Tánaiste Joan Burton has proposed the establishment of a rent regulator as part of the Government’s housing package.

The two Coalition parties are at odds over proposals to solve the housing crisis, with rent certainty measures proving to be the most difficult aspect. The Tánaiste has now proposed a body which would be given specific powers to control rent prices.

The initiative was raised with Minister for the Environment Alan Kelly and Minister for Finance Michael Noonan, who are tasked with preparing a package on the housing crisis.

PRTB

It is unknown whether this new body would replace the Private Residential Tenancy Board (PRTB) or if it would be simply giving the body more powers. The PRTB currently has statutory powers to resolve disputes between tenants and landlords.

The agency has the power only to advise the Government on issues relating to the rental market and cannot interfere to tackle rising rents.

A Government source said: “This is at the very early stages and the finer details will need to be worked out.”

The proposal will be considered at a Cabinet subcommittee on housing with the Taoiseach next week.

Consumer price index

It further casts doubts over Mr Kelly’s proposals to link rent to the consumer price index. This has been at the centre of a dispute between Mr Noonan and Mr Kelly. Mr Noonan is concerned it would discourage investment in the sector.

At a parliamentary party meeting this week, Labour politicians rallied around Mr Kelly, the party’s deputy leader. A Labour source said party members were strongly supportive of Mr Kelly’s proposals on the subject.

However, one added: “Alan needs to start making some friends now. We need this to be sorted and it won’t be if the two Ministers refuse to budge.”