Cap on private rents is ruled out
A cap on rents for private accommodation has been ruled out by the environment minister due to “substantial” legal concerns and the possibility of landlords taking a constitutional challenge.
Despite a surge in rents in Dublin, and smaller rises elsewhere, Alan Kelly said a rent freeze was out of the question in the near future but indicated other options were being considered.
In an interview with the Irish Examiner, the deputy Labour leader also said his party was “coming back” and may make a voting pact with Fine Gael going into the next election.
On the rent freeze issue, he said: “In the shorter term, it’s not an action I foresee. When you sit in this office, you have to be realistic, you have to manage expectations.
“From my research and looking at it, there would be substantial legal concerns in relation to constitutional issues about a rent freeze. We have a lot of legal advice here and are also getting more.”
Kelly referred to a 1982 ruling where the Supreme Court struck down rent control legislation which appeared to undermine landlords’ constitutional rights.
Despite rent caps operating in other EU countries such as France and Germany, Kelly they do not have the same constitution as Ireland. “If we were going to go down that road, I’d absolutely have to be secure legally that it is the right thing to do,” he said.
According to a recent Daft.ie survey, rents in Dublin rose by 15% year-on-year, 7.4% in Cork City, 6.7% in Galway, 6.3% in Limerick, and 2.8% in Waterford.
Kelly will this week receive a report with recommendations from the Private Residential Tenancies Board on how to address concerns in the private rental sector.
He said a number of measures, such as security of tenure, the role of landlords and the handling of deposits were all being considered.
Voted deputy leader before the summer, Kelly said there was a real change as to how Labour was being received by the public.
He said reports of a tense relationship between himself and party leader Joan Burton were “rubbish”.
“We have a great relationship. It’s a very cosy relationship.”
While the Tipperary North TD has only been in the Dáil three years, many in Labour see him as a fighting force for the party. His experience as an MEP, senator, councillor, as well as being in business, is viewed as lending him authority within Labour.
Party support collapsed to 7% in the local elections but Kelly noted recent polls, with Labour up one or two percentage points since then, have been encouraging.
“The polls are showing the Labour party are coming back,” he said. “Have we gone through a rough time? Absolutely. The Labour party sacrificed itself to ensure this country would turn around.”
As deputy leader, Kelly is reorganising the party and choosing local area representatives to run in the next general election.
“We’ve been probably one of the most important and successful governments in the history of this State in turning this country around,” he said.
“I don’t believe the people of this country ultimately are going to start rewarding people who got us into the mess and take it out on those who saved the country.”
Asked whether Labour and Fine Gael would have a joint platform going into a general election, he responded: “I think Labour will run independently but I do think it would be strange that, as an outgoing government, we didn’t have some form of communication or commentary that we supported one another in our second preferences.”
