Students in private rentals to receive no extra protections under new RPZ rules, Housing Minister says
As legislation is set to be rushed through the Dáil this week to bring all current tenancies into a Rent Pressure Zone (RPZ), concerns have been raised about the new rent rules that are due to come into force next March.
Tenancies after that date will be subject to a six-year tenancy agreement and landlords will be allowed to reset rents to market rates after six years.
If during those six years, a tenant leaves their rental accommodation voluntarily, the landlord will also be allowed reset the rent.
However, concerns have been raised in relation to students who rent for a limited period of time for the academic year and for trainee doctors who regularly move around the country. Those groups could be subject to hikes in rent on a regular basis.
Mr Browne said that while measures would be looked at for student-specific accommodation, measures for students in the private market would not be introduced.
'We're working out issues around students while working over the bill,' Mr Browne said. 'However, in the private rental sector, as it is at the moment, there won't be any special measures put in, in terms of the private rental sector, it would become impossible to police or to manage in those circumstances.'
The minister said it would be difficult to determine whether someone was a student and then work that into legislation.
'There's always challenges like that; students, nurses, gardaí, doctors, consultants. So, there will be no special exemptions in current law for people in that particular situation, and won't be under the new legislation either, as drafted,' he said.
Mr Browne also confirmed former HSE chief Paul Reid would be paid €50,000 a year as chair of the new planing authority, An Coimisiún Pleanála.
The new body will replace An Bord Pleanála and will be expected to work towards new timelines for applications.
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Meanwhile, a judicial review into a development at the old site of the Central Mental hospital in Dundrum, Co Dublin, has added €30m to the cost of the scheme and delayed the project by at least two years.
In May 2023, the Land Development Agency (LDA) was granted permission to develop the site for the construction of 852 homes on the 34-acre site.
However, the scheme was delayed because of a single objector who lodged a judicial review against An Bord Pleanála for granting permission.
Representatives from the LDA and the Housing Agency told the Oireachtas Housing Committee that last September, the LDA submitted updated plans for the site, which will be renamed Dublin Central, for the construction of nearly 1,000 homes.
The new plans would include 940 apartments, 17 duplexes and 20 houses, with building heights ranging from two to seven storeys. Asked by Fianna Fáil TD Seamus McGrath how much the judicial review on the site has cost, LDA chief executive John Coleman said the delay has resulted in €30m in additional delivery costs.
'The impact of the delay, of the challenge, has been to add at least €30m onto the estimated delivery cost of that scheme,' Mr Coleman told the committee.
He said that the matter was not yet concluded, and they are waiting on a final decision on the planning application. He added that he hoped a final decision would be received in the coming months.
Chief executive of the Housing Agency Martin Whelan told the committee that there has been a 'near collapse' of inward investment in the housing market.
In particular, he said the requirements around equity financing are a 'major challenge'. Currently, builders are required to pay 25pc to 30pc of the cost of a development upfront.
This money is then held up for several years until the development is completed or sold.
'It's a particular challenge given that there is a higher equity requirement in relation to apartment development, and the shortage of that financing is an issue,' Mr Whelan said.
The Government will pay €148.2m to buy the hotel at Citywest, which includes the convention centre, it was also confirmed yesterday.
The hotel will be used for housing international protection applicants. Currently, around 2,000 international protection applicants, as well as Ukrainian refugees, live at Citywest.
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