RPZ changes will have 'significant impact' says Minister, who claims he understands renters' fears
PROPOSED CHANGES TO the Rent Pressure Zone (RPZ) rules will have a 'significant impact', according to Housing Minister James Browne, who also said the government wants to 'strike a balance' in terms of driving supply while protecting renters.
The minister said he has received a report from the Housing Agency, which includes a review of the rental sector, and that he is studying the recommendations it contains.
It is understood the minister will take a few weeks to consider the paper and the options presented in it about the future of RPZs.
Browne said there are a lot of 'moving parts' to the report, but that he plans to make a decision quickly on whether to lift the rent caps or not.
'No matter what decision to make, it'll have significant impact. I want to protect renters. That's both renters who are currently renting, but also those who are living at homes with their parents who want to get out to rent. We have a major issue with supply or the lack of supply, in particular in Dublin,' he said.
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'We have to find that balance,' added the minister who said there will be work done over the next couple of weeks to reach the 'right decision'.
Browne said he wants to ensure renters are protected, but also that he wants to increase housing supply.
Lifting rent caps
Some of the measures under consideration is understood to be the lifting of rent caps for new build apartment blocks, with new tenancies, on developments on brownfield sites.
There is also speculation that those in existing tenancies will see their rents stay within the RPZ rule, which allows for a 2% increase every two years.
However, if a tenancy ends, landlords could have an option of increasing the rent for the new tenant above the 2%.
The minister said he understood the fears of renters who fear what the future holds.
'That's why we want to make that decision relatively quickly, so this is not something that's going to hang around them the next few months, we'll be making those decisions quite quickly so they know where they stand,' said the minister.
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'But renters very much are to the forefront of my concerns,' he added.
He also said that the government doesn't want to create a situation whereby they are trying to 'solve one problem and then we create an affordability piece'.
'There's already an affordability challenge out there for renters, so it's a difficult challenge we have in front of us. I'm confident we'll make the right decision, but we're not going to be rushed into it at the same time. We need to make that decision quickly so renters fears are allayed,' said Browne.
The Irish Property Owners Association (IPOA) met with the housing minister last week to discuss the rental market and raised concerns over the RPZ rules which it says are impacting landlords.
Mary Conway, Chairperson of the IPOA said private landlords must be supported to ensure they reinvest and remain in the market, at the risk of losing affordable properties from the rental market.
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