The upper limit on rent in the social housing sector should be frozen at €699 a month for the next few years, a Labour MP told the Financieele Dagblad on Tuesday.

At the moment, the rent control limit is index-linked making it increasingly difficult for tenants to afford their rent, Jacques Monasch told the paper.

The Labour party wants the upper limit frozen so that social housing remains available and affordable for people on an income up to at least €38,000 a year.

Monasch told the paper that freezing the limit would encourage investors to build more private sector housing with a rent just above €700 a month. These homes would then be suitable for middle-income earners making just too much to qualify for social housing.