HOUSING MINISTER DARRAGH O’Brien has received government approval for the text of a bill that provides a legislative basis for tenants to have the first right of refusal when their landlord puts their rented home up for sale.
Where a notice of termination is served on the basis of that a landlord intends to sell the rented home, they are obliged under the legislation to invite the tenant to make a bid to purchase the property within 90 days.
After the 90-day period, the landlord will be obliged to invite any tenant who made an unsuccessful bid within that time to make a further bid to purchase the property at a price equal to the final sales price that the landlord is willing to agree with another party on the open market.
The landlord would be obliged to accept the matching bid from the tenant under this law.
The minister had previously promised to push the new tenant right to first refusal legislation through the Dáil last summer, having first made the commitment to bring in such rules at the time the government lifted the eviction ban.
The government said it is important to note tenants are already availing of opportunities to purchase or indeed to remain as long-term tenants in their home under the current measures which are in place such as the Tenant in Situ Scheme, the Cost Rental Tenant in Situ Scheme and the expanded First Home Scheme for Tenants who receive a Notice to Quit.
This legislation differs from the other schemes as it applies to tenants in private rented accommodation who do not receive housing supports. While other scheme largely relate to the sale of properties to local authorities.
In addition to the government approving the text of the Residential Tenancies (Amendment)(No.3) Bill 2024, the minister also published a review into the private rental sector.
The report, published today, stated that the delivery of cost rental homes needs to be accelerated.
The review, which is a commitment under Housing for All, also recommends that government consider if Rent Pressure Zones (RPZ) should remain in place, be modified or removed.
Addressing the issue of affordability, the review found that more affordable rental solutions for households are needed.
It noted that at present cost rental rents are set by reference to being at least 25% below market rents. However, as overall construction costs and market rents rise, the level of rents required for the scheme has risen.
“There is a need to ensure that there is a supply of cost rental properties that can continue to be accessed by households in income cohorts immediately above the income limits for social housing,” the report stated.
In most cases, cost rental accommodation is rarely below €1,000, with Sinn Féin’s Eoin Ó Broin criticising the cost of the rents, stating that they should not be dubbed ‘affordable’.
He said €1,390 for a 1-bed; €1,580 for a 2-bed; and €1,750 for a 3-bed “are not affordable rental”.
“Buying expensive turnkey units from developers is not cost rental,” he said.
The review said that there is a need to ensure lower rental costs can help recipient households access their tenure of choice, whether that means continuing to rent in the market or accruing a deposit and becoming homeowners.
In addition, the review said that any examination of the RPZ system should consider whether it should remain, be modified or scrapped altogether before the scheme comes to its deadline at the end of 2025.
“A further consideration is whether the incomes of tenant households are growing relative to inflation in line with the 2% per annum cap on rent increases when HICP (Harmonised Index of Consumer Prices) is higher than this,” stated the report.
It stated it is “clear that the calibration of the Rent Pressure Zone system is imperfect in certain respects”.
The review also looked at the best balance of rights between tenants and landlords in respect of tenure security and evictions, the tax treatment of non-corporate landlords as well as the need to incentivise investment in the rental sector.
Mary Conway, chair of the Irish Property Owners Association said it rejects any proposal that tax reform for landlords should be contingent on energy upgrades or properties remaining in the market for a set time is another example of unfair, costly and conditional policies being put forward.
Further measures to provide security of tenure is also not welcomed by the association, with Conway stating that the “continuous infringement on the constitutional rights of property owners is inexcusable”.
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