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Rent hike fears as Government ban on increases set to end for some tenants

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Minister Darragh O’Brien

Minister Darragh O’Brien

Minister Darragh O’Brien

Thousands of tenants are facing the prospect of rent hikes as the Government's new ban on increases will only apply to people deemed to have been financially impacted by the Covid-19 pandemic.

The move has sparked fears that landlords, who were legally prohibited from increasing rents for the last five months, will now target tenants with significant rent hikes.

Before his appointment, Housing Minister Darragh O'Brien publicly pledged to ensure the national rent freeze would remain in place until at least October.

However, legislation Mr O'Brien will bring before the Dail this week only contains measures to stop landlords increasing rents for people who self-declare they have lost earnings due to the coronavirus.

There are around 325,000 rental households in the country and it is unclear how many will be able to avail of the ban on increases.

Renters who can prevent rent hikes must be in receipt of the Pandemic Unemployment Payment, the Temporary Wage Subsidy Scheme or another form of State-funded welfare.

This Covid-specific rent freeze and eviction ban will remain in place until January 10.

However, tenants who have seen their income fall for any other reasons will not be able to stop rent increases under Mr O'Brien's new legislation.

The minister has also issued what has been described as a "disturbing" threat to renters, saying he would have them prosecuted if they try to prevent rent increases by claiming they were affected by the virus when they were not.

Prosecuted

In an interview with the Business Post, the Fianna Fail TD said: "If they're [renters] found to abuse it, we will have a certain level of audited checks on it and they will be prosecuted."

Labour Party housing spokesperson Rebecca Moynihan said she was very concerned about the minister's comments.

"Disturbingly, the minister plans to criminalise tenants for false declarations without doing the same to landlords availing of eviction exceptions. To do this to someone at risk of losing their home is really despicable," she said.

"The changes will only give protection from eviction until January to those who can prove they have been financially impacted by a limited set of circumstances, and puts in place a complicated process to apply for that exception.

"The reality is that this will result in more people losing their home as they will have to navigate a technical system."

Sinn Fein housing spokesperson Eoin O Broin described the new legislation as "very worrying" and said it will lead to an increase in homelessness, which had fallen while the rent and eviction ban were in place.

Mr O Broin said there were a disproportionate number of people who were not originally from Ireland living in rented accommodation.

He said many of them did not speak English or have the necessary literacy skills to fill in a self-declaration form.

"The legislation is full of loopholes. The rent freeze will be cumbersome for those it does apply to and for many thousands of others the ordinary rules will apply which will allow landlords to issue rent increase notices," the Sinn Fein TD said.

The Government aims to rush the Residential Tenancies Bill through the Dail and Seanad this week.

The rent freeze comes to an end in five days' time and normal tenancy rules will apply to most renters across the country.