Linking rents to inflation is a policy for another era
The Government plan to link rent increases to the EU Harmonised Index of Consumer Prices will see rents continue to rise by about 2pc per year, according to Social Democrats Housing Spokesperson Cian O’Callaghan.
“The Government’s plan to link rent increases to inflation is coming a decade too late. They have missed the boat. It is a policy for another era. Rents have almost doubled in the last ten years. Rents in Dublin are among the highest in the EU. The Government stood back and watched as their “rent pressure zones” exploded. Their solution now is to allow rents to continue to increase even more.
“Let’s be clear – people cannot afford to pay more. What is needed now is a three-year ban on rent increases. We need rents to freeze and then fall. The Government’s new policy will see rents increase by 2pc this year, but potentially more next year if the EU inflation index increases. This is a mistake.
“Run-away rents are unsustainable and must be stopped outright. The Government has the power to call a halt to this. Instead, they have decided to give a green light for further annual rent increases.
“Linking rents to inflation as inflation rises is bad for renters. There is huge uncertainly in the economy because of COVID-19. Renters should not have to worry about inflation driving up rents. What renters need is certainty and security – which can only be delivered by introducing an outright ban on rent increases for the next three years.”
1 July, 2021