8 DUN laoghaire Gazette 22 January 2015
ask the politician A weekly Q&A with local representatives dublin city council: Cllr Patrick Costello (Green Party)
Investment in high quality public housing is the best way forward The biggest problem with the rental market and one of the main causes of skyrocketing rents is a lack of supply in housing across all sectors. The best initiative to help with rising rent costs would be to increase supply of high quality public housing, reducing the pressure on the market and the upwards path of rents. Such an investment in public housing would ensure affordable housing for families in such public housing but also decrease the pressure and competition in the private rented sector that currently is leading to spiralling prices. Back in our history when this country had very little money, we still managed to build a significant amount of public housing and so provide affordable accommodation for everyone. We have
to find ways to do this again. The recent National Economic and Social Council report, NESC 138 – Social Housing at the Crossroads outlines the benefits of a cost rental model and the improvements such a move can bring in terms of improving the housing stock. Equally in many parts of Europe, for example in Germany, it is common for pension funds to invest in public housing as a low risk stable and predictable source of income. We would be better served by such ideas than by tax breaks for landlords. Actively building houses would also put money into the pockets of the builders and tradesmen delivering such projects and the direct financial benefits to families would be spread wider across society. This would give the economy as a whole a greater lift from the increased spending and demand.
This week The Gazette asks the politicians: Is Minister Alan Kelly’s announcement of proposals to offer landlords tax relief to keep rents at affordable prices the best way to deal with rising rents?
fingal county council: Deputy Ruth Coppinger (AAA)
Labour and FG happy to see rents rise The Labour/Fine G a e l g ove r n m e n t centre their housing policy around what best serves the interests of landlords and the banks. The interests of those renting, those struggling to pay their mortgages and those on council waiting lists are not a priority. This is seen in the recent announcement by Labour’s Alan Kelly to offer tax reliefs to landlords to keep rents low. There are 90,000 families on the housing waiting lists, the vast
majority of whom are in private rented accommodation in receipt of rent supplement. It should be noted that Joan Burton made the decision to reduce the rent supplement cap. This is a decision that has directly resulted in homelessness in Dublin 15 as families can no longer afford the rent when landlords raise it. There are increasing numbers of people contacting me about facing eviction following their landlord’s property being repos-
sessed by the bank. The Government offers no protection for tenants in this situation. The Anti-Austerity Alliance believe that housing is a right and not a privilege. We are calling for rent controls, investment in massive public house-building to end the waiting lists, and real rights for tenants. We also advocate a writedown in mortgages to the real values of the properties in order to give relief to struggling mortgage holders. Only by tackling the market system can there be an end to the housing/homelessness crisis.
dun laoghaire-rathdown county council: Cllr Sorcha Nic Cormaic (SF)
Tax relief will only benefit the landlords
I DON’T believe offering tax relief to landlords will necessarily lead to the affordability of rents in this county. It will only benefit landlords, and they will continue to increase prices if they are not prevented from doing so by rent controls. Demand for rental housing is very high and supply is very low, but this does not excuse rent levels nearly 40% higher than three years ago. There is nothing to stop landlords taking advantage of desperate people who are trying to keep a roof over their head.
Rent controls are needed to stabilise rent levels and to stop the hikes which are putting people on the streets. We also need a major investment in social housing. Unfortunately, the Government has indicated they are opposed to rent control, despite the fact that rent control has been a major part of the action plans put forward by campaigners against homelessness in recent months.
The Tanaiste has claimed there are constitutional problems with rent control. This is an excuse because she is politically opposed to regulating the private market. If we are serious about making rent affordable, there is an urgent need for the introduction of rent controls. This combined with an effective social housing programme and greater protections for tenants in the private sector is what is needed to bring down rents.
south dublin county council: Cllr Ed O’Brien (FF)
Suggested reforms don’t go far enough While the Government’s willingness to tackle the issue is to be welcomed the suggested reforms do not go far enough in my view. There needs to be an immediate review of landlord and tenant law in the country to provide, in the short term, some relief for people renting. We need to create a proper rental market. At present the tenant is faced with two real problems in this
country. Firstly, they have only limited security of tenure and, secondly, they have almost no protection against rising rents. I believe that the Government should incentivise the rental of property by both offering tax breaks for landlords and being more flexible with rent relief. We have a large number of what are described as accidental land-
lords in the country. If the Government were to encourage relief for people in those situations, it may allow more financial freedom which would in turn help keep rents manageable. The Government could also afford capital gains tax relief for landlords who maintain a property as a rental property for a period of say 10, 15 or 20 years. Again, this would provide a guarantee to the tenant that the property would be theirs to rent for that period should they so wish.