FF warns 4% rent cap will lead to 12% rise over three years

Fianna Fáil is to seek to change the Government's rental strategy insisting it cannot support proposals to impose a 4 per cent cap on all rent increases.

The party held two meetings yesterday to discuss the measures announced by the Minister for Housing Simon Coveney.

Several members raised concern that the cap would see increases across the board in Dublin and in Cork and may see rises elsewhere in the country.

The measures would allow for rent increases to be capped in Dublin and Cork at 4 per cent per year over a three-year period.

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The party is worried this may lead to an automatic 12 per cent increases in rent across the board.

Others insisted that the rent certainty measures should not be limited to the two main cities.

The party said the same difficulties are being experienced across the country and any rent relief cannot be focused on two areas.

It is understood some members argued that the 4 per cent should be reduced to two per cent, while others insisted rents should be frozen as they are.

Fianna Fáil’s support is necessary to ensure the rental package is passed due to the confidence and supply arrangement agreed between the two parties.

Mr Coveney had sought to have the legislation passed by the Dáil and Seanad by next week, when the Dáil breaks for its Christmas break.

However, it has been met with widespread opposition from political parties across the Houses.

Sinn Féin, Labour, the Anti-Austerity Alliance-People before Profit and the Social Democrats have all objected to the measures contained in the package.

Sinn Féin’s housing spokesman Eoin Ó Broin said the proposals would see the average rent in Dublin increase to €2,314 and €1,628 in Cork over the next three years.

Mr Ó Broin has sought the assistance of Fianna Fáil's housing spokesman Barry Cowen to form a joint approach to amending the proposed legislation.

The two are due to meet today to discuss if they can table amendments to the package.

Mr Ó Broin said the core issue is a guaranteed rent increase of 12 per cent over the next three years.

He added: “This will continue to heap pressure on struggling renters and lock low-income families and single people out of the rental market.

“Low and middle-income families and single people simply do not have this money. They cannot afford further rent increases.”

Labour leader Brendan Howlin said his party had sought progress on rent certainty when in Government but Fine Gael resisted.

Mr Howlin said the party was in an isolated position on this, insisting it has no real grasp of the nature and scale of the problem.

The amendments were to be given to opposition TDs last night and will be debated over the next three days.

It will then be debated in the Seanad next week in an effort to ensure rent certainty measures are provided in January.

However, with such strong opposition from all sides it is a very tight timeframe to have it passed.

The Social Democrats' TD Catherine Murphy said commuter towns including Kildare and Wicklow must be included in any solution.

Ms Murphy said areas including Leixlip, Celbridge and Maynooth in Kildare and Bray and Greystones in Wicklow are on a par with Dublin City and County rents.

She said: “I would hope that Minister Coveney has taken a thorough review of the rental markets across the country and will therefore recognise the need to implement more nuanced measures than simply targeting two big cities.

“ Those measures must tackle the problem of exorbitant rental prices in the areas which are most affected.”