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Dáil
‹ Ceisteanna ó Cheannairí - Leaders' Questions

Rent rises and enforcement

Summary

Deputy O'Callaghan highlighted steep rent increases and argued rent regulation is being breached and not enforced. The Tánaiste replied that supply is the answer, cited stabilising or falling rents in some recent data, and said RTB enforcement powers and sanctions are in place, while the Deputy insisted the law is still being flouted.

The Residential Tenancies Board, RTB, rent index makes grim reading for renters and is yet another confirmation of what we already know: rents are out of control and there are no upper limits. Someone looking to rent will have to pay €369 per month more than when the Government took office. Last year, rents in existing tenancies rose by 4.5% in Dublin city, 5% in Cork city, 5.4% in Waterford city, 5.5% in Limerick city and 6.1% in Galway city. These increases are taking place in rent pressure zones, RPZs. In rent pressure zones, rents on existing tenancies are not allowed by law to go up by more than 2% per year. Despite this, there is no evidence the Government is doing anything to enforce the laws that are supposed to protect renters. Rents are at their highest ever level and have almost doubled in the past decade. There are record numbers of people homeless, record house prices and record numbers of adults living in their childhood bedrooms, yet I know the Tánaiste will stand up in a few minutes and tell me the Government's housing plan is working. He will tell us commencements are up and will not mention house completions - the figure that really matters - are down 12% in the first quarter of this year.

The spin is not working. Actually, it is just antagonising people and making them angry because they are the ones paying the price for the Government's failure. Renters are paying extortionate sums to landlords. People on average incomes are finding it extremely difficult to get by. Once rent, bills and food are paid for, there is almost nothing left. It is impossible to save for a deposit or to see a way out of an endless cycle of rent increases and housing insecurity. Every part of the country is in the grip of a rental crisis. We have hard data that clearly shows the Government's rent regulation measures are not working. They are not being enforced; they are being flouted blatantly. There is nowhere in the country where the 2% rent cap is being adhered to. Given this clear and persistent breach of rent regulation law, what exactly is the Government doing to ensure it is enforced? Why is there impunity for landlords breaking this law?

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I do not doubt the Deputy's commitment to the housing issue, but he presented a narrative that is almost wholly negative, as if nothing was happening in housing or house building. He omitted to say that in quarter 4 last year, rents had not just stabilised but very modestly came down. He is looking at the annualised figures, which may indicate the increased supply of last year and the year before is beginning to have an impact. The answer is supply.

I have watched the Deputy's policies for quite a while and there is no doubt his policies for the rental sector would depress supply, reduce the number of houses available for rent and continue the worrying exodus from the market by landlords, particularly those with one house in addition to their own home, using it for a potential pension in the future or whatever. The vast majority of landlords are small and many are getting out of the rental market. The uncertainty, the general commentary around it and specific policy proposals, they argue, have led to a decline in the number of rental properties available. We have to do everything we can to ensure more supply comes into the rental market and, in addition, to build more houses.

It is not spin but factual to say that since the Government came into office 110,000 houses have been built. That is a fact, notwithstanding the two lockdowns for the construction sector as a result of Covid. We had 33,000 new house completions in 2023, the highest in 15 years, and exceeded our target by 13%. Some 33,000 homes were commenced in 2023, with 4,900 housing starts in March 2024, an increase of 51% on March of last year, which the Deputy did not refer to. That is the highest number of homes commenced in any March since records began. Meanwhile, planning permission was granted for over 41,000 new homes in 2023, an increase of 21%. The volume of purchases by all households increased to 50,000 in the year to February 2024 with more than one third of those first-time buyers. Nearly 38,000-----

Comment on this

Is the Tánaiste going to answer the question?

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-----social homes were added to the social housing stock in quarter 4 2023. Last year also saw the highest level of new-build social homes since 1975: 8,100 homes, or 12,000 social homes delivered in total if leasing and acquisition and so forth are taken into account. There is a strong pipeline of 22,500 social homes. That is the way to deal with the rental issue. We simply have to increase supply and build more homes - social homes, affordable homes, cost-rental homes and so forth. There is significant regulation of the rental market. The Deputy knows that. Some 77% of the country is covered by rent pressure zones as we speak.

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I asked the Tánaiste two simple questions about the rent regulation law being broken and he did not reply. I ask him to reply to those. The countries in Europe with the largest rental sectors also have strict rent regulation that is enforced and very good security of tenure for renters. In contrast, Ireland has some of the highest rents in Europe, very poor security of tenure for renters and the rent regulation law, limited as it is, is being flouted and not enforced. Will the Tánaiste answer the question on that? Given there is hard data and clear evidence of the law being breached, what exactly is the Government doing to ensure it is enforced? Is it doing anything at all? Is that why the Tánaiste is not answering the question? Is the Government not doing anything about it? What will it do about it? Why is there impunity for landlords on this? Why is the law not being applied effectively on this and enforced?

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There is no impunity. That is a wrong assertion.

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The figures show it.

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The law is being applied and we have legislated for tenancies of unlimited duration, restricted the level of upfront payments required of tenants and legislated to increase the notice-to-quit period for tenancies of three years' duration or less. The minimum notice a landlord must give a tenant of less than three years' duration has been increased from 28 days to three months. Changes to the housing assistance payment will secure and expand tenancies.

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What about the rent regulation law being flouted?

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In terms of non-compliance, the RTB has enhanced powers of investigation and sanctioning, and additional resources to ensure-----

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It is clearly not using them

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-----that the full protection against unlawful rents in RPZs can be enforced. As a result of investigations conducted by the RTB, 180 sanctions have been imposed on landlords for improper conduct and they have been published on the board's website, which the Deputy did not reference.

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A total of 180 when the entire country is being breached.

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As I said, 77% of published sanctions for improper conduct are for breaches of rent pressure zones. There can be breaches on all sides, which the Deputy never articulates.

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Renters are not breaking rent regulation law.

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As to one of the factors in people exiting, the Deputy should perhaps inquire into that also.

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Tenants are putting up their own rent, Cian.

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In terms of the proposals the Deputy has put forward, I do not see any outcome from them other than further depression of supply in the rental market.

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The Government keeps voting down our proposals.

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We know the result of the Government's proposals.

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That is an issue Deputy O'Callaghan needs to address because if we depress supply we will increase prices even more.

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