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RTÉ News
a day ago
- Business
- RTÉ News
3 crucial issues facing the Government on housing
In a week when the minister responsible for housing admitted that meeting the Government's own target for the delivery of new housing this year would be "extremely challenging", RTÉ's Economics and Public Affairs Editor David Murphy examines three key issues that must be addressed if progress is to be made. The Government is facing the most significant decision during its tenure on housing - what to do about rent caps. The limits on how much landlords can charge are blamed by some in the industry for a downturn in home building last year, although they protect thousands of financially stretched tenants in an already expensive market. The current Rent Pressure Zones were introduced as a temporary step in 2016 and continuously extended. In 2021 they were tightened, reducing the maximum increase from 4% to 2% and making them some of the most restrictive in the world. The current rent caps expire at the end of this year, and the Government has to decide if it plans to retain them, alter them or abandon them altogether. Last month the Minister for Housing James Browne received a report from the Housing Agency which looked at options on the issue for the Government. The report highlighted significant problems with retaining the existing 2% cap and looked at alternatives including moving to a higher limit. Another option, suggested by Paris-based think tank the Organisation for Economic Cooperation and Development, is allowing to landlords freely adjust rents when tenants move out. But the downside is that it could act as a financial incentive for property owners to evict tenants. The feeling in government circles is that any change is going to require a lot of work to make it clear to the public why an adjustment to the rent caps is being planned. That would likely see ministers preparing the ground by explaining the drawbacks with the existing restrictions, which are partly blamed by the industry for a 24% fall in apartment construction last year. Obviously fewer new homes leads to higher rents at a time when the population is growing, the economy is expanding and there are plenty of jobs. It is important to note that the cycle of higher interest rates, now being reduced, made some building projects unviable for investors over recent years and that too was a factor in the fall in house building last year. Many observers across the political spectrum and housing sector believe the Government will have an exceptionally tough decision to make on rent caps and will face vocal opposition. Sources within the Coalition say that high level talks are continuing and a decision is possible in the coming weeks. Completions During the General Election last year, the Government controversially misled the public over how many houses would be built in 2024. A number of figures, including then Minister for Housing Darragh O'Brien said about 40,000 would be completed last year. When the final figures were published only 30,000 were built. This year the Government has a target of 41,000 homes. The Economic and Social Research Institute forecasts it will fall short, and that 34,000 will be completed in 2025. This week, Minister Browne admitted meeting the Government's target would be "extremely challenging". He added there were "different numbers out there and they are all trending to the ESRI's number". But the Government's own target of 41,000 is far short of the approximately 50,000 or 60,000 homes other experts, including the Central Bank and the Housing Commission, say are needed to address the existing shortfall and future needs. This week, Minister Browne said the State is now involved in supporting about 50% of the housing output. He argues that if completions are to increase "we have to activate the private sector". That means getting more private investor involvement - which explains why the Government is reviewing the rental caps. Water connections Homes can't be finished without connections to water and wastewater networks. Late last year, Irish Water/Uisce Éireann said it could only connect 35,000 properties a year over the next five years. The utility has become notably vocal about key issues which it feels are hampering urgently needed improvements and expansions of the water network. At the Oireachtas Committee on Infrastructure this week, Uisce Éireann CEO Niall Gleeson forecast it would spend €10.3bn on capital projects between 2025 and 2029. But he said the organisation required a further €2bn to achieve the Government's objective of building 300,000 homes over the next five years. He also criticised the existing funding model and said providing additional money annually creates uncertainty. He suggested multiannual funding to help deliver long-term projects. The Department of Housing says Uisce Éireann's request for an additional €2bn is being considered in the context of the revised National Development Plan which is expected to be published in July. Mr Gleeson also highlighted issues with the planning system and said some complex projects are taking more than a decade to get the green light. He called for reform of legislation to tackle the issue. The Government continually repeats that dealing with the housing crisis is the number one issue for this administration, but it has a lot to do before it can convince observers that significant progress is being made.
Irish Times
4 days ago
- General
- Irish Times
Hundreds of homes for homeless in Dublin at risk as tender to manage them attracts no bids
Hundreds of homes, planned for Dublin's most vulnerable homeless population, are in jeopardy as a tender to manage them has attracted no bids, according to the Housing Agency and the Dublin Regional Homeless Executive . Dozens of people, who have been sleeping on streets or who have spent long periods in emergency accommodation and should have been offered housing, have not received offers. The Housing First programme, where entrenched rough-sleepers are provided with own-door housing along with wraparound supports to help sustain their tenancy, has been managed in Dublin by the Peter McVerry Trust , the homeless housing charity, since 2019. With the expiration of the trust's contract last year, the Housing Agency led a procurement process for the management of 540 tenancies and to meet targets to create hundreds more. READ MORE The agency sought bids for three 'lots' of tenancies. Though tenders were received from housing bodies for two smaller 'lots' of about 125 current tenancies each, the largest lot of 250 existing tenancies attracted no bids. There are currently 540 Housing First tenancies in Dublin, with a further 581 across eight regions outside the capital. The programme's current difficulties are limited to properties in Dublin. The programme for government set a target of expanding the scheme – regarded as hugely successful in tackling long-term homelessness among single adults – to 2,000 nationally, including hundreds more in Dublin. [ Child-focused homelessness strategy needed, says Ombudsman Opens in new window ] A target of 143 additional tenancies were to be created this year, with another 143 next year in Dublin. Sources say fewer than 10 have been created so far this year. 'The scheme has effectively been paused,' said a senior housing sector source. 'It means really vulnerable people who would be put forward for housing with all the wraparound supports, or individuals who have been a long time in emergency accommodation and need those extra supports going into housing, are just being left.' In addition, supports for existing tenancies are said to 'stretched', with staff from other charities, including Depaul and Focus Ireland assisting Peter McVerry Trust's Housing First staff. 'The Government has made a complete mess of this tender process,' said Sinn Féin's housing spokesman Eoin Ó Broin. 'As a result, existing Housing First tenants are not getting the support they need and vital new housing first tenancies are not being created.' [ 'A grim situation': Number of homeless people rises further Opens in new window ] The Dublin Region Homeless Executive, which provides statutory supports to the scheme, said the delay incompleting the tender has 'hindered the growth of the service in 2025″. 'However, all stakeholders are working collaboratively to consolidate the Housing First programme and support the current Housing First tenants.' A Housing Agency spokeswoman said its Housing First national office was working to ensure current tenancies are protected and future tenancies will be created under the tender process. She said 'challenges' facing Housing First included sourcing enough one-bedroom units and recruiting and retaining tenancy support staff.
The Journal
21-05-2025
- Business
- The Journal
'Stop screwing up': Mary Lou McDonald tells Taoiseach the government is gaslighting renters
RENTERS ARE BEING 'gaslit' by Housing Minister James Browne, Sinn Féin leader Mary Lou McDonald has said. Rounding on the Taoiseach on the issue of housing during Leaders' Questions, the Sinn Féin leader told Martin bluntly: 'I want you to stop screwing it up.' She said the housing minister had said that the rent pressure zone regulations has stifled investment, but has also promised to protect renters. McDonald said the minister is 'gaslighting renters', stating that it is 'not possible' to do both things at the same time. The minister 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. Advertisement It is understood the minister is considering the paper and the options presented in it about the future of RPZs, with changes to the regulations set to be announced shortly. 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%. Speaking to The Journal earlier this month , Browne said he understood the fears of renters, stating that it is the reason he wants to make and announce a decision on the changes relatively quickly. The Journal / YouTube Speaking in the Dáil, McDonald asked the Taoiseach if the government will be 'caving to vulture funds and allowing them to charge what they like'. Related Reads Rental prices rising at near 20-year high as Limerick rents shoot up towards Dublin levels RPZ changes will have 'significant impact' says Minister, who claims he understands renters' fears While McDonald mentioned yesterday's report, which found that rental prices are at a 20-year-high, with the average Dublin rent standing at €2,540, Martin said the Residential Tenancy Board (RTB) is the index he pays attention to. In May, it showed a national average of €1,680 per month for new tenancies, reflecting a 5.5% increase over the previous year. He acknowledged that rents are high, stating that supply is the issue, and private investment is needed. Martin accused the opposition of being bereft of ideas on housing. She said society is 'numbed' to the government's failure, and they are voting with their feet and emigrating. The Taoiseach said the highest level of social housing has been delivered by this government in the last twenty years, but added that institutional investment is needed to supplement public investment. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
The Journal
07-05-2025
- Business
- The Journal
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. Advertisement '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. Read Next Related Reads Taoiseach says no decisions made yet on Rent Pressure Zone changes Renters 'bracing themselves' for increases as Taoiseach slammed over rent pressure zone comments '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. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
RTÉ News
04-05-2025
- Business
- RTÉ News
'Options paper' suggests landlords be allowed 2% rent rise once RPZs run out
Minister for Housing James Browne has received an "options paper" from the Housing Agency which suggests landlords should be allowed to increase rent by more than 2% when rent pressure zones run out at the end of this year. RTÉ News understands the Department of Housing was given the options paper in the past week, at the same time as Mr Browne was at the centre of the Housing Activation Office housing czar appointment controversy. According to a number of sources, the options paper sets out three options for what should happen when rent pressure zones finish at the end of this year. The first is to retain the existing system, the second is to scrap it entirely and the third is to allow landlords who own properties in rent pressure zones to increase their rents by more than the current limit of 2% if they wish to do so. It is understood the options paper has recommended the third option - namely to allow landlords to increase their rents over and above current rent pressure zone limits. However, sources have stressed that this is currently simply an options paper, and that neither Mr Browne nor the Cabinet will be making any decision on the matter for a number of weeks. Rent pressure zones have been in place for a number of years in parts of the country where rents are highest, where rental prices are rising quickly, and where there is a shortage of affordable accommodation. Under the current system, a landlord cannot increase their rent by more than 2% per year if it involves a property in a rent pressure zone. While the system was due to run out at the end of 2024, the Government instead agreed in May 2024 to extend the system under 31 December 2025. Speaking in March, Taoiseach Micheál Martin confirmed that the Government is considering whether to continue with the existing system or to replace it with a system "which protects renters but also enables people to have a clear, stable environment in which to invest". Govt must ask if it has confidence in housing minister, says SF Sinn Féin TD Donna McGettigan has said the Government should ask itself if it still has confidence in Minister for Housing James Browne following how the appointment of a housing czar was handled. Speaking on RTÉ's The Week in Politics programme, Ms McGettigan said after recent days she wanted to know whether the Government had confidence in Mr Browne to solve the housing crisis. Ms McGettigan said the mooted €430,000 retained salary for NAMA chief executive Brendan McDonagh, who on Thursday said he no longer wanted to be considered to lead the Housing Activation Office, was the equivalent of 11 gardaí. On the same programme, when asked what chance he believed the Government has in meeting its housing targets this year, Social Democrats TD Gary Gannon said: "Zip." Mr Gannon described the controversy around the appointment of a housing czar as being "in omnishambles territory" and said while the independent housing commission recommended a housing executive with legislative footing "what we got was a strong man" suggestion from Government. Responding to the criticism, Fianna Fáil TD and Minister for Higher and Further Education James Lawless said the "public don't want parlour games" and that he believes it is "crystal clear" a Housing Activation Office is needed. Asked to respond to the housing czar plan, he said the Government was focused on the Housing Activation Office and that "nobody was talking about [a housing tsar]". On Friday, Tánaiste and Fine Gael leader Simon Harris said he did not believe a €430,000 salary to lead the Government's new Housing Activation Office would be appropriate, insisting "we have to get this right". Asked on RTÉ's The Late Late Show whether such a salary is appropriate for a job which is meant to involve overseeing housing reforms to help people who cannot currently afford a home, Mr Harris said, "I don't". However, he added, "this isn't about any one person", adding "I think what's most important is we get the skillset right".
