Rising rents ‘are due to the Government’s complacency’

RENTS are rising because the Government has been complacent and has failed to introduce a single recommendation contained in a report on the housing crisis, Fianna Fáil has said.

The Department of Finance report, published in September, contained ten recommendations on easing the crisis, some aimed at the retention of landlords, whose numbers have plunged from 212,000 in 2012 to 175,000 at present.

Fianna Fáil leader Micheál Martin said it was ‘extraordinary’ that none of the recommendations had been implemented when rents have reached an all-time high, and he accused the Taoiseach of ‘not having a clue’ about the report having asked for time to read the report once more.

‘I will have to look at that report again. It was published some time ago,’ Leo Varadkar said when asked about the Tax and Fiscal Treatment of Rental Accommodation Providers.

But Deputy Martin responded: ‘It was published in September, not some time ago, as the Taoiseach says. Now he has to remind himself of it, he has to look at it again.

‘These were the measures designed to retain, and increase the supply of, landlords in the market and he does not have a clue about them, coming in here. That sums up the complacency around this issue of housing.’

Anger is again building over the Government’s handling of the crisis, with Mr Martin reminding the Dáil that there were ‘human stories’ behind the figures.

‘Many families are now doubling and tripling up, as we know from our clinics. There are people coming in who are living with their parents or siblings and so on,’ he said. ‘There are young people getting their first jobs in cities and 40% to 50% of their income is going on rent.’

A new Daft.ie report has highlighted how dire the situation has become, with rates increasing by 10.4% in 2017 despite the 4% rent-cap introduced under the Rebuilding Ireland programme for designated rent pressure zones such as Dublin.

The Taoiseach insisted the 4% rate was working and claimed the Daft.ie figures did not reflect tenants covered by the cap.

‘Most people who are renting have been protected by the rent pressure zones and face rent increases of less than 4% as a result of actions taken by this Government and Oireachtas.

‘The Daft figures do not cover people covered by the 4% cap in the rent pressure zones, people already in properties. They refer to new tenancies and properties and it is a relatively small sample,’ he claimed.

But an incredulous Deputy Martin responded: ‘I do not know whether the Taoiseach lives in the real world, because if he talks to any student or family he will learn that rents have gone through the roof.

‘That is what the Daft.ie report is telling us. There is no point trying to deny or obfuscate it or put a good spin on it.

‘The Taoiseach’s reply indicating lack of knowledge of this report sums it all up.’

And as Sinn Féin housing spokesman Eoin Ó Broin pointed out, joint reports by the ESRI and the Rental Tenancies Board last year had also shown increases of more than 4% in three consecutive quarters.

He said: ‘Renting in Dublin now costs on average, in excess of €20,000 a year, and renting outside of Dublin costs an average of at least €10,000 per year.

‘In quarter one of last year they increased by 7%; in quarter two of last year they increased by 6%; and in quarter three of last year they increased by 9%.

‘The data on all tenancies indicate that the 4% cap simply for the tenants covered by it, simply

‘He does not have a clue about them’ ‘Lack of supply is the problem’

does not work,’ he told the Dáil.

Ronan Lyons, Trinity College professor and author of the Daft. ie report, said it was clear that the Rent Pressure Zones were not working. He added that the problem of supply must be tackled before the issue could be resolved. ‘If you want to stop rents rising, don’t ban them from rising, tackle the underlying problem, which is a lack of supply,’ he said.

Mr Varadkar defended the rent caps saying they were relatively new and that it would take longer before being able to assess if they were working.