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

Rent increase after freeze

Summary

Deputy Murphy objects to landlords being allowed to use a retrospective increase and effectively bypass the 4% rent-pressure-zone limit. The Tánaiste says he will check the claim with the Housing Minister and says he had not envisaged a retrospective year being applied.

Last year, under pressure, the Tánaiste finally accepted the need to freeze rents. Now, from July, the Government plans to allow landlords to once again hike them up. Even worse, tenants are being told that, rather than a 4% rent increase in the rent pressure zones, they can face up to an 8% increase as landlords are allowed to impose last year's 4% as well. It is bad enough that the rent freeze is being lifted but why on earth are landlords being allowed to apply a rent increase from last year and, effectively, get around the 4% rule? A woman who contacted me is facing an increase of almost 7%, which she simply cannot afford to pay. The Tánaiste has spoken about avoiding a cliff edge in plans to extend business supports. Does he not accept that, for many who have lost out due to Covid, an 8% rent hike in July is also a cliff edge that they are facing? Will he agree, at the very minimum, to intervene to avoid this cliff edge?

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Leo Varadkar The Tánaiste Fine Gael

I thank the Deputy. I will check that out and speak to the Minister, Deputy Darragh O'Brien, about it. As the Deputy knows, in the rent pressure zones, which cover the vast majority of tenancies in the country, the maximum increase is 4%.

I did not envisage that people would be able to apply a retrospective year. An 8% increase for anyone would be a very large increase in any one year. I must admit to not being aware of that and I will talk to the Minster about it.

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