It is the belief of Renua that the Irish housing crisis is primarily due to a lack of supply, and, as such, we think the idea of ‘rent pressure zones’, as put forward by Minister Coveney, are misguided and, frankly, counterproductive.
This new plan will disincentive the development of new housing and will, over the lifetime of this plan, lead to higher rents and lower availability of housing nationally. We already have a situation in which it can take up to two years to get planning permission for new builds, and this new plan will merely add to the difficulties facing developers, lessening future supply and ensuring that rents stay unsustainably high. It will create a situation in which those looking to rent will be unable to find affordable housing in these areas, and those currently renting will be afraid to leave their current accommodation because they will be unable to afford other rental properties.
Renua party leader John Leahy had the following to say “In the last year the cost of rent has gone up nearly 10% and we have reached a point at which the situation is critical, and we have reached this point because of the policies enacted by FG. This plan will do nothing to help those looking for affordable accommodation in our cities and will, in the longer term, actively make the situation worse for both renters and landlords. There are simple, constructive steps that the Government could be taking to begin fixing these issues, such as speeding up the granting of planning permission or increasing the height limit on new builds in the cities, but they have so far refused to do so. Until they begin to properly utilise these steps we will continue to have this issue, and people will continue to suffer because of this Government’s inadequacies.”