‘Thousand families to lose homes by year end’

Housing charity Threshold has warned TDs and senators that over 1,000 families face being homeless by Christmas unless the Government introduces rent certainty to ease the housing crisis.

The agency has also dismissed claims property investors will flee Ireland if rent certainty comes into force, saying such fears were unfounded when rent regulations came into force a decade ago.

In correspondence obtained by the Irish Examiner, the agency has asked Oireachtas members to support plans for rent certainty, which is being proposed by Environment Minister Alan Kelly.

Mr Kelly held talks with Finance Minister Michael Noonan and his officials yesterday over the housing shortage, which both sides described as “constructive”.

While Mr Kelly wants rent increases tied to inflation for several years, Mr Noonan is against introducing restrictions in the property market. A package on increasing housing supply and addressing soaring rents is now expected to be agreed this week before going to Cabinet next week.

Threshold chief executive Bob Jordan wrote to TDs last week warning that the agency now estimates that up to 70 families a month are becoming homeless.

“Families facing homelessness today cannot wait for future housing supply, they need immediate help. Rent certainty measures that link future rent increases to inflation is the only effective way to stem the current crisis.

“The main cause is the gap between rising rents and income (either rent supplement or lower-paid work). Based on Threshold’s frontline experience, we believe that over 1,000 families will be homeless by Christmas. This is too high a price to pay for failing to introduce rent certainty.”

In the letter, co-signed by charity chairperson and Labour senator Aideen Hayden, the agency advises politicians that rent certainty is not the same as rent control, which it notes was deemed unconstitutional in the 1980s.

The charity points out that rent certainty is the norm in most developed European countries.

“Rent certainty is about regulating the rate of rent increases, recognising that landlords are entitled to increase their rent and to make a profit. But rent certainty also recognises that no family should face an exorbitant rent increase that makes them homeless.”

As revealed by the Irish Examiner this week, property investors have warned investment here could be “eliminated” if rent control is introduced. Global real estate group Kennedy Wilson warned Mr Noonan by letter, claiming “misbehaving” tenants would take advantage of rent-controlled units and sub-let their apartments.

But Threshold has told TDs that such fears are not realistic: “Rent certainty will not impact on government strategies to promote new supply. Such fears proved to be completely unfounded when rented sector regulations were introduced over a decade ago and this will also be the case with rent certainty.”

Meanwhile, sources close to Mr Kelly and Mr Noonan now say an agreement on a package on housing could be hammered out by next week.