Taoiseach told of Laois couple's 50% rent hike

A couple with kids in Laois were informed their rent was increasing by 50 percent just before a rent cap was introduced. 

The case was highlighted in the Dáil by Laois TD Brian Stanley who said rents are “skyrocketing” in Laois.  

“In a lot of areas now, average rents are more than €2,000. Recent reports have shown how they are skyrocketing. The recent Residential Tenancies Board rent index showed an average annual rent increase of 5.5%. In County Laois, it is more than 10%. In eight successive quarters, there have been significant increases in the county,” Dep Stanley said.  

He said the increases are putting families under significant financial pressure.

“As an example of that, I raise the case of Alan and Denise. They are just over the limit for social housing, and they have children. He is a retained firefighter. They have been in private rented accommodation for nine years. Four months ago, the landlord told them the rent was increasing by 50% - a 50% increase in south Laois. He did that in the first week of June. Of course, he knew what he was doing because on 20 June, the 2% cap came in, so a lot of landlords got in early," said Dep Stanley. 

"Their income is less than €40,000 a year. They have no way forward. Alan is 49 years of age. They have no access to social housing because they are over the limit for social housing. They have no access to cost rentals because they do not yet exist in Laois,” said Deputy Stanley. 

He pointed out that there are no affordable homes and in any case they couldn't get an affordable housing loan.

“In the case of Darren, a single man with one child, he has moved from one rent pressure zone to another. He is on €460 a week. He needs a car for work. He pays maintenance. He has a child. He is paying €77 in HAP rent, and he is paying €120 a week top up rent to a landlord. Some workers are paying more than half their income in rent. I do not know if the Taoiseach knows that or not,” said Dep Stanley. 

He said “vacant possession and evictions are easy because the grounds in the legislation allow for that - if the landlord is facing hardship, if they require a property for a family member or, God forbid, if they are going to renovate the place. A coat of magnolia paint would even ensure vacant possession." 

Dep Stanley called on the Taoiseach to address the situation and halt what Dep Stanley said were plans for “the introduction of a complete free-for-all in March for new tenancies?” 

Taoiseach Micheal Martin said  “We are not creating a free-for-all in terms of the rental market more generally. We are creating a national rent pressure zone, ultimately including the entire country. The bottom line is that we need more supply of houses. We need a significant and substantial increase in the supply of housing. That is the key. Without additional supply we will have a very challenging rental market."

He said "the Deputy indicated a case of 50%, which sounds illegal to me. I do not know whether or not the landlord is registered with the RTB. I do not have the specifics of the case but Deputy Stanley can forward them to us afterwards.”

The Taoiseach said  “the reforms we announced on 10 June will strengthen the rights of new and existing tenants in Irish society. It is not a return to a free for all.”

“There is a national cap now of 2% on existing rents. I do not know how one can go up by 50% but Deputy Stanley can forward me the details of that case. The rent tax credit has been continued. We will deal with that in the forthcoming budget also,” Mr Martin said. 

Mr Martin said “we need more private sector investment in the rental market, in particular to build new apartments. We have taken measures, not just in the RPZs but also with apartment standards and other issues to attract further investment in on the private side to balance the State investment.” 

Dep Stanley said “the Government's 2% rent increase cap is irrelevant. It is on paper. Landlords will completely ignore. They can because the legislation says they can ignore it.”

Mr Martin said he disagreed with Dep Stanley on that point. “In terms of supply and its relationship with pricing, I will tell the Deputy one thing for certain: if we do not substantially increase supply, rents will go through the roof,” he added.

Deputy Rory Hearne said rents were already going through the roof.