Calls for rent freeze amid fears of 8% price hike in July

It is claimed tenants living in rent pressure zones could face hikes of up to 8% when the current freeze expires on July 13.

Paul Murphy says rent is already very expensive for a lot of people.

Calls have been made for an immediate rent freeze amid fears that city centre rents will rise by 8% in July.

The issue was raised in the Dáil on Thursday by People Before Profit TD Paul Murphy, who pointed out the emergency rent freeze implemented last year would lapse in July. 

However, landlords in rent pressure zones (RPZs), who can add up to 4% a year to rents, will be able to impose two years worth of increases when it does.

Mr Murphy said he has already been contacted by a woman whose rent was due to rise 7%, a figure she "simply cannot afford".

Mr Murphy added: "The point about rents being unaffordable applies pandemic or a no pandemic.

"It's obviously exacerbated with the pandemic and the levels of unemployment that we currently have are likely to continue after medically a pandemic has fizzled out.

"But even without those levels of unemployment, rent is not affordable for very, very many people."

Tánaiste Leo Varadkar said on Friday morning he didn't envisage the upper figure being used across the board.

"An 8% increase, for anyone, is a very big increase in any one year. I admit to not being aware of that, so I will certainly talk to the minister about that," he said. 

Housing Minister Darragh O'Brien has said the RPZ system will not be extended when it expires this year and will be replaced with broader protections in legislation he will bring this autumn.

Opposition politicians say this will be too late and have called for action now. 

An 8% rent increase would amount to an average of €100 a month, and €140 for renters in Dublin, Mr Murphy said.

He called for emergency legislation from the Government to prevent this "double rent hike" in July and said if the Government doesn't act, People Before Profit will.

“We cannot allow this double rent hike in July. Emergency legislation is needed next month to prevent this," Mr Murphy said. 

"If Tánaiste Varadkar is to be believed when he says this was not the Government's intention when they left this loophole in the law, then they should bring legislation now to prevent it. If the Government doesn't introduce legislation, People Before Profit will, and what’s more, we will make this a major issue in the Dublin Bay South by-election.”

Labour housing spokeswoman Rebecca Moynihan said an immediate rent freeze would stop the "double hike".

“Government need to immediately intervene and halt this double hike. Renters need a break. We need a rent freeze applied immediately until there’s enough houses built to catch up with the demand that is out there. 

"Landlords cannot benefit to the tune of an 8% increase at a time when renters have experienced massive uncertainty due to the impact of the pandemic."

Solidarity TD Mick Barry said the increase would be over €100 in Cork City.