Brian Stanley warns of rental 'free-for-all' as rents skyrocket

Thanks John Corley and can I join as well in welcoming Deputy Holly Cairns back to the Dáil. Congratulations Holly and congratulations also to Deputy Hemer Higgins. Life will never be the same again. Many years of happiness and joy to yourselves and your partners in the years to come. The issue I'm raising which is the situation regarding renters, the out of control rental market, so-called rental market that we have. Average rents in a lot of areas now are over €3,000. Recent reports have shown how they're skyrocketing. The recent Residential Tenancy Board showed an average annual rent increase of 5.5%. In counties leashed that's over 10% Taoiseach. There's been eight successive quarters in a row where there have been significant increases in the county. Families and workers are under significant pressure. Notices to quit are on the increase. Increasing numbers of them from rack renting landlords who are getting vacant possession because they're getting ready for next March when there will be effectively no rent controls on new tenancies and no new bills. Some landlords are telling tenants that regardless of whether there's a new tenancy or not, rents will go up. So it's a free for all. And as examples for that, I want to raise with you the case of Alan and Denise. Alan and Denise are just over the limit for social housing and of children. He's a retained firefighter. They're in private rented accommodation for nine years. Four months ago, the landlord told them the rent was going up by 50%. 50% increase in South Leash. He had done that the first week in June. But of course he knew what he was doing because on the 20th of 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. He's 49 years of age. They have no access to social housing because they're over the limit for social housing. They have no access to cost rentals because they don't exist yet in Leash. And there is no affordables. And he won't get an affordable housing loan in any case. The case of Darren, a single man with one child. He's moved from one rent pressure zone to another. He's on 460 a week. He needs a car for work. He pays maintenance. He has a child. He's paying 77 in half rent. And he's paying 120 euros a week rent to a landlord. Some workers, Taoiseach, are paying half and more than half their income in rent. I don't know if you know that or not. But vacant possession and evictions are easy. Because the grounds in your legislation show that if the landlord is facing hardship, if they're required for a family member or, God forbid, if they're going to renovate the place, you know, a coat of magnolia paint will even do it to get vacant possession. So the question is, do you recognise that workers and families are under enormous pressure of renting? And we're coming up to a budget time. And I want you to address this. It's way beyond what people can afford. Will you halt your plans for March to introduce, you know, a complete free-for-all in relation to new tenancies? And will the government ramp up the supply of cost rental and affordable housing to purchase? Thank you, Deputy Stanley. Tisha. First of all, Deputy, in terms of the rental market more generally, we're not creating a free-for-all. Absolutely not. We're creating a national rent pressure zone, ultimately the entire country. But the bottom line is we need more supply of houses. And we significantly need a substantial increase in the supply of housing. That's the key in my view. Because without additional supply, we are going to have a very challenging rental market. You did indicate a case of 50%. That sounds illegal to me. And I don't know whether the landlord is registered with the RTB or not. But I don't have the specifics of the case. But you can forward it to us afterwards. But the bottom line is that we have, as you know, reformed the RPZs. And 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. But we've done it in a way which continues to protect tenants. And there's very substantial protections that have gone in for tenants over the last five years, compared to what was there before. And that has to be acknowledged. And I do accept fully that costs are high. And that's why we brought in the rent tax credit to be of assistance to renters in terms of meeting the increases and meeting the cost of renting itself. And the reforms that we announced on the 10th of June will strengthen the rights of new and existing tenants in Irish society. So it's not a return to a free for all. They were informed by the Housing Agency Review who did an analysis of the rental market for us, in particular the rent pressure zones. And it made recommendations which we followed through on. And all of the House wanted us to follow through on the Housing Commission's recommendations, which were – and it's in that context the Housing Agency Review, followed through on that. And so there's a national cap now of 2% on existing rents and so forth. So I don't know if someone can go up by 50%, but we'll see if you can forward me the details of that. And as I said, we have the rent tax credit has been continued. And again, we deal with that in the forthcoming budget also. And then we've provided a range of measures in terms of security for renters and in terms of – and there's a full list of those which I will not go through. But fundamentally – and even this year alone, on top of the estimate for 2025, we've allocated a further £1 billion to the Housing estimate, we're up to about £7.5 billion. By the end of 2025, we'll have been spent on housing. That is a huge State intervention, very significant. We do need more private sector investment in the rental market and particularly in building new apartments. And we've taken measures, not just on the RPZs, but also in terms of the apartments. Thank you, Taoiseach. And there's another issue to attract further investment in on the private side to balance the State investment. Thank you, Taoiseach. And we're going to continue with that agenda. Deputy Stanley. Thanks, Taoiseach. The concern that I have is that what's going to happen in towns like Mount Melik, Abbey Leaks, Mount Trat, Port Leash and towns like that. And could I just say to you about increasing supply? You were in government in 2004, 5 and 6 when supply increased. In fact, 96,000 were built in 2006. And you will recall in those years that rents skyrocketed. So there's not necessarily a correlation between an increase in supply and an increase in the supply of housing. Let's get that. The evidence is there to show that. And you will remember that. So do I. So what I'm asking you is this, is that in relation to vacant possessions and evictions, there won't be a need for evictions and no-fault evictions. They're banned. I get that. But there will be fault evictions because people will not be able to pay rent. And that's what they're telling me. The RTB report shows that. In relation to supply, there was an increase of 45,000 tenancies in the six years up to 2023. But you will have noted yesterday, despite your strategy, that the number of planning permissions have actually fallen. You will note that from the report yesterday. So do you recognise that workers and families are under enormous pressure? Will you halt your plans and do something to save tenants for March? Because I'm telling you this, that people leave tenancies for different reasons. And when they become vacant, they are faced with a free-for-all. Your two percent is irrelevant. It's on paper. And landlords will completely ignore that. And they can't ignore it because your legislation says they can't ignore it. Thank you, Deputy. Thank you, Taoiseach. No, I disagree with that, Deputy. And you mentioned the correlation between supply and price. I'll tell you one thing for certain. If we don't substantially increase supply, rents will go through. The scarcity involved will increase in any new tendencies that come along. Please, please. So the bottom line, like, let's not... I take it we're all agreed with more supply. And that's a fundamental... Look, it's not your turn, Deputy. Your party had your turn. Are we agreed on that? We need more supply. No, okay. Secondly, we have very comprehensive and significant protections there for tenants. Yes, the RTB has a function and an obligation and a role to enforce and ensure the protection of tenants in these scenarios. And that fairness applies on all sides in respect of tenancies. And you've referenced it yourself in terms of addictions and so on like that, that, you know, we have brought in those kind of protections. Thank you. And I think we're going to, you know, I think with the measures that we've taken so far, and hopefully with some further measures, that we will be in a position to get greater traction in terms of building apartments. Thank you, Taoiseach. Time is up and now we move. I believe. I believe this is a part of your application and I can see what were that rules such as we haven't figured out��� one through two reports, so that, you know, I think there's a way to move