People Before Profit To Move Rent Reduction Bill 2022 Today In Dáil

Wooden blocks with the word Rent, house and up arrow

Today at 1pm in Dáil Éireann, People Before Profit will move the Rent Reduction Bill 2022 to the second stage.

The Bill would amend the Residential Tenancies Act 2004 to reduce rents to affordable levels by limiting them to a maximum of a quarter of median monthly household income and to establish a National Rent Authority to oversee this. Luxury accommodation is excluded.

Speaking ahead of the bill being moved in the Dáil, Richard Boyd Barrett TD said: “The rental situation in this country has been out of control for many years now. Rents are at stratospheric levels, and this is being exacerbated by the cost of living crisis where the price of energy, food and heat is putting more and more pressure on hard-pressed people.

“The government has maintained their hands-off approach and allowed the market to charge exorbitant rents to people. People are having to take on one or two extra jobs just to make ends meet and pay the rent at the end of the month. Families are being pushed into homelessness at a shocking rate because rents are utterly unaffordable.

“This bill would mean that rents would be reduced to that of a quarter of the median household income. For people all over this country, this would be an enormous improvement in the current situation. It would also establish a National Rent Authority which would oversee this.

“These measures along with the government commencing a massive state-building programme of public housing on public land are absolutely essential if we are to deal with the rental crisis.

“If the government is serious about ending, or at least easing the rental crisis, they will allow this bill to pass and support its passage into law.”

Rent Reduction Bill 2022

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EXPLANATORY MEMORANDUM

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Purpose of the Bill

The purpose of the Bill is to amend the Residential Tenancies Act 2004 to reduce rents to affordable levels by limiting them to a maximum of a quarter of median monthly household income and to establish a National Rent Authority to oversee this and related matters. Luxury accommodation is excluded.

Provisions of the Bill

Section 1. Standard clause setting out terms used in the Bill.

Section 2. Amends the Residential Tenancies Act 2004 to limit rents on dwellings to a maximum of a quarter of local or national median monthly household income, whichever is the lower and based on the relevant household size. This is to be determined by a new National Rent Authority established in section 3. This will apply immediately to new tenancies and to existing tenancies within 12 months of the Act coming into force. Luxury accommodation is excluded.

Section 3. Establishes a new National Rent Authority composed of tenant and employee representatives. This will have responsibility for: ascertaining local and national median monthly household income based on the latest Census data in order to fix maximum rents; setting maximum household sizes for different categories of rented accommodation; and designating the category of luxury accommodation. This can account for no more than five percent of the rental housing stock in any local area at any time.

Section 4. Provides for the Act to enter into force within 90 days of being promulgated by the President.

Rent Reduction Bill 2022

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Mar a tionscnaíodh

As initiated

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CONTENTS

Section

1. Interpretation

2. Rent Controls

3. Review

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Acts referred to

Residential Tenancies Act 2004

   Rent Reduction Bill 2022

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Bill

entitled

An Act to amend the Residential Tenancies Act 2004 to reduce rents to affordable levels by limiting them to a maximum of a quarter of monthly household incomes and to establish a National Rent Authority for this purpose.

Be it enacted by the Oireachtas as follows:

Interpretation

1. In this Act—

“Act of 2004” means the Residential Tenancies Act 2004;

“National Rent Authority” means the National Rent Authority established under Section 3.

Limitation and Reduction of Rents

2 (1) The Act of 2004 is amended by the substitution for Section 19(1) of:

“19 (1)

(a) Subject to subsection (c), in setting, at any particular time, the rent under the tenancy of a dwelling, an amount of rent shall not be provided for that is greater than twenty-five per cent of local monthly nominal median household disposable income for households of the relevant size, or twenty-five per cent of national monthly nominal median household disposable income or households of the relevant size, whichever is the lower, as determined by the National Rent Authority.

(b) The rent under the tenancy of a dwelling where a rent had been set prior to the commencement of this Act must, within twelve months of the entry into force of this Act, be no greater than twenty-five per cent of local monthly nominal median household disposable income for households of the relevant size, or twenty-five per cent of national monthly nominal median household disposable income or households of the relevant size, whichever is the lower, as determined by the National Rent Authority.” 

(c) Subsections (a) and (b) shall not apply to luxury accommodation as so determined by the National Rent Authority.”

2 (2) Section 19(2)(b) of the Act of 2004 is amended by the insertion of the following after

“review of that rent”: “, or any subsequent setting of the rent under the tenancy in compliance  with Section 19(1)(b)”.

Establishment of National Rent Authority

3. The Act of 2004 is amended by the insertion of a new Section 19B:

“19B The Minister for Housing, Community and Local Government shall make regulations to establish a National Rent Authority that will:

  • (a)   determine local and national monthly nominal median household disposable incomes for the purposes of ensuring affordable rents, with reference to the latest Census.
  • (b)   set maximum household sizes for different categories of rented accommodation.
  • (c)   determine criteria under which certain categories of accommodation may be designated as luxury accommodation. This shall not apply to more than five per cent of the rental housing stock in any local area at any particular time.
  • (d)   be comprised of tenant and employee representatives.

Short title, collective citation and commencement

4. (1) This Act may be cited as the Rent Reduction Act 2022.

(2) This Act shall come into operation on such day as the Minister for Housing, Planning and Local Government may by order appoint not being later than 90 days from its promulgation by the President.