The opposition has claimed that a government Bill altering rent and tenancy regulations will be “devastating” for tenants and will cause rental prices to “soar”, reports Breaking News.
Sinn Féin, Labour, the Social Democrats and People Before Profit have alleged that the Government is trying to “ram” its rental reform legislation through the Dáil on Wednesday, reports Breaking News.
The Residential Tenancies Bill proposes the introduction of minimum six-year tenancies and, for the first time, the creation of a rental price register.
The legislation also revamps Rent Pressure Zones (RPZs), expanding a nationwide cap on rent increases for existing tenancies, limiting them to the rate of inflation or 2%, whichever is lower, reports Breaking News.
The planned six-year minimum tenancies, set to begin next month, have faced criticism over provisions that permit landlords to increase rents at the end of each six-year term.
The Bill is scheduled for debate in the Dáil on Wednesday evening, with a demonstration planned outside Leinster House at the same time, reports Breaking News.
During Leaders’ Questions, opposition figures argued that the Government was rushing the legislation through the parliamentary process.
Sinn Féin president Mary Lou McDonald said the Bill would “throw renters to the wolves” and described it as “devastating”, reports Breaking News.
“Previously in rent pressure zones, any increase was set at the rate of inflation or a 2% increase, whichever was the lower. But you’re tearing that up and you’re opening up the floodgates,” she said, reports Breaking News.
“From March 1, you will allow rent for new tenancies to be reset to full market rate, a hammer blow for ripped-off renters and a gift for big landlords and vulture funds,” she said, reports Breaking News.
She warned the measures would drive more young people to emigrate and force additional families into homelessness.
She added that six-year tenancy protections would not provide extra security for those who move often for study or employment, including students, apprentices, trainees, nurses and teachers, reports Breaking News.
“Up to 60,000 renters will be hit by a huge rent hike every single year. That’s the hard truth,” she said, reports Breaking News.
“The rent hikes will be off the charts – in Galway city, for example, renters will fork out 5,292 euros more per annum. Here in Dublin, it will be an extra 3,516 euros a year. In Cork city, in your own neck of the woods, an extra 3,336 euros a year. That’s on top of staggering rents already, reports Breaking News.
“Most tenancies don’t last six years. They average at three-and-a-half and 25% of tenancies every single year are brand new. Answer that,” she said, reports Breaking News.
Taoiseach Micheál Martin responded that the Housing Commission had advised reforming rent pressure zones, and that the Housing Agency subsequently proposed “the nature of the changes that the minister has introduced”, reports Breaking News.
“The six years gives a security of tenure that we never had in this country before, and aligns us more with European rental systems in terms of giving tenants greater security and greater protection,” he said.
Martin stated that the Government’s plans are opposed by landlords and property owners “who want to get rid of this” and are against its passage, reports Breaking News.
“The bottom line here – through the chair – is we need supply, and we do have to have a rental framework that facilitates investment, that facilitates greater supply of housing, and what you’re ignoring is a half-a-million people currently renting in Ireland today will not be impacted by these measures, because there’s a lot of protections built in here – a National Rent Protection zone is there at 2%, the ESRI (Economic and Social Research Institute) recommended 4% actually.
“So these are modest measures designed to get clarity, stability, but above all, to bring supply, reports Breaking News.
“Because if you don’t have supply, prices will rise without question, and you have never answered the question of supply,” he said.
Social Democrats leader Holly Cairns said the proposals would push monthly rents for new tenancies “soaring up to 2,500 and 3000 euro all over the country”, reports Breaking News.
“That is 30,000 euro or more every year in after-tax income that renters will be expected to pay,” she said, reports Breaking News.
Cairns said that although her party supported stronger protections for tenants and the introduction of a rent price register, these benefits would be “completely swallowed up” by sharp rent increases, reports Breaking News.
“This isn’t just a housing disaster, it is a social catastrophe,” she said, reports Breaking News.
Martin said: “The only effective way to moderate pricing in the rental market is to increase supply. The Government is biting the bullet, is taking action here,” reports Breaking News.
“The issue is, we do need private sector investment, which your party has a huge problem with. Social Democrats hate the private sector. You don’t believe it has any role in housing,” reports Breaking News.
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