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Dáil
‹ Ceisteanna ar Reachtaíocht a Gealladh - Questions on Promised Legislation

Rents and housing supply

Summary

Deputies Calleary and Doherty raise soaring Dublin rents, rent pressure zone breaches, weak housing completions and calls for a rent freeze and tax credit. The Housing Minister says rents are too high, rent controls are working but need strengthening, and defends the Government’s housing approach amid heated interruptions.

I gather the Taoiseach is in Los Angeles today. I hope he takes time to note that rents in Los Angeles are cheaper on average than rents in Dublin. Average rents in Dublin today are €1,713 a month, which is an increase on this time last year. The ESRI stated this morning it has reduced its projected figures for the number of house completions this year. The notion that the Government is catching up with supply is once again being proven to be wrong. The ESRI is particularly asking for a much more aggressive approach to taxing and following up on vacant sites. Does the Minister for Housing, Planning and Local Government agree with the ESRI assessment this morning? Is the Minister hanging his head in shame at the growing level of rents in this city and his inaction on it? In particular, has the Minister any plans to tackle vacant sites?

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The Minister should answer one question only.

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Eoghan Murphy Minister for Housing, Planning and Local Government Fine Gael

I thank the Deputy for that one question with different parts, which I will address in my answer. I was able to speak to this issue this morning because we were announcing new capital funding of €30 million for Dublin Simon to help with a new detoxification facility on Usher's Island. The reason we can provide that funding is both because of the priority we have made of housing and because the different things the Government is doing in the economy enable it to spend that funding in areas that need such support.

Rents in Dublin are too high. People cannot afford the rents that they are being charged. That is precisely why this House introduced new laws earlier this year, which the RTB has stated it is now implementing, which is welcome. However, there is more that we could do, particularly on affordable home ownership and continuing the supports that we have.

In relation to the ESRI projections, these have now been revised in line with the Government's own projections on housing. I welcome that those two figures - those of the Government and those of the ESRI - are in line.

As for vacancy, there are too many sites still vacant. That is why we introduced the vacant site levy. That is having some impact but we are currently looking at ways to see if it can have more. I can speak about that next month.

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On the same issue, the data released today by the Residential Tenancies Board for the second quarter of 2019 show that the rent pressure zones have been breached in 22 out of 26 counties. In six counties, renters are experiencing double-digit increases. In Dublin, rents are now on average €1,700 per month. That means that a renter in Dublin city is paying €1,600 more this year than he or she was this time last year. That is what is happening with the inertia of the Government. Outside Dublin, Limerick city experienced rent increases of 10.2% while in Waterford, they were 14.1%. Carlow and Offaly experienced the highest rental inflation last year, thereby showing that the rent crisis is neither unique nor confined to urban centres or the commuter belt. The rent pressure zones are failing and have failed dramatically.

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Has the Deputy a question?

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My question to the Government is this: will the Government now do what Sinn Féin called on it repeatedly to do, namely, implement a three-year rent freeze and introduce a refundable tax credit equivalent to one month's rent per year during this period?

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As I stated in my previous answer, rents are too high. We introduced rent controls in 2017. We have independent research that says that rent controls are working but we need them to work better.

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Let the Minister answer.

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The Minister is nearly as laughable as Boris Johnson across the water.

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A Cheann Comhairle?

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If Deputies will not let the Minister answer, perhaps the Minister should resume his seat. We will not have an answer if Deputies will not take it. Deputy Pearse Doherty should resume his seat. The Deputy asked the Minister a question and should allow him the courtesy of answering.

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Can we have a serious statement?

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On a point of information-----

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A brief point.

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-----the Deputy's party supported the strengthening and expansion of rent controls earlier this year because they are working. That is exactly why it supported them.

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I thank the Minister. I call Deputy Howlin.

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Utter rubbish.

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The Deputy is a hypocrite.

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The Minister is provoking the Opposition.

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Deputy Howlin, without interruption.

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