LAYING THE RIGHT FOUNDATIONS THE NEED FOR SECURITY OF TENURE AIDEEN HAYDEN , THRESHOLD November 23rd 2016
• National housing charity - Est. 1978 • We solve people’s housing problems by providing housing advice and advocacy • We campaign for a better housing system using a rights- based approach • 32,000 housing queries in 2015
Threshold statistics since 2004
The Private Rented Sector in Ireland
Collapse in Housing Supply…
Lack of Social Housing Rebuilding Ireland-Action Plan for Housing and Homelessness, DHPCLG, July 2016
Increased demand for PRS…. .
Current Issues
Current Issues Lack of Rent Supply Increases Receivership, Social Repossession Housing & Buy -to-Let Need Properties
Shortage of properties to rent Daft.ie Rental Price Report - 2016 Q3
Rapidly rising rents…. Daft.ie Rental Price Report - 2016 Q3
Overreliance on PRS to meet social need ¨ It is estimated that around 99,000 households receive State support for housing in the private rented sector, or 96,207 (32%) of all RTB registered tenancies. ( House of the Oireachtas, Report of the Committee on Housing and Homelessness, June 2016)
Receivership, Repossessions & Buy-to-Let Properties
Homeless Families 1173 1014 . FAMILIES WITH 2065 FAMILIES WITH 2462 DEPENEDENTS IN DEPENDENTS IN HOMELESS HOMELESS ACCOMODATION ACCOMATION DUBLIN REGION NATIONALLY
Current Measures in the Private Rented Sector
Residential Tenancies Act 2004 ¨ Clearly defines rights and obligations for landlords & tenants ¨ Security of tenure up to 4 years ¨ Rent review annually and cannot exceed market rent ¨ Protection against illegal eviction ¨ Means for landlord to repossess property
Limitations of 2004 RTA ¨ 2004 Act regulates past and present, not future ¨ Size of rented sector doubled since Act ¤ PRS rented sector still seen as ‘Cinderella sector’ ¨ Regulation quickly surpassed by fallout from financial crisis- ‘accidental landlords’ , buy-to-let sector collapse, more families renting long-term, legal anomalies with regard to receivers ¨ Rapid rents rise - undermines security of tenure
Response to crisis ¨ Rent review period extended to 2 years- ‘Rent Freeze’. Sunset clause after 4 years ¨ Longer notice of rent increase from 28 to 90 days and provide 3 examples ¨ Extended notice period-up to eight year & statutory declaration with regards selling/family member ¨ 100% Mortgage Interest Relief for landlords who rent to tenants in receipt of state housing benefits
Rebuilding Ireland ¨ Double the annual level of residential construction to 25,000 homes ¨ 47,000 new social housing units by 2021 ¨ New Strategy on PRS
Budget 2017 ¨ € 1.2 billion to DHPCLG for housing supply ¨ € 98m to homelessness services ( € 70m in 2016) ¨ € 105m for HAP with a target of transferring further 15,000 households from Rent Supplement ¨ € 134m for the RAS with a target of transferring 1,000 households from Rent Supplement to € 732 million to deliver 4,450 social housing units ¨ Residential rental property relief ¨ Ceiling for tax exemption on Rent-a-Room increased
Tenancy Protection Service ¨ Dublin, Cork, Meath, Kildare, Wicklow, Galway, Mayo & Roscommon ¨ Seeks enhanced rent supplement payment for tenants at risk of homelessness due to a rent increase .
Laying the Right Foundations?
Issues in relation to Security of Tenure
What is needed for security of tenure? National Rent Secure Strategy Certainty Occupancy for the PRS
Rent Certainty ¨ “In the absence of some binding rule for the updating of rents for sitting tenants, a landlord could easily circumvent tenure security by a sufficiently drastic raise in rent (economic eviction).” (Franz Hubert, 2003)
Rent Certainty ¨ Link rent certainty measures to the cost of living
Protection from Termination of Tenancies ¨ Introduction of indefinite tenancies ¨ Removal of sale of property ground ¨ “Tyrellstown Amendment” ¨ National rollout of Tenancy Protection Service
Other Measures ¨ Broaden the definition of landlord ¨ Clear plan for long-term affordable rental supply, especially for low to mid range
THANK YOU
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