Disputes over rent hikes soaring since 4% cap on landlord prices

Pressure of rental market forcing people to rent homes they cannot afford

Complaints over rent arrears, deposit retentions and evictions have led to a significant rise in disputes between tenants and landlords in the past year, according to the Residential Tenancies Board.

The latest research from the rental support body shows a notable rise in complaints over housing security, rent payments and contract obligations since the Government introduced a 4 per cent cap on rent rises last year.

The cap was introduced to ease pressure on people renting in areas known as rent pressure zones, with the aim of preventing landlords from pricing tenants out of their homes.

These pressure zones now cover 55 per cent of all tenancies across the State. However, disputes over rent increases have risen by 160 per cent since the introduction of the cap with eight out of 10 landlords in these zones imposing illegal rent increases, according to the board.

READ MORE

Nearly one quarter of tenants are now paying more than €1,300 a month on their rental accommodation.

The average monthly rent in Dublin was €1,382 last year, up from €1,271 the year before. Rents outside the capital also increased, rising with the average monthly rent rising from €677 per month in 2015 to €731 in 2016.

Overall, 55 per cent of cases were found in favour of landlords.

Arrears

Rent arrears were the most common cause of dispute filed to the RTB in 2016. The second most common reason for dispute last year was invalid notice of termination followed by deposit retention, breach of landlord obligations and breach of tenant obligations.

In the case of deposit retentions, 68 per cent of deposits were fully refunded to the tenant following an investigation into the dispute.

Complaints were also raised over the standard and maintenance of properties, tenants remaining in their accommodation after the tenancy termination date, illegal evictions, anti-social behaviour, rent over the market rate, damage to the property and breaches of fixed-term leases.

The majority of complaints over housing disputes came from Dublin, with 64 per cent of cases based in the capital. Some 12 per cent of dispute cases came from Cork, 6 per cent from Waterford and 5 per cent each from Athlone and Limerick.

Nearly 30 per cent of the population across Ireland is living in rented accommodation, with 325,372 registered tenancies in the State.

Register

More than 20,000 landlords failed to register their property with the body last year resulting in 37 cases for prosecution and 20 criminal convictions. Landlords convicted of failing to register can face up to six months in prison.

RTB director Rosalind Carroll encouraged tenants facing illegal rent hikes and increases over the 4 per cent rate to contact the RTB for advice in filing a dispute, adding that tenants could retrospectively contest rental increases for up to six years.

“Even if a tenant has agreed to a rent and signed a tenancy agreement, they are still protected under the law; they cannot contract out their rights. If a landlord has been found to have charged an illegitimate rent, it has significant consequences and damages up to €20,000 can be awarded as well as repayment of the additional rent.”

Solidarity TD Ruth Coppinger said the RTB report revealed that landlords were using the housing crisis as an excuse to “trample over tenants’ rights”, describing the rental market as “the Wild West”.

“Ultimately, by relying on the for-profit private sector for housing and by failing to build social or affordable housing, the government has engineered this nightmare for tenants,” she said.

Sorcha Pollak

Sorcha Pollak

Sorcha Pollak is an Irish Times reporter and cohost of the In the News podcast