Budget 2020, Eoghan Murphy, Paschal Donohoe, Rent Pressure Zones, Renters, Rents, Rpz

Budget 2020, Eoghan Murphy

'Rent controls are working': Housing minister believes rate of rising rents will moderate

The minister said RPZ rules will never bring 4% rate rise across the board.

09/10/2019 20:41:00

'Rent controls are working': Housing minister believes rate of rising rents will moderate

The minister said RPZ rules will never bring 4% rate rise across the board.

Speaking at a press conference today, TheJournal.ie asked the minister why Budget 2020 did little for renters in Ireland at a time when the national average rent is now over €1,200 per month.The latest rent index report from the Residential Tenancies Board showed that from April to June 2019, the standardised national rent was €1,202 per month, that’s up from €1,123 one year earlier.

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While Finance and Public Expenditure Minister Paschal Donohoe said “the high cost of renting is a key concern for this government” the Budget contains little in terms of the rental sector.Budget 2020 does commit to almost €2 million in additional funding for the Residential Tenancies Board to “support their increased powers to investigate and sanction non-compliance with Rent Pressure Zone measures”.

There are now 44 RPZs in operation throughout Ireland.Rent Pressure Zone (RPZ) laws were first introduced in December 2016 by then-Housing Minister Simon Coveney in order to tackle spiralling rents.RPZs are located in areas of the country where rents are highest and where households have the greatest difficulty finding affordable accommodation.

Under RPZ legislation, annual rent rises are capped at 4% in certain areas.However, in July, new research from the RTB reported that two-in-five tenants in RPZs still face rates of increases above 4% despite caps.The research shows that there has been a moderation in price inflation of 2.5% to 3% per annum within the designated RPZ areas.

Putting money into RTBMurphy said today that he is “putting the money behind” the new Residental Tenancies legislation, to ensure that it can be enforced.He stated that “rent controls are working” however, he said the new laws need to be enforced. The minister stated that the Housing Department has “independent evidence” to show the controls are having an impact.

“And that’s what the money will do to help with the RTB,” he said, adding that as the laws are enforced, the rate at which rents are rising should moderate.In terms of rent inflation, “quarter to quarter, you seen that rate of increase moderate, and we think it will moderate further. But we have to recognise as well, that it’ll never come down to a pure 4%”.

The RTB report during the summer showed the share of properties whose annualised rental increase was greater than 4% dropped from 73.2% in quarter 4 of 2016 to 42.5% in quarter 3 of 2018 in RPZ areas.The report noted that, with the data available, it isn’t possible to determine whether this is due to non-compliance with the RPZ scheme or whether it is due to valid exemptions from the scheme, such as substantial renovations taking place.

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Murphy said he believed a percentage of 4% across the board will not be achieved due the increase in supply, “which does push the number above four percent”, he said.The minister stated that RTB data shows the difference in regulation between new tenancies and existing tenancies.

“Really it is inflation for existing tenancies that we need to be looking at, because they’re the ones that are under rent controls. Read more: TheJournal.ie »

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He’s so useless. 🙄 Ah that's fine so u muppett I actually can't criticise Eoghan Murphy anymore. It's unfair to discriminate against someone who clearly can't understand the function of what they are doing The only way to describe MurphyEoghan is that he is either the best fisherman ever who is taking the piss out of people while pissing himself laughing or that he is quite possibly the biggest clueless nonce this country has ever known

I believed he would be sacked last year but hey that’s belief for you. Sometimes it’s wishful thinking It should be scrapped. There not another industry in the country where the government tell you that you cannot get as much as possible for your product. And the state is still not building houses for needy Irish people. Plenty of money available to renovate hotels for immigrants. Murphy will be remembered as the Minister for no Housing.

Rent control is a tax on landlord caused by civil service and politicians not doing the right thing by simply getting more homes built .very easy to get done but the can’t work it out 👍👍 Average rents in my area have more than doubled in the past few years, but you do you. Is this click bait? Rent controls are NOT working.

It’s the way he tells them! The Minister is right. Rents will moderate but only if the status quo is maintained. If more and more legislation is passed as is the want of Threshold. Landlords will flee the market. The answer is to enforce the multiplicity of laws that are currently there, not introduce more

More spin But the housing minister is about as dumb as a bucket of shrimp You are a blatant liar Murphy, fg have stymied the rental market and until rents are reduced by a third, nothing is working. Common Sense: Rent controls NEVER work. EVER. Over the intermediate and long term, rent controls stifle housing supply, which increases selling prices, thereby reducing housing affordability. Ireland excels at creating and applying really stupid housing policy.

What an idiot can you even belive this guy theres a crisis and this is what he comes out with

Landlord ordered to pay Latvian renter €12,000 after refusing her rent allowanceA veteran landlord has been ordered to pay a renter €12,000 compensation after he was found to have refused her rent allowance because she is Latvian and relies on social welfare supports.

Landlord fined €12,000 for refusing to accept rent allowance from Latvian womanA veteran landlord has been ordered to pay a renter €12,000 compensation after he was found to have refused her rent allowance because she is Latvian and relies on social welfare supports. He was probably right That’s 100% what rent allowance is 🤦🏻‍♂️ This'll bring the racist accounts out of the woodwork for sure

Here's how the government plans to tackle homelessness, housing issues and high rentsFianna Fáil said the government’s response to the housing crisis has been “completely ineffective”. They're planning to tackle it? They have no plan on tackling the problem, utter nonsense to suggest otherwise

Landlord ordered to pay Latvian renter €12,000 after refusing her rent allowanceA veteran landlord has been ordered to pay a renter €12,000 compensation after he was found to have refused her rent allowance because she is Latvian and relies on social welfare supports.