Rent control and housing crisis
Deputy Boyd Barrett challenged the Government’s rent certainty measures, citing sharp rent increases and arguing the legislation had failed. The Taoiseach defended rent pressure zones and warned against direct market intervention, while exchanges with other Members were interrupted by procedural disorder.
The programme for Government states the Government will listen to ideas from others about how to deal with the housing and homelessness crisis. When it introduced legislation on rent certainty, we told the Government the measures would not control rents. We stated it would be necessary to set rents at affordable levels and introduced legislation to achieve this objective, which the Government voted down. Does the Taoiseach accept that, with a report from daft.ie showing an 81% increase in rents since their low point and an increase of 10% in the past year, the Government's legislation has failed and we need legislation that will control and reduce rents to affordable levels? Incidentally, I disagree with my colleagues in Sinn Féin on controlling rents by linking rent increases to the consumer price index because that would not deal with the problem of new tenancies or rising rents. We need to set rents at affordable levels. Given what is happening, will the Government consider this as the only emergency response that would deal with rents, which are spiralling out of control?
Comment on this
I addressed this issue in my answers to previous questions. The daft.ie report published today does not cover the majority of people who are renting and who are protected by the rent pressure zones and face increases of 4% or less. While the Government has heard the suggestions put forward by Deputy Boyd Barrett and his colleagues, which would essentially involve the Government intervening in the market and setting rents at a certain level - presumably a much lower level than their current level - this would be counterproductive for the reasons I gave. It would result in a black market and people paying under-the-counter cash payments and key money to landlords to get around rent controls. It would also further dampen supply because fewer builders would build and fewer people would want to be landlords. For these reasons, the well-meaning proposals made by Deputy Boyd Barrett and his colleagues would make matters much worse for people who are renting.
Comment on this
They could not be any worse.
Comment on this
To respond to the original question asked by the leader of the Opposition, I have confirmed that September was five months ago. The report was, therefore, published between four and a half and five months ago. There are only five short-term proposals, the first being the restoration of mortgage interest relief, which is being done on the basis of an annual increase of 5%.
Comment on this
Somebody gave the Taoiseach a note with an update.
Comment on this
The second proposal was to exempt landlords from the local property tax. The Government does not believe it would be fair to exempt landlords from the local property tax when everyone else has to pay it. Perhaps that is Fianna Fáil policy.
Comment on this
We will have one question and one answer. We cannot make up the rules as we go along.
Comment on this
The Government should have been on top of this issue five months ago.
Comment on this
That shows the priorities. There are no priorities.
Comment on this
The report was published and put on the shelf.