Minister says some rents may increase as he admits 41,000 homes 'not realistic'
Housing Minister James Browne has conceded that rents "may go up in certain cases" due to his new Rent Pressure Zone plans.
The Fianna Fáil TD also admitted that the housing target of 41,000 in 2025 is "no longer realistic".
Rent Pressure Zones (RPZs) are expected to be extended across the country by the end of the week after the Government's decision to rush the legislation through the Dáil.
The RPZs restrict the amount that a landlord can increase rents by two per cent or the rate of inflation, whichever is lower.
More sweeping measures will be introduced next March that will see tenants enter into six-year contracts.
However, landlords will be able to increase the rent to market rates either at the end of the six-year period or whenever a tenant leaves voluntarily.
This has led to concern that short-term renters, such as students, will be negatively affected by rent rises.
It has also angered the opposition, who argue that landlords will be able to increase rents regularly.
Speaking on RTÉ's Morning Ireland, Minister Browne conceded that some rents may increase under the plans.
He said: "The only way we can get rents down is to increase supply. That's having a certain system in place for tenants, for landlords and investors.
"The current system is clearly not working. The Housing Agency report made that very clear, we have one of the toughest rent control systems in the world, and it is clearly impacting on supply.
"Rents may go up in certain cases. I certainly hope they don't.
"Our aim is to get rents down by increasing the level of supply. That's what we need to see happen."
Speaking separately on Newstalk, Minister Browne also conceded that the Government will miss its housing target of 41,000.
He said: "I think the challenge we have this year is we're coming off a much lower base from last year than was expected. We had hoped for much higher figures last year.
"I think, looking at all of the different predictions, which are fairly consistent, I think 41,000 is not realistic for this year.
"We will wait to see how the year works out. I don't particularly like getting into predictions.
"My position as minister is to maximise supply, maximise the delivery of new homes and, irrespective of what the housing numbers will be this year, I'm making a step change so we can get that housing supply up, because we need to get from 30,000 onto 50,000, on to 60,000 houses.
"40,000 houses is nowhere near enough."
Social Democrats housing spokesman Rory Hearne criticised Minister Browne's comments.
He said: "This morning, the Minister for Housing said that, in the wake of recent government policies, 'rents may go up… I certainly hope they don't.'
"This interaction illustrates the government's uninformed, spray and pray approach to tackling the housing crisis – the Minister either knows his policies will cause an increase in rent cost, which he hollowly apologises for, or he doesn't understand how his policies will affect the market.
"It's incompetence like this that has caused the Central Bank to downgrade its forecast for how many homes will be built this year and over the following two years – just when it looks like we can't fall any further, the government finds a way to worsen housing outlook."
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