New report is wrong, rent controls needed now - Ellis
Sinn Féin Housing spokesperson Dessie Ellis TD
has dismissed the new report commissioned by the government which calls for tax
breaks for landlords rather than rent controls to protect tenants.
He made his comments following the publication of Rent
Stability in the Private Rented Sector by DKM consultants.
Deputy Ellis continued;
"This report is another sop to landlords
who have been shown to be making good profits off often substandard
accommodation charging whatever rate they choose because they know people are
desperate enough. The findings of this report that rent regulations would be worse
for tenants flies in the face of the realities of the rental market and the
experience of tenants at the moment.
“The report proposes tax breaks for landlords
but this would only increase their profits and keep rents at the same rate.
Rent rates are not currently inflated to unaffordable levels because landlords
are taxed too high; they are inflated because of the shortage of housing and
the desperation of those seeking it. Landlords are renting properties which are
often overcrowded, damp, cold and under managed for astronomical rates, which
are not sustainable given average incomes at present and the general cost of
living. People have lost their homes due to rent increases while they continued
to work a full time job.
“Recent Dublin City Council inspections found
that 90 per cent of private accommodation inspected is not up to standard. The
idea of giving landlords tax breaks to increase their profits further, on the
hope they will invest in more housing, is clearly a bad idea.
“Rent controls will not solve all our problems
but it will do a number of important things. It will stop unfair rent increases
which are making people homeless. It will also foster a culture around renting
in the long run, which makes it a more viable long term option which
should push up standards. This will not work though, unless done in conjunction
with major investment in social housing, to take the pressure off in the
private market.
“The report does call for a code of conduct for
landlords who are in arrears or rental properties being taken into
receivership. Sinn Féin has been calling for this to be done for the last three
years. A binding process whereby tenants are not left on the street because a
landlord has failed to hold onto their property is needed.
“It is also shameful that so many properties are being held
empty by banks who have repossessed them. We need to broaden the Mortgage to
Rent scheme further to keep people in their homes.
“When a family working full time cannot afford
to rent in the city they work it is clear that the rental market is not fit for
purpose and regulation is essential. That must start with stabilising
rents."