No certainty of housing deal by Christmas

The Government cannot guarantee a new housing package will be agreed by Christmas or that rent certainty will be included in the measures, the Taoiseach’s spokesman has said.

The Cabinet briefly discussed housing measures yesterday morning but there was no detailed debate on the package.

A spokesman for Taoiseach Enda Kenny said the two parties were “acutely aware” of the need to complete negotiations as soon as possible. However, he could not be certain when an agreement could be reached.

A spokesman for Tánaiste Joan Burton said there was no guarantee rent certainty would be part of the package. There was clearly a difference of opinion to how the housing crisis could be solved.

Option

The Tánaiste’s spokesman said rent certainty was supported by the Labour Party but he could not say whether it would form part of the package agreed. It was an option that could potentially be useful.

Minister for the Environment Alan Kelly and Minister for Finance Michael Noonan are at odds over the plans to introduce rent certainty.

Mr Kelly is eager to link rent increases to the Consumer Price Index, but Mr Noonan is concerned about the possible impact on the market.

Mr Kelly wants rent fixed for up to four years but is said to be willing to reduce that to two years. His spokesman insisted last night his position remains unchanged.

The two Ministers have been in discussions for a number of weeks but there has been no agreement reached.

The initiative of rent certainty was first raised in March, and Mr Kelly is eager to have the measures in place by Christmas.

However, spokesmen for the Taoiseach and Tánaiste said they could not give a commitment to when the package would be agreed.

Positive discussions

Speaking yesterday Ms Burton insisted there were “positive discussions” under way.

“There are a couple of things that we are trying to bring together, the first to speed up the actual building and delivery of supply of houses in Ireland, both social housing and affordable housing. Because, above all else, this is an issue of supply,” said Ms Burton .

“Secondly, there are discussions under way in relation to how to regulate the market in relation to rent. And I’m very confident those discussions will bear fruit.”

Meanwhile, Mr Kelly is due to make a further announcement this week about the roll-out of modular homes. He has secured Government approval to fast-track 150 units on an emergency basis.

The Irish Times understands the Cabinet will discuss the housing measures in more detail next week.