No current plans to implement Rent Pressure Zones in Tipperary says Minister

Minister for Housing Darragh O’Brien indicated that there are no plans to include areas of Tipperary under a Rent Pressure Zone (RPZs).

He told the Tipperarylive at this week’s Fianna Fail think-in that RPZs are regularly monitored by the Housing Agency.

They advise the Minister on changes to the RPZs, and if there is a need to include the county, he will act on it.

“We made additions in the last two weeks, but in relation to specifically Tipperary, those type of decisions are kept under review. We monitor the rent increase, that's monitored by the housing agency.

“Should it be deemed there is a need to extend rent pressure zones wherever they will submit to me, and I will act on them,” said Minister O’Brien.

He said about 76% of the country is covered by rent pressure zones.

But Tipperary has none.

STAFFING WOES

The Tipperary Star asked the minister about concerns raised by Limerick Chamber in their last rental monitor about Tipperary and the midwest.

In the last report, Limerick Chamber Chief Economist Seán Golden said:

“Historically, Tipperary has been the most affordable place to rent in the midwest. However, in July, they have closed the gap with Clare and Limerick.

“This is important to note, while supply might increase, that does not mean that prices will decrease – this month has shown the opposite.

Over the last year, across all three counties, prices have been trending upwards,” said Mr Golden.

Limerick Chamber have been consistent in saying that lack of accommodation is have a significant impact on businesses ability to get and retain staff.

However, the minister said he met with Limerick Chamber and a number of others before the summer.

He said that while they did raise that concern with him, they were ‘quite positive’ about the Government's initiatives. He said he would like people to know they are making progress and “turning a corner.”

He said he fully understands Limerick Chamber’s point, but the country is at nearly full employment.

“I engage on a regular basis, as recent as July, I think it was. I met with Limerick Chamber as well, who did put that view across, and we had a good discussion on it.

“But I think you will find, as well they have welcomed a lot of the initiatives that Government have brought forward to increase stock.

“But I am aware of the challenges there for people who want to buy their own home, for businesses who want to expand,” said the Minister.

HELP TO BUY

That said, the Minister is focused on helping people buy their homes. He told this paper that independent research shows that most renters want to buy, and that is his priority.

He said the Help to Buy grant is helping people and would like to see it expanded beyond next year.

In Tipperary he said, the shared equity scheme is something he has seen work.

“In Tipperary we have had people approved under the first home scheme, that’s the equity scheme. You get your mortgage and deposit, and we bridge the gap.

“That's working well, but what we need to see is supply across the board, so what we need to see more homes so people have choice,” said the Minister.

He said last year they delivered 30,000 new homes across the country.

“I was looking at Tipp in particular, and there are actually 1,000 new homes since quarter three of 2020 up to quarter one of this year. About 600 of those are social homes.

“We are seeing big progress in Tipperary, and I want to commend the local authority on that,” said Minister O’Brien.

He said that waiting lists have dropped about 15%

HELP FOR RENTERS

The Minister said there is no doubt that rents are increasing across the country but he maintains that the Government is bringing in measures.

He said the rent tax credit is really helpful to people he has spoken to.

“About 3,500 renters in Tipperary have claimed that tax credit already. We want more people to know about it and more people to claim it,” said Minister.

He said he is working with Michael McGrath to increase the tax credit and hopes to make an announcement in early October.

“That is a priority for Fianna Fáil as well,” said Minister O’Brien.

He said recognises this region, and in Tipperary there is a lack of supply.

To address this he is working on a tax package to keep ‘good landlords’ in the market.