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Dáil
‹ Ceisteanna ó Cheannairí - Leaders' Questions

Rents, housing supply and tenant protections

Summary

Brian Stanley raises soaring rents, inadequate affordable and cost-rental housing, and the risk of evictions and unrestricted rent increases in Laois. The Taoiseach says nationwide rent-pressure protections and greater housing supply are essential, rejects the claim that the rent cap is ineffective, and points to RTB enforcement and further measures for tenant protection.

I join in welcoming Deputy Holly Cairns back to the Dáil and congratulating her. I also congratulate Deputy Emer Higgins. Life will never be the same again. I wish many years of happiness and joy to them and their partners in the years to come.

I raise the situation regarding renters with the Taoiseach and the out of control so-called "rental market" we have. In a lot of areas now, average rents are more than €2,000. Recent reports have shown how they are skyrocketing. The recent Residential Tenancies Board rent index showed an average annual rent increase of 5.5%. In County Laois, it is more than 10%. In eight successive quarters, there have been significant increases in the county. Families and workers are under significant pressure. Notices to quit are on the increase. There are increasing numbers of them from rack-renting landlords who are seeking vacant possession because they are getting ready for next March when there will be effectively no rent controls on new tenancies and new builds. Some landlords are telling tenants that regardless of whether there is a new tenancy or not, rents will go up. It is a free-for-all.

As an example of that, I raise the case of Alan and Denise. They are just over the limit for social housing and they have children. He is a retained firefighter. They have been in private rented accommodation for nine years. Four months ago, the landlord told them the rent was increasing by 50% - a 50% increase in south Laois. He did that in the first week of June. Of course, he knew what he was doing because on 20 June, the 2% cap came in, so a lot of landlords got in early. Their income is less than €40,000 a year. They have no way forward. Alan is 49 years of age. They have no access to social housing because they are over the limit for social housing. They have no access to cost rentals because they do not yet exist in Laois.

There are no affordables, and in any case he will not get an affordable housing loan.

In the case of Darren, a single man with one child, he has moved from one rent pressure zone to another. He is on €460 a week. He needs a car for work. He pays maintenance. He has a child. He is paying €77 in HAP rent and he is paying €120 a week rent to a landlord. Some workers are paying more than half their income in rent. I do not know if the Taoiseach knows that or not.

Vacant possession and evictions are easy because the grounds in the legislation allow for that - if the landlord is facing hardship, if they require a property for a family member or, God forbid, if they are going to renovate the place. A coat of magnolia paint would even ensure vacant possession. Does the Taoiseach recognise that workers and families who rent are under enormous pressure? We are coming up to budget time and I want the Taoiseach to address this. It is way beyond what people can afford. Will the Taoiseach halt his plans for the introduction of a complete free-for-all in March for new tenancies?

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Verona Murphy An Ceann Comhairle Independent

I thank the Deputy.

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Will the Government ramp up the supply of cost rental and affordable housing to purchase?

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Verona Murphy An Ceann Comhairle Independent

I thank Deputy Stanley.

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We are not creating a free-for-all in terms of the rental market more generally. We are creating a national rent pressure zone, ultimately including the entire country. The bottom line is that we need more supply of houses. We need a significant and substantial increase in the supply of housing. That is the key. Without additional supply we will have a very challenging rental market. The Deputy indicated a case of 50%, which sounds illegal to me. I do not know whether or not the landlord is registered with the RTB. I do not have the specifics of the case but Deputy Stanley can forward them to us afterwards.

As the Deputy is aware, the bottom line is that we have reformed the RPZs. The objective there is to create the opportunity for greater private sector investment in the private rental market to get more apartments built. That is important in terms of choice and greater access for people to apartments. We have done it in a way that continues to protect tenants. Very substantial protections have been introduced for tenants in the past five years, compared to what was there before. That must be acknowledged. I fully accept that costs are high. That is why we brought in the rent tax credit to be of assistance to renters in meeting the increased cost of renting. The reforms we announced on 10 June will strengthen the rights of new and existing tenants in Irish society. It is not a return to a free for all.

The reforms were informed by a review by the Housing Agency, which did an analysis of the rental market for us, in particular of the rent pressure zones. The agency made recommendations on which we followed through on. All of the House wanted us to follow through on the Housing Commission's recommendations. It is in that context that the Housing Agency review followed through on them. There is a national cap now of 2% on existing rents. I do not know how one can go up by 50% but Deputy Stanley can forward me the details of that case. The rent tax credit has been continued. We will deal with that in the forthcoming budget also. We have provided a range of measures to ensure security for renters. I will not go through the full list of those.

This year alone, on top of the Estimate for 2025, we have allocated a further €1 billion to the housing budget. Approximately €7.5 billion will have been spent on housing by the end of 2025. That is a very significant State intervention. We need more private sector investment in the rental market, in particular to build new apartments. We have taken measures, not just in the RPZs but also with apartment standards and other issues to attract further investment in on the private side to balance the State investment.

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Verona Murphy An Ceann Comhairle Independent

I thank the Taoiseach.

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We are going to continue with that agenda.

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The concern I have is what is going to happen in towns like Mountmellick, Abbeyleix, Mountrath and Portlaoise.

In terms of increasing supply, the Taoiseach was in government in 2004, 2005 and 2006 when supply increased. In fact, 96,000 housing units were built in 2006. He will recall in those years that rents skyrocketed. There is not necessarily a correlation with increasing the supply of housing.

The evidence is there to show that. The Taoiseach will remember that, as do I. In relation to vacant possessions and evictions, there will not be a need for evictions and no-fault evictions as they are banned. However, there will be fault evictions because people will not be able to pay the rent. That is what I am being told. The Residential Tenancies Board, RTB, report shows that. Regarding supply, there was an increase of 45,000 tenancies in the six years leading up to 2023 but the Taoiseach will have noted from the report yesterday that, despite the Government's strategy, the number of planning permissions granted have fallen. Does he recognise that workers and families are under enormous pressure?

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Verona Murphy An Ceann Comhairle Independent

Thank you, Deputy.

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Will he halt his plans and do something to save tenants from March? People leave tenancies for different reasons and-----

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Verona Murphy An Ceann Comhairle Independent

Deputy Stanley, you have made your point. Thank you.

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-----when properties become vacant, they are faced with a free-for-all. The Government's 2% rent increase cap is irrelevant. It is on paper. Landlords will completely ignore. They can because the legislation says they can ignore it.

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Verona Murphy An Ceann Comhairle Independent

Thank you, Deputy. Taoiseach.

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No, I disagree with that.

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That is what the Government's legislation says.

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The Deputy mentioned the correlation between supply and price. Is he suggesting-----

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The Government left us with a free-for-all.

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Verona Murphy An Ceann Comhairle Independent

Deputy Stanley, you were not interrupted. Allow the Taoiseach to speak.

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In terms of supply and its relationship with pricing, I will tell the Deputy one thing for certain: if we do not substantially increase supply, rents will go through the roof.

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They are already going through the roof.

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The scarcity involved will increase the cost of any new tenancies that come along.

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I take it we are all agreed with more supply. That is a fundamental.

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It is more than supply.

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It is not Deputy Hearne's turn. His party had its turn. Are we agreed that we need more supply?

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Yes, but we-----

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Second, we have very comprehensive and significant protections in place for tenants. Yes, the RTB has a function, obligation and role to enforce and ensure the protection of tenants in these scenarios and that fairness applies on all sides in respect of tenancies. Deputy Stanley referenced that we have brought in those kind of protections around evictions and so on. With the measures we have so far taken, and hopefully with some further measures, we will be in a position to get greater traction in building apartments, which we need to get done.

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