‘Rent certainty’ dispute drags on within Fine Gael

The Coalition ‘rent certainty’ row shows no signs of calming after Fine Gael figures said Taoiseach Enda Kenny is not planning a meeting with Environment Minister Alan Kelly to negotiate a truce and dismissed any cap on prices out of hand.

Despite weekend reports suggesting Labour’s deputy leader may water down his plan to link rent prices to the consumer price index from four years to two to win over the coalition partner, Fine Gael is thought to still hold that the potential policy should not play any part in addressing the market crisis.

In measures repeatedly outlined for more than a year, Mr Kelly wants to impose a system whereby landlords cannot ramp up rents by linking any increases to the consumer price index.

Mr Kelly had intended to agree a package with Finance Minister Michael Noonan before last week’s budget in a bid to address the rental bubble problem and the homelessness crisis.

However, despite negotiations continuing until 24 hours before the budget was formally revealed last Tuesday, he was unable to convince his Coalition colleague of the merits of the plan.

While both ministers are continuing to publicly say they are working towards an extensive housing policy document expected within the next three weeks — a position likely to be repeated when the duo take part in a media event in Limerick later today — privately there has been no progress on any form of rent certainty, despite the measure being widely backed by voters.

Labour officials yesterday said talks will continue on the matter, with Taoiseach Enda Kenny expected to meet Mr Kelly after Tuesday’s cabinet briefing as rent certainty remains a possibility.

However, Fine Gael sources last night denied any meeting between Mr Kenny and Mr Kelly is planned, and dismissed linking rent prices to the consumer price index in favour of tax incentives for landlords to take in social tenants and other matters Fine Gael believes will not negatively impact on the market.

At a post-budget media briefing last week alongside Mr Noonan, Labour’s Public Expenditure and Reform Minister Brendan Howlin twice failed to say he continues to support rent certainty and instead referenced the need to address longer-term housing supply issues — a point consistently raised by Fine Gael.