Rent caps for new tenancies to be eased under Govt plan
Rent caps for new tenancies are to be eased as part of a plan expected to go to Cabinet next week.
The Government looks set to change the current Rent Pressure Zones (RPZs) in a move that has already been strongly criticised by opposition parties.
Intensive discussions have taken place on this politically sensitive issue between the Taoiseach, the Tánaiste and a number of ministers.
Further talks are set to take place on Monday night in advance of the Cabinet meeting on Tuesday morning.
The current legislation on RPZs caps annual rent increases at 2%, or at the rate of inflation, whichever is lower.
However, it will lapse at the end of December and the Government is now likely to begin preparing new legislation which will change the present system.
The changes being considered are being described as a twin-track approach.
Existing tenancies within RPZs will mostly remain the same.
However, new tenancies will be covered by fewer restrictions but there is a pledge to provide stronger protections for renters, in what is viewed as a trade off.
This will, the Government believes, “give certainty to the market”.
The Taoiseach has consistently stated that a stable climate has to be created to incentivise developers to invest in the domestic rental market.
Senior figures in the coalition believe that “doing nothing” is not an option and if the RPZ legislation is allowed to lapse, then it would be a return to market rents for tenants.
To avoid this, new legislation will be brought before the Oireachtas.
The Housing Commission last year recommended “reference rents” which would tie rates to local homes of a similar quality, but this is not thought to be under consideration by Government.
However, opposition parties have warned that any move to abolish the “modest protections” provided by the RPZs will be strongly resisted.
Sinn Féin Leader Mary Lou McDonald said this evening that renters are now going to be asked to pick up the tab for the Government’s failures.
Article Source – Rent caps for new tenancies to be eased under Govt plan – RTE