Opposition calls on Government to stop 'dithering' and bring in three-year rent freeze

The latest quarterly report from property website Daft.ie found that a major lack of supply has led to national rental prices being 5.6% higher than this time last year, the strongest quarterly rise since mid-2019. File photo

Opposition politicians have called for urgent action, including a three-year ban on rent increases, to tackle rising prices.

The latest quarterly report from property website Daft.ie found that a major lack of supply has led to national rental prices being 5.6% higher than this time last year, the strongest quarterly rise since mid-2019.

Sinn Féin housing spokesperson Eoin Ó Broin said that the report had shown deep weaknesses in the system and called for a rent freeze for three years. He said that a freeze would not take money from landlords.

"Rents are higher than they have ever been. Higher than at the peak of the Celtic Tiger.

"So, if anybody is seriously telling me that a landlord entering the rental market now can't make a reasonable return with rents where they are, (they) just don't understand the dynamics of the rental market."

Mr Ó Broin said that the number of smaller landlords leaving the rental market could see a dramatic rise in family homelessness in the coming months. He said that more needed to be done to stop the sale of homes which already have tenants in place.

"Crucially, one of the big concerns we have is, in the last quarter, data from the Residential Tenancies Board (RTB) shows that the number of vacant possession notices to quit, of landlords selling properties, has dramatically increased — it's now exceeding pre-Covid levels.

"What does that mean? That means the single largest cause of family homelessness before the pandemic is returning again.

"As those notices to quit are worked through the system, we're likely to see an increase in family homelessness and children, as reported in the papers today."

Social Democrats Housing Spokesperson Cian O’Callaghan said that the Government was "dithering" and failing to tackle the housing and rental crises.

“The report reveals the abject failure of this government to tackle the rental crisis.

“The unprecedented nature of this crisis is evident in the fact that it is now cheaper to repay a mortgage than pay rent in nearly every region of the country. In fact, the only two places where a mortgage for a three-bed home is more expensive than rent is in Dublin 4 and Dublin 6.

“Taoiseach Micheál Martin has said housing is this government’s number one priority. Despite this, after more than a year in government, we have yet to see Housing Minister Darragh O'Brien's housing plan. 

"Last month it was announced that the publication of Housing For All was being delayed until at least the end of this month. While the Minister dithers, the crisis deepens."

Labour housing spokesperson Rebecca Moynihan said that rents are "likely to continue to rise until the minister intervenes and rebalances the rights of renters in the housing market".

“There should be proper security of tenure for renters who are long term in their home, including that if a landlord is selling their property, then the renter transfers with the sale. Renters need a break and Government needs to realise that people are renting homes, not investment opportunities.

“The news reported today that landlords are selling properties effectively represents a breach of the eviction ban due to Covid restrictions. We had always warned that there would be a flooding of evictions once this ban was lifted due to the dearth of rights afforded to renters in Ireland. 

"There is a clear and obvious need to improve the situation for renters in Ireland. Renters aren’t transient people who should be forced to accept sub-par accommodation just because they choose to, or cannot afford but to, rent."

The average monthly rent stood at €1,477 in the second quarter of 2021, up 2.4% on the first quarter and almost 99% up from a low of €742 per month seen in late 2011.

The average rent in Dublin is €2,035 per month, followed by Cork city at €1,524 and Galway City at €1,443.

Cities outside Dublin have seen significant price spikes.