bring before the House a comprehensive rental strategy dealing with rents, the opportunity to have longer leases in respect of tenanted dwellings whereby people can rent for a longer period and a number of other measures that he hopes to bring before the House.

I was not aware the rent certainty issue raised by Deputy Shortall is fading out on 3 December. I will bring that immediately to the attention of the Minister.

Comment on this

It is extraordinary that the Taoiseach was not aware of that, or that his Cabinet colleagues were not aware of it and were not planning action to avoid a greater catastrophe in terms of the homelessness situation. The Taoiseach needs to act urgently in the coming days to address the matter.

Last week it was reported in The Irish Times that David Ehrlich of the IRES Real Estate Investment Trust, REIT, made the following comments in talking about the Irish rental situation. He said, "It’s a great market" and "We’ve never seen rental increases like this in any jurisdiction that we’re aware of". He went on to say, "I truly feel badly for the Irish people". Of course he is answerable to the REIT's investors not to the tenants that are in his properties. The Government is making assumptions based on a functional market when it is in fact a completely abnormal market, and it is abnormally good for investors like IRES REIT.

Comment on this

I thank Deputy Shortall.

Comment on this

We are told a comprehensive strategy is due to be introduced for the rental market. We do not know when that will happen but it will not come quickly enough to address the imminent dangers renters will face from next week.

The Taoiseach must commit to addressing this looming problem for so many families in the coming weeks and months. Will he give such a commitment?

Comment on this
Enda Kenny The Taoiseach Fine Gael

I have already given the Deputy a commitment. Sometimes when you tell the truth here, you are also pilloried for it. I said I would bring the matter to the attention of the Minister forthwith. I have made the point to the Deputy that part of the Minister's action plan is the provision of 1,500 rapid build units and 1,600 vacant units sourced by the Housing Agency, as well as providing for an expanded number of housing assistance payment, HAP, homeless tenancies - 550 this year and 1,200 in 2017.

Comment on this
Enda Kenny The Taoiseach Fine Gael

I heard the Deputy. I said I would bring the matter to the attention to the Minister forthwith and that means immediately. I said the Minister intended to bring a comprehensive rental strategy to the House within a very short period and I am quite sure this will be a part of it. We have pointed to the extra emergency beds that are being made available which will bring the number up to 1,800 in the city. I gave the same count as the Deputy gave the other night. Obviously, we would like to think that this year, no more than last year, unless somebody wants to be on the streets, he or she will have a roof over his or her head and a bed in which to survive.

Comment on this
Enda Kenny The Taoiseach Fine Gael

There are some people who do not want to come off the street, as the Deputy is well aware. She has mentioned the need for certainty for those tenants for whom the rent freeze will come to an end on 3 December. I will bring the matter to the attention of the Minister directly after I leave the Chamber.

Comment on this

I note that we have run over time on Leaders' Questions. Perhaps tomorrow we might have more regard to the time allowed.

Comment on this