Taoiseach ‘not responsible for all the noise’ in response to housing proposals

The Taoiseach has attempted to distance himself from criticism over his plans to consider proposals to encourage more private developers to build housing and phase out rent pressure zones (RPZs).

Micheal Martin said more investment from the private sector is needed to reach the target of building 50,000 homes a year.

Comments by Mr Martin that the Government will consider abolishing the rent pressures zones by the end of the year were widely criticised by opposition parties.

Sinn Fein, Labour and People Before Profit said that his comments have caused fear among renters.

Sinn Fein leader Mary Lou McDonald said accused Mr Martin of “singing from the same hymn sheet” as lobby groups for institutional property funds.

Speaking during Leaders’ questions on Wednesday, Ms McDonald said: “Everybody, of course, knows there needs to be private investment in housing, by the way, but we also know that we do not require government giving carte blanche to these funds to enter the Irish market with their free hand and to rip people off.

“You see, that’s the approach that got us into this mess.

“Your government has no new ideas on housing, no vision for the future of housing. You double down on the very approach that has failed abysmally.”

Mr Martin accused opposition parties of ignoring the “very real progress” that has been made in housing over the last four years.

He also said there are a number of options to consider before the legislation that governs the RPZs expires at the end of the year.

He said this includes extending them or reform them in line with the Housing Commission report.

Speaking earlier outside Government Buildings on Wednesday, Mr Martin said he was “not responsible for all the noise that comes around” his comments.

“This is the first point I would make. I think the opposition last year attacked government for not giving any consideration, they claim, to the Housing Commission.

“Housing Commission have led a whole range of recommendations and issues that quote, ‘should be examined’,” Mr Martin said.

“That is what I said, that they should be examined, the proposals that the Housing Commission have come up with.

“I said we would be protecting renters. We don’t want to cause any further pressure on renters, but nothing is coming from the opposition at all, only hyping it up, creating fears themselves and stoking fears and making false statements.”

He added: “The bottom line is, more broadly speaking, we have to increase supply. All parties said we want to get to 50,000. The how of getting to 50,000 is the issue, and supply is the issue, and we do have to get more apartment buildings.

“We have to get more investment from the private sector. The state is expanding and increasing its expenditure. Last year alone, there was an extra billion allocated towards the end of the year to housing in light of expenditures.

“There will be further expenditures added again this week in respect of housing. So the state is more than doing its part, and we want, will continue to protect renters.

“But if people are saying we shouldn’t have a debate on this, or we shouldn’t examine proposals, I think that’s not the answer, either.

“You have to weigh up and look at every single issue, including whether we can incentivise apartment building on brownfield sites, because brownfield sites has been a policy objective of everybody for a long time, but they haven’t taken off with the level and numbers that we need in construction and housing.

“Brownfield sites have been hailed as a better solution, sustainability wise, climate wise, but there’s a real issue there in terms of unlocking the potential of brownfield sites in our cities to create a far greater number of apartments and greater supply.”

Meanwhile, Tanaiste Simon Harris said that he is “conscious” that renters nationwide feel “insecure”.

He said that Mr Martin was entitled to make the comments, and claimed that reviewing RPZs is in the programme for government.

“That’s entirely correct. I’m just very conscious of the fact I know he and everybody in Government is, that renters already in Ireland feel insecure. We know it,” Mr Harris added.

“Those of us of a generation where so many of our generation rent, know the pressures that people feel. They know that they’re worried about the rent, that the rent is already such a disproportionate amount of their income.

“I want those people to know that Government is not going to do anything to see the rent go up.

“What Government does need to do, though, is look what policies levers we can put in place, there are lots of different ways you can protect renters, but of course, the best way you can protect renters and lower the rent is making sure you increase housing supply.

“So there’s more homes to rent, and crucially, more homes to buy.”

Finance Minister Paschal Donohoe said the Government would weigh up positives and negatives of rent caps before making a decision.

He did not share a view of whether he believed they should be retained.

“What I’ve done is I’ve outlined the balance that I believe rent pressure zones do need to attain, and I want to look at the evidence on both sides in relation to it, and then we’ll make a decision at that point,” he said in Dublin on Wednesday.

“But I believe it’s appropriate to do before you make a decision, is look at the evidence and that’s what I’m going to do.”

He added: “What we do have to do with regard to the operation of rent pressures is consider the beneficial effects they are having in helping people with the cost of rent, which is very, very important, but also look at are they having an effect in slowing down the availability of rented accommodation in the first place.

“Over time, the best assurances that we can give those who are renting of their ability to access rental homes in the future and their rents become more affordable, is for more rental homes to actually be available, and we have to consider the rent pressure zones in the context of that. But again, I know what an important role they play in preventing excessive rent increases, and that is uppermost in the Government’s mind as we review them.”