Government rental reforms that remove rent controls and incentivize private sector investment in luxury built-to-rent developments can paradoxically worsen housing affordability by driving up rents through market mechanisms, as demonstrated by Ireland's experience where eviction notices increased by 51%, new rents averaged €1,755/month, and homelessness reached record levels despite government claims of commitment to tackling high rents.
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Conor Sheehan: Renters 'thrown to the wolves' by governmentAdded:
Can the most basic test of any housing system is really quite simple.
It's can ordinary people access um secure and decent housing.
And the fact of the matter is is that in this country we have arrived at a situation whereby the country is divided between haves and have nots.
And it's the haves who have property, who have secure housing, and the have nots are those that don't and earlier on when um Minister Coveney was sat opposite there, he spoke about 762 eviction notices and that we weren't to consider that figure in the round. We were to consider it in light of other RTB data. And look, I get all that, but at the same time 762 people um got notices of termination in the first couple of months of this year.
And they are people, they are children in school, they are people who work hard, they are people who contribute to their communities, they are people who are involved in their GAA clubs, etc. etc. They pay their rent, they pay it on time.
Um they do everything right. And they obviously received that dreaded notice of termination at the start of this year. And the most depressing thing about being here tonight doing this is that um this is all fairly predictable.
And I really worry and I wonder how bad things must get before government actually takes its head out of the sand in relation to this and acts because government was warned a count corolla repeatedly that weakening rental protections, failing to control rents, and relying on an overheated market in the way it has done would make this crisis worse.
The consequence of the government's rental reforms are that eviction notices are up by 51% disputes with the RTB up by nearly 18% new rents averaging 1755 euro a month over 2200 a month for new renters in Dublin, two over 2100 in Galway, over 2100 again in Limerick, and in loads of counties around the country we've had double digit rent inflation. We've had 12.6% in in Limerick, and we've had 9.9 just under 10% in Galway, and we can repeat ad nauseam or the government can, if you like, the talking points that they have in their counter motion in respect of supply, but the fact of the matter is that homelessness has risen in this country to a level that we have never seen in the history of the state.
Um house prices continue to rise and all around the country we see young people postponing key life milestones because they cannot secure a stable home. We have couples in their 30s, they're back in their childhood bedrooms, and we have families going from homeless hub to homeless hub. I was out last week a count corolla as many of us right across the house have been in respect of these by-elections, and I met an individual when I was canvassing in the north inner city of Dublin who told me he's moved He's been homeless 6 years nearly and he's moved 78 times in that period of time.
And that has stuck with me ever since, that level of displacement, that level of poverty, that level of insecurity.
And it's not just that man I met last week because we have a situation now in this country whereby we have peace people with decent jobs, decent salaries, and decent lives. And their lives, in essence, are completely precarious because their life is built on quicksand because they are renters.
And what really depresses me is the way the government treats skyrocket skyrocketing rents as um necessary but unfortunate or unfortunate but inevitable because the fact of the matter is we have come to a situation now where we accept things that would have been politically unimaginable a decade ago.
And time and again we hear the same mantra about the need to incentivize supply and the need for private sector investment.
And the government repeatedly uses this as its reasoning for the rental reforms introduced as part of the RPZ amendment bill.
But the type of supply that the government talks about invest incentivizing is a small number of high-yield expensive built-to-rent luxury developments. So, what this means in practice is a small number of expensive apartment developments, maybe in the docklands, maybe in Sandyford, maybe in Cork, but certainly not in Limerick where there was a 12.6% rent increase.
And not in Galway either where a 9.9% rent um increase.
But there nothing that government is actually doing a counter corollary to address this. There is no acknowledgement of this in the counter motion. And you know, I found I found the counter motion genuinely I was enraged when I read it because it states that the government is fully committed to tackling high rents.
And when I saw that in the counter motion, I literally nearly fell out of my my chair [clears throat] because how can the government put that into a counter motion when it is legislated to allow landlords to literally put rent in this country through the roof by the market reset um element of the legislation which I begged the minister to remove during [snorts] the um committee and second stage of the RTB amendment bill. I even tabled what I would have called a sensible middle ground compromise amendment of a rent break in order to moderate the worst of this legislation to protect renters. And at every stage, I was completely ignored and the legislation was guillotined. So, for the government to put that into a counter motion that it is that it is fully committed to tackling high rents, quote end quote, that is simply factually incorrect. It is untrue and it is misleading because this counter motion is not grounded in reality because there's another part of the counter motion that states that recent reforms to the rental market aim to encourage investment and development which will encourage the building of new rental apartments to help slow down rent increases and moderate rent levels over time. The rent The rent levels for these new built apartments, these luxury apartments and this and this luxury student accommodation are tied directly to the CPI and are and are exempt from the 2% cap. So, that means that these newly built apartments enter the market at at already really high over inflated rents. And because they're exempt from the cap, they drive rents even higher. You look at cities like Dublin where a rent rent consumes it's about 50% of a worker's after-tax income. It's 45% in Galway.
And it's 35% in Limerick. And this government through the policy interventions that it has taken is subsidizing and sponsoring what I could only describe as a build-to-rent cartel.
And either the government is either not being honest with people or it genuinely does not understand the cause and and effect of what it's doing.
And I don't know which is more worrying because the policy framework that government have assumes that lifting rent controls on new properties will high-density apartment blocks and that you'll get enough of them to you'll get enough of them built in order to level rents off and start to bring to bring them down. Notwithstanding the fact that they can take years to materialize the fact that they will not materialize in most locations around the country.
And and notwithstanding the fact that while this is all going on, you'll have renters who will continue to be crushed by these astronomical rent increases and the government has gutted the RPZ regime to fit in order to feed this system. And it will never be able to feed it enough to satiate it properly.
And in the meantime, renters have been thrown to the wolves.
And the housing and homelessness crisis that is the worst in the history of the state is getting continuing to break its own records. And what depresses me the most is there is a lack of engagement there or constructive engagement with anyone in opposition on any of these issues. And I think the counter motion, in my view, embodies that. Because when legislation is tabled, it's voted down at second stage if it's opposition legislation or if it's a government bill, the guillotine is used and it's absolutely rammed through. And I thought it was interesting as well, Aengus Ó Snodaigh, that there was no motion of homelessness. There was no mention of homelessness in the counter motion.
Because government have no new measures in relation to homelessness, which is worsening every time, every quarter, every month, every year.
And while the counter motion speaks of 2025 and the largest number of new built social homes constructed since the foundation of the state, it fails to mention that government never met their targets under Housing for All, fails to mention that the inbuilt housing deficit continues to grow and that it continues to rely on a baseline that is disconnected from the reality of the housing crisis due to the housing deficit.
The fact of the matter is that this government is completely in hock to institutional investors. They wanted the market reset rent mechanism, they got us.
They wanted the the apartment design changes, they got them.
They wanted subsidies, they got the VAT cuts. Meanwhile, I can correlate it's renters, it's young people, it's homeless people, the most is people in precarious situations who are paying for all of this. Thank you, Deputy. Deputy Róisín
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