THERE ARE CALLS for the Government to take action to close a loophole that would allow landlords increase prices beyond current rent protection levels.

Labour Senator and Housing spokesperson Rebecca Moynihan has called for the Government to take additional action on landlords to prevent them from using rent law loopholes to increase rents higher than current caps.

Under current Rent Pressure Zone (RPZ) rules, rent can only be increased by a maximum of 2% a year.

However the rules do allow landlords to add on backdated rent increases if rent has not risen for several years.

Moynihan called on the Government to close this loophole, saying it could lead to double digit rent increases.

“It is deeply depressing to see the greed at play in the housing market. At a time when people are cutting back on meals, are walking instead of taking a bus, at a time when people are genuinely afraid that they won’t be able to keep a roof over their head, we see cuckoo funds charging €2,140 a month for a one-bed apartment and up to €5,220 a month for a three bed,” said Moynihan.

“Until government grasps the nettle and stands up to these funds, we will see this continue. These funds are profit driven, and with rents starting at over €2,000, it’s clear that they are not employing a moral compass.

“It’s beyond time that the Minister stands up to these funds and brings forward emergency legislation to close the loophole next week. The opposition would support this measure for the sake of struggling renters.”

Minister for Housing Darragh O’Brien said that current tenancies are protected through the RPZ cap.

“We’ve been very clear, on existing tenancies 2% rent cap is in place.

“I am also very conscious that we are continuing to see a decreased supply in relation to the private rental market and the continued flight of individual landlords is of a concern as well, but we do need rental properties.”

The call comes as Sinn Féin prepares to bring forward a no-confidence motion against the Government, with party leader Mary Lou McDonald saying that lack of action on policies like housing is part of the reason for tabling the motion.

Additionally, the Government have just launched their new €400 million shared-equity scheme to assist first-time buyers in purchasing new-build housing.