The Government's decision to lift the no fault eviction ban will "open the floodgates" lead to a "tsunami" of homelessness, the leader of the Social Democrats has said.
Holly Cairns told the Dáil that the outcome of the decision would be catastrophic, particularly for children.
Branding it an "appalling decision", Ms Cairns said lifting the ban would "cause huge damage" even though the damage was "avoidable."
She said people entering homelessness were finding it much harder to exit, adding "serious harm" was being inflicted on children by the State which failed to end the housing disaster.
The Social Democrats leader said 500 families were trapped in emergency accommodation for a year, with more than 200 families trapped for two years.
In reply, Taoiseach Leo Varadkar said he believed the Cabinet had taken the right decision and it was in the public interest, adding it would have made the situation worse by extending the ban.
He repeated it had not been effective reducing numbers seeking emergency accommodation; adding that the ban created new forms of homelessness, where someone who bought an apartment could not get their children into the property.
He said that extending the ban would mean the number of new landlords entering the market would be very, very low.
The Taoiseach said if new landlords did not enter the market then "we will never get rents down."

Earlier, Sinn Féin's housing spokesperson said families with children will have nowhere safe to sleep other than in Garda Stations as a result of the decision.
Eoin Ó Broin said the Government had taken a cold, blunt decision that will increase homelessness, and he asked Mr Varadkar what will be done to avert the ever-deepening housing emergency.
Meanwhile, Independent TD Thomas Pringle called on the Taoiseach to admit that the Government has failed on housing.
He told the Dáil that there were just 49 houses to rent in Co Donegal, yet there were 1,500 short-term lets on AirBnb.

In response Mr Varadkar said it is not credible to suggest that the rental market would have improved by September or the end of the year if the eviction ban was extended.
He said a decision had to be made and the Government's assessment is that an extension of the moratorium would have made matters worse.
'Cruel and inhumane'
Labour Party leader Ivana Bacik said the Government's decision to lift the ban is "really regrettable and disappointing".
Speaking on RTÉ's News at One she said: "I really think it's most regrettable that Government didn't act at least for a few months on a short term basis to try and ensure that they would have a breathing space to put in place the necessary infrastructure, things like the tenant in situ scheme that would have enabled supports for people who would otherwise be at risk of homelessness."
She said that the move is "heaping pressure on those on the cusp of homelessness".
This morning People Before Profit TD Richard Boyd Barrett said he did not accept that the eviction ban had to go and described the decision as "cruel and inhumane".
He said thousands of families, individuals and "worst of all, children, elderly and sick people" are going to end up homeless with nowhere to go.
Solidarity TD Mick Barry said tenants served with an eviction order should not "walk into homelessness" but instead remain in the property.
He said the Government's decision was reckless and extreme, adding there is no point in Green Party TDs expressing concern and that they need to act instead.
Additional reporting Mícheál Lehane & Sandra Hurley