Minister accused of 'talking out of both sides of his mouth' with rent pressure zone plans
Sinn Féin, Labour, and the Social Democrats have all criticised Mr Browne for confirming that changes will be made to rent pressure zones (RPZs) — although the actual proposal is yet to be unveiled.
Mr Browne's comments came in an interview with the Irish Examiner, where he said that rent pressure zones — introduced in 2016 to stop big rent increases — are 'significantly inhibiting' the delivery of new apartments in Dublin.
'There has to be change. There's no question about that. The current system is significantly inhibiting the delivery of apartments in Dublin,' Mr Browne said.
I think all of the research is pointing to that direction, and it's just obvious from the fact that apartments are not being delivered
Mr Browne said that while rent pressure zones would be changed, he intended to introduce 'significant protections' for renters — including looking at reforms to renters rights.
The Housing Agency has provided Mr Browne with an options paper on reform, which includes the outright abolition of rent pressure zones, retention, or changing how much landlords can increase rents each year.
Sinn Féin's Eoin Ó Broin highlighted the recent Daft.ie rent report, which found the average rent in Ireland is now €2,053 per month. This is the first time the €2,000 mark has been breached.
'I have to say: The minister is gaslighting renters and he's talking out of both sides of his mouth. He's telling the industry, on the one hand, that he is going to buckle under pressure and allow them to jack up rents even further and — at the same time — he's promising to protect renters,' Mr Ó Broin said.
'You cannot do both of those things.'
'Limited tax incentive'
Conor Sheehan, Labour's housing spokesperson, said renters must not be 'thrown to the wolves to satiate investors'.
To deal with the issue of a lack of investment in Dublin, Mr Sheehan suggested a bespoke solution such as a 'limited tax incentive' for investors looking to build apartments in the capital.
Social Democrats housing spokesperson Rory Hearne said his party would 'vociferously' oppose any changes to rent pressure zones.
Some of Mr Browne's ideas have been welcomed, however, with Labour and the Social Democrats cautiously optimistic about initial talks for a State-led savings account to fund housebuilding.
The housing minister said he is currently considering the introduction of a scheme where the public could invest savings, with funds going towards the construction of homes.
'It is something we're looking at. We have to be very careful what it looks like, how it's funded,' Mr Browne said.
In a letter to Mr Browne, Mr Hearne said he had spoken in the Dáil previously about such a scheme and added that his party would be happy to engage with Government on the matter.
'Rather than chasing unreliable global institutional funds to build unaffordable rental homes, here is a mechanism to provide additional sourcing of private finance that can deliver affordable housing,' Mr Hearne wrote.
'We need new ways to fund housing to make a difference to the lives of a generation locked out of homeownership and denied affordable rental homes.'
Mr Sheehan also welcomed the proposal, saying Labour had included it as part of their general election manifesto.
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