Two more areas added to rent pressure zones list

Two more areas have been designated rent pressure zones as part of rolling rental sector reforms announced by the housing minister.

Two more areas added to rent pressure zones list

The minister, Eoghan Murphy, wants to get tough on landlords who take advantage of current regulations and will also introduce a new licensing system for those renting out rooms through Airbnb to ease the rental supply problem.

It comes as the latest statistics show that rents have increased by 6.6% in the year end to the end of June this year.

Greystones in Co Wicklow and Drogheda, Co Louth have now been designated as rent pressure zones (RPZs) after experiencing what the minister described as “exceptional rent increases” in four of the six quarters up to June of this year. Both areas also have an average rent that is above the national average.

Mr Muprhy is committed to making it an offence to implement rent increases that contravene the law and the Residential Tenancies Board (RTB) will be given the powers to investigate and prosecute landlords who implement such increases.

“The onus will no longer be exclusively on the tenant,” said Mr Murphy.

While the Government has limited rent increases to 4% on properties in the designated RPZs, Mr Murphy said some landlords are finding ways around this.

Speaking at the National Ploughing Championship, Mr Murphy said: “We know that there has been some concern about landlords using the ‘substantial refurbishment’ exemption to step around the RPZ legislation and to use minor, cosmetic works to change a tenancy or seek a rent increase outside of the 4% cap.”

He said his department would now be drawing up a list of what actually constitutes substantial refurbishment and landlords will no-longer be let away with just repainting or putting down new carpets.

“This clarification guidance may ultimately benefit from being put on a statutory footing and I am examining whether this can be incorporated into an existing Bill progressing through the Oireachtas or if stand-alone legislation is required,” said Mr Murphy.

On the issue of Airbnb and other short-term rentals, he said: “Home-sharing has to mean home-sharing and so we are looking now to see what licencing we can bring in so that we can have proper regulation around the sector.

“Home-sharing is a good thing and it’s part of the economy, it does help people in actuality to keep their homes, whether they are renting out their room for a couple of weeks when they are away on holiday or they are renting a room from time to time.”

Government now want to ensure that there is a proper regulator for the rental sector which will be given more responsibility

Mr Murphy said the RTB will require more resources, power and a new type of self-financing model. This will involve asking landlords for registration every year instead of per tenancy.

A deposit protection scheme will be established, operated by the Residential Tenancies Board, to handle deposits and to manage disputes efficiently so that decisions are delivered and money is returned quickly. Under this new scheme, the RTB will be able to define a deposit at one month’s rent.

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