The State has a big role in housing but Ireland also needs private investment to increase housing stock, Minister for Public Expenditure Jack Chambers has insisted.
He told the Dáil that a review underway of rent pressure zones (RPZs) has no “pre-determined outcome”.
Housing dominated leaders’ questions as the Opposition claimed that ending rent pressure zones (RPZs) will lead to increased homelessness.
TDs sharply criticised the Government, claiming it had “conned” the electorate, in the wake of comments by Taoiseach Micheál Martin about the possible development of an alternative system to RPZs that would protect renters but provide a stable environment for investors.
Mr Ó Broin claimed the Government is living in ‘cloud cuckoo land’ as he pointed to consistent lobbying by developers for an end to rent pressure zones
Sinn Féin spokesman Eoin Ó Broin highlighted the impact of the Taoiseach’s comments on renters as he cited numerous emails he had received.
One woman (70) with a daughter with special needs said that existing rent controls limiting increases to 2 per cent were keeping her out of homelessness, and that her rent of €1,477 would rise to €2,700 without them.
Another said that ending RPZs “will drive up rents and make thousands of people homeless”.
Mr Ó Broin said there was nothing in the Programme for Government about ending the RPZs, but the Taoiseach had “suggested just that”.
But Mr Chambers said they should look at all “approaches and models”. RPZs had been introduced in 2016 and are due to end this year.
The Housing Agency is reviewing RPZs and will report to the Department of Housing by the end of March. Mr Chambers insisted the Government is committed to providing more housing to people.
“There is no pre-determined outcome to this review,” he insisted.
Mr Ó Broin claimed the Government is living in “cloud cuckoo land” as he pointed to consistent lobbying by developers for an end to RPZs.
The Minister said: “We need to ensure that the system is fit for purpose, that it protects tenants but that it does not deter landlords. Without landlords and investors, there isn’t a private rental market.”
Ms Bacik said that ‘renters are bracing themselves, facing the fear that their monthly bills will further skyrocket’
Labour leader Ivana Bacik said the Government was going to “repeat the mistakes of the past”, as she pointed to ESRI research that showed increasing tax breaks for investors does not increase the delivery of housing.
She said that the Taoiseach “has warned your TDs to brace themselves for a raft of unpopular decisions on housing”, but that “renters are bracing themselves, facing the fear that their monthly bills will further skyrocket”.
Her party’s private member’s motion on Wednesday would provide “clear, evidence-based policies” for a “radical” reset to help the country escape a housing “catastrophe”, she said.
But Mr Chambers dismissed Labour’s plan for a State construction company, which he said would take years to establish, and criticised the party for pulling out of government formation talks.
He said it was not true “to say we missed our housing for all targets”. Looking at the overall net position over a three-year period, they “exceeded the overall target over three years”, he said.
But Social Democrats housing spokesman Cian O’Callaghan claimed the Government had used “dodgy data” after the Minister said there were 60,000 commencement notices for 2024.
Mr O’Callaghan said the Government talked about 40,000 homes completed last year and had now said that work commenced on 60,000 homes in 2024. “That’s using the same dodgy data, based from commencement notices filed and housing sites lying idle, which has been happening all around the country.”
He said that Property Investment Ireland, the lobby group for investment funds, stated that the commencement notices would not lead to 60,000 completed units.
Mr Chambers said the State’s role in the provision of housing supply is “absolutely central”. But he added: “We’re being honest with people. If we want to reach between 50,000 and 60,000 homes per year, we need to make sure Ireland is an attractive place for private investment as well.”
He said that had weakened in recent years and, criticising Mr O’Callaghan, he said: “It won’t improve with you attacking private investors.”
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