Housing Minister vows to put cap on rent increases and insists Government’s ambitious housing plan will work
IRELAND is currently in the midst of a rental crisis with prices soaring and properties few and far between.
Tenants are now paying an average of €1,820 per month in Dublin and €1,320 outside the capital following a seven per cent hike in a year.
The Government launched its long-awaited Housing for All plan earlier this month aimed at tackling the housing issue. The multi-billion euro housing strategy — which guaranteed spending for the next five years — aims to deliver 300,000 homes by 2030.
Writing in the Irish Sun, Housing Minister Darragh O’Brien vows to put a cap on rent increases and insists the Government’s ambitious housing plan will work.
QUALITY OF RENTALS
SECURE, long term, high quality rental accommodation shouldn’t be something which people can only dream of.
Many tenants I speak to tell me of their fear of speaking up about an issue in the home in case their landlord remembers they exist and instigates a rent review.
Others speak of the trouble they have securing a place to rent in the first place. Some say they’re afraid to hang a picture in case they lose their deposit. Others speak of eight house moves in as many years.
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Most of these people are ‘trapped’ — above the social housing income limits but unable to buy their own home.
At this time of year I am also hearing from a lot of students, from their parents and from their student council representatives.
In some parts of the country the housing crisis is impinging on their education and that’s not OK.
We want to give renters a break and that’s why in the recently announced ‘Housing for All’ we set out our plan to build a new rental system with fair rent and certainty for tenants at its heart.
RENT RESTRICTIONS
The measures we are introducing include indefinite tenures and minimum BER ratings in private rental accommodation.
We will introduce new short-term letting regulations through a Fáilte Ireland registration system, meaning more rental properties in the long-term rental market.
We have restricted any upfront payment upon the commencement of a tenancy to a total value that does not exceed two months’ rent — ie. a deposit and one month rent in advance.
This restriction applies to all tenancies including for students residing in student specific accommodation. The notice period to be given by students in respect of student specific accommodation is also now limited to a maximum 28 days’ notice.
Crucially, we have extended rent pressure zones and linked rents to general inflation — putting an end to the annual four per cent rent increases which we were seeing.
At the time of introducing this legislation, which we did so expeditiously, I acknowledged inflation was rising and said that I would keep the need for an overall cap under review.
'HOUSING FOR ALL'
As part of rent reform legislation due to be brought before the Oireachtas this session, we will introduce a cap so that rents in RPZs will only go up, if necessary, in line with general inflation as recorded in the Harmonised Index of Consumer Prices to a maximum cap which will be determined in conjunction with the Attorney General and the advice from my own Department.
One of the cornerstones of ‘Housing for All’ is the introduction of a new form of tenure — Cost Rental. Between now and 2030 we will deliver 18,000 cost rental homes, which means tenants pay the cost of delivering, maintaining and managing the homes only, targeted at a minimum 25 per cent below market rates.
We did not wait for the plan to be launched to get moving on this and already the first 25 Cost Rental homes have been delivered at Taylors Hill in Balbriggan, north Co Dublin, by Clúid.
Some of these homes have been delivered at a 50 per cent reduction of open market rates.
NEW PROPERTIES
They are soon to be followed by the delivery of 50 new apartments at Enniskerry Road, Stepaside, south Co Dublin, by Tuath and Respond where two-bedroom apartments will be let at a monthly rent of €1,200, a significant reduction when compared to market rents for two-bedroom apartments in this location.
Over the past year we introduced five significant pieces of rental protection legislation. The first Cost Rental tenants are now in their new homes.
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We are changing the rental system by bringing in Statebacked, secure, below-market rents for working people.
We have a multi-annual plan, backed up by the biggest ever housing budget and determination to significantly scale up and reach our ambitious targets. We will get there.
