Proposed rent caps won't stop homelessness

The recent rent freeze and proposed rent caps won't stop homelessness and will do little to reduce numbers on housing lists.

The introduction of rent restrictions in areas where prices have risen significantly is seen in Government as a temporary measure.  Government sources said the plan to cap rents is a stop-gap measures until housing supply catches up with demand.

The 4% ceiling on rent increases in Dublin and Cork, with other cities and commuter counties to follow will be introduced next year.

Simon Coveney, Housing Minister, said that landlords in designated areas can only increase rents by 4% per year over the next 3 years.  Once this period lapses, annual rent review will continue to apply but the price cap will be lifted.  While he calls the restriction plans "counter-intuitive", Mr. Coveney said such moves were absolutely necessary.