Debate contribution: New Deal for Private Renters in Northern Ireland

Debate contribution by Ms Kellie Armstrong on 24 February 2025.

MLA: Ms Kellie Armstrong
Party at the time: Alliance Party
Date: 24 February 2025
Type: Debate contribution
Business: Private Members' Business
Heading: New Deal for Private Renters in Northern Ireland
Assembly identifier: Official Report component 4813591

Text

I beg to move
Thank you, Deputy Speaker. I wish to address a pressing issue affecting the over 300,000 individuals in Northern Ireland who rely on the private rented sector for their housing needs. The motion highlights the critical challenges of unaffordable rents, insufficient long-term security and inadequate tenant protections that many of our constituents face daily. The affordability crisis in our private rental market is stark. In the final quarter of 2024, an average monthly rent consumed approximately 35% of the average income, escalating to an alarming 50% for our lowest earners. That surge in rental costs — a 9% increase from the previous year — far outpaced the 4% growth in average wages during the same period. Such disparities force families into making difficult decisions, often sacrificing essential needs — food and heating — to keep a roof over their heads. That imbalance is exacerbated by a significant undersupply of rental properties. Estate agents report an average of 46 enquiries for every available rental unit, which is a clear indicator of the demand-supply mismatch. Contributing factors include delays in private housebuilding, inadequate funding for new homes, planning system bottlenecks and insufficient water infrastructure capacity. Moreover, with over 48,000 individuals on the social housing waiting list, many low-income families are compelled to seek housing in the private sector, often at higher cost and with fewer protections. The insecurity inherent in short-term tenancies leaves many renters in a perpetual state of uncertainty. The looming threat of eviction or unexpected rent hikes can disrupt lives, affecting employment, education and community ties. The Private Tenancies Act (Northern Ireland) 2022 introduced various measures, such as restricting rent increases to once every 12 months. However, without comprehensive regulations to enforce those provisions, tenants remain vulnerable to abrupt changes that can lead to displacement and financial hardship. While the Private Tenancies Act aimed to enhance tenant protections, its implementation has been piecemeal. The sections that address critical issues, such as smoke, heat and carbon monoxide alarms, were scheduled to come into force by the end of last year. Tenants have been left without those essential safeguards in the interim. The intention of the House was to ensure that renters were provided with fair notice at the end of a tenancy. That, too, has not been delivered. Furthermore, the absence of a statutory housing ombudsman means that tenants lack a dedicated avenue for resolving disputes efficiently and fairly. To address those challenges, Alliance recently published a comprehensive new deal for private renters, which encompasses the following key measures. There will be third-generation rent controls that implement a considered system of rent regulation to prevent unstable rent hikes and ensure affordability for tenants while providing fair returns for landlords. There are three generations of control, as outlined in the Chartered Institute of Housing's report, which confirms Professor Richard Arnott's typology of rent control, and states:
"first generation rent regulation measures seek to impose a control on existing rent levels; they are typically called ‘hard rent controls’ or ‘rent freezes'; second generation regulation governs rent increases within and between tenancies; an example is setting the very first rent at market levels with subsequent increases and rents for new tenancies being controlled; and third generation measures",
which I am proposing:
"refer to restricting the increase of rent within the tenancy e.g. restricting the amount or frequency of increases for a current tenant."
Alliance proposes that a third-generation rent regulation could provide renters and landlords with a fair solution. The next measure is a ban on no-fault evictions. There should be legislation to prohibit evictions without a valid reason, which would provide tenants with greater security and stability in their homes. The third measure is open-ended tenancies. Open-ended tenancies should be established as the standard, with a move away from fixed-term contracts, which often disadvantage tenants. The fourth measure will be the creation of a statutory housing ombudsman, who will create an independent body to oversee disputes between tenants and landlords, ensuring accountability and access to justice. There should be an increase in the affordable rental supply by utilising existing housing stock more effectively and incentivising the development of new affordable rental properties to alleviate the supply shortage. That would include reducing the number of short-term holiday lets and making greater use of empty homes. Finally, there should be a thorough review of housing standards and the enforcement of minimum fitness standards. The enforcement mechanisms should be strengthened to ensure that all rental properties are safe and habitable, including statutory time frames for landlords to investigate and carry out repairs. Those proposals are not merely aspirational; they are grounded in the urgent needs of our constituents. By implementing the new deal, we can create a private rented sector that offers affordable, secure and high-quality housing for all. The challenges in our private rented sector are multifaceted and deeply entrenched. However, with decisive action and comprehensive reforms, we can transform the sector from being one in which a tenant has to choose between a roof over their head or dinner on their table to one that serves the best interests of tenants and landlords. While this is another non-binding motion, I urge my fellow Members to support the proposal and commit to delivering a new deal for private renters in Northern Ireland. Doing so will send a strong and clear message to the Minister for Communities and the Executive that the House wants better for our private renters. Housing is included in the Programme for Government: it is now time for action not words.

923 words. Text as published by the Northern Ireland Assembly.

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