Government to block three-year rent freeze despite support from TDs
THE Government is likely to kill-off a proposed three-year rent freeze – despite it being backed by the majority of TDs.
Fianna Fáil has backed a Sinn Féin bill that proposes an immediate rent freeze on all existing and new tenancies other than those on social housing supports for three years, meaning it will pass a Dáil vote tomorrow.
Sinn Féin is also proposing a refundable tax credit of up to €1,500 per year for renters. But the Government believes this element of the bill will cost the State at least €100m per year, meaning it will require a money message from the Taoiseach. Government sources said he was unlikely to sign one given the Government’s trenchant opposition to the bill, which was debated in the Dáil last night.
The Government believes a freeze on rents will drive landlords out of the market and the bill could ultimately be deemed unconstitutional by the courts.
Fianna Fáil has also said it will demand tax reliefs for small landlords in return for supporting rent freezes eventually becoming law.
While supporting the bill at second stage, the party’s housing spokesman Darragh O’Brien said his party will seek amendments at committee stage to protect so-called ‘mom and pop’ landlords and accidental landlords who typically own one property.
Measures it will seek include maintaining mortgage interest relief for landlords as well as introducing tax reliefs for local property tax payments, refurbishment costs and any loss of rental income.
“I don’t see how you can bring a freeze in without looking at individual landlords in the market and accidental landlords as well. This isn’t a standalone solution as currently written,” Mr O’Brien said.
It also wants a risk analysis done to avoid any unintended consequences from freezes.
Sinn Féin housing spokesman Eoin Ó Broin said the Rent Freeze (Fair Rent) Bill 2019 would introduce “an emergency measure for three years first of all to give renters breathing space” and should be done in tandem with building more social and affordable housing. The Irish Property Owners Association said it would “devastate the market, reduce the amount of accommodation available and badly affect tenants and landlords”.