Labour is reportedly willing to 'water down' demands on rent control to ensure it makes it into a new plan to solve the housing crisis.

The Sunday Times reports discussions between Government partners broke down last weekend when Fine Gael's Department of Finance officials refused to include rent certainty in the package.

Labour's Environment Minister Alan Kelly wants to link rent increases to the consumer price index, but reports today claim he is now willing to reduce the timescale from four years to just two.

The paper says Fine Gael would be in favour of 'opt-in' rent certainty, where landlords would have the option of not increasing rent in return for tax incentives.

Coalition talks on the issue will resume this week, and Mr Kelly vows "not to leave the table" unless measures to address family homelessness are included.