The Irish Independent's View: RPZ change no quick solution, but leaders had to do something
No one set out to lead anyone on a merry dance, but for many it felt that way. Too many rash commitments on the delivery of new homes repeatedly came up short.
Gone is the upbeat attitude with the recognition that something had to give. Housing Minister James Browne's announcement on changes to Rent Pressure Zones (RPZs) is a recognition of new realities. The zones are to be extended across the country, but landlords of newly built apartments have been empowered to increase rents in line with inflation.
The change was forced on the Government because of an acute drop in the number of apartments being built. In March last year, there were 1,816 commencements, while in March this year the figure was just 160.
Taoiseach Micheál Martin said the reasons for introducing the measures were twofold – to offer policy certainty and protection for renters and to boost supply. But the opposition is far from happy.
Sinn Féin leader Mary Lou McDonald said it was effectively the 'death knell of Rent Pressure Zones'.
People Before Profit-Solidarity's Paul Murphy told Mr Martin: 'Now you have said existing tenants will be capped at 2pc, new tenancies will be capped at Consumer Price Index levels, and this is the strongest set of rent protection measures we've ever had.'
The need for these changes is further recognition of dysfunction in government policy over the years
Mr Martin was adamant that existing tenants will see no change at the end of six-year tenancies. However, the country has to get up to 50,000 new houses a year – €20bn is required to reach this target, and this would not be provided by the State alone.
'The involvement of the State is enormous. It has to be balanced and supplemented with significant private sector investment,' he added.
But renters need to know where they stand. As things are, private sector rents are already exceeding an average of €2,000 a month.
Threshold, the charity that helps renters with housing problems, said the extension of the zones 'will provide comfort to those renters living in areas experiencing double-digit rent increases in recent years'.
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It also welcomed the limitations on no-fault evictions. Landlords will need to be monitored closely to ensure they are compliant with the new rules.
The need for these changes is further recognition of dysfunction in government policy over the years.
Mr Browne said there was a 'fine balance' to be struck as the State aims to attract investment while ensuring fair treatment for tenants.
He has also pledged further measures such as a shake-up in planning rules in the coming weeks. However, he acknowledged this is not a 'silver bullet'.
No one was expecting one, but the measures will be watched keenly for an indication that the days of firing blanks are over.
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