The supplementary welfare allowance scheme, which is administered on behalf of the Department by the community welfare division of the Health Service Executive, provides for the payment of a rent supplement to assist eligible people who are unable to provide for their immediate accommodation needs from their own resources and who do not have accommodation available to them from any other source.
Rent supplements are subject to a limit on the amount of rent that an applicant for rent supplement may incur. Notwithstanding these limits, under existing arrangements the Health Service Executive may, in certain circumstances, breach the rent levels as an exceptional measure, including: Where there are special housing needs related to exceptional circumstances, in particular, for example, disabled persons in specially adapted accommodation or homeless persons whose housing needs cannot be met within the standard terms of the rent supplement scheme etc; where the person concerned is entitled to an income disregard and has sufficient income to meet his or her basic needs after paying rent, and; where the tenant will be in a position to resume responsibility for his or her rent within a short period. This discretionary power ensures that individuals with particular needs can be accommodated within the scheme.
Setting maximum rent limits higher than are justified by the open market would have a distorting effect on the rental market, leading to a more general rise in rent levels and in landlord income. This in turn would worsen the affordability of rental accommodation unnecessarily, with particular negative impact for those tenants on lower incomes.
On 26 July 2005 regulations were introduced providing for new rent limits for the period 26 July 2005 to 31 December 2006. These new regulations provided for moderate increases in certain rent limits with no change in others — no rent limit was reduced. Later this year, my officials will be reviewing the current levels of rent limits in order in determine if any amendments, either upwards or downwards, to the current limits are required. The review will take account of the prevailing rent levels in the private rental sector generally, based on indices from the Central Statistics Office, together with detailed input from the Health Service Executive on the market situation according to patterns of rent supplement applications within each of its operational areas.
The review will also include consultation with the Department of the Environment, Heritage and Local Government and the Private Residential Tenancies Board. My Department will also welcome submissions in regard to this matter from the various voluntary agencies working in this area.
In the meantime, I would point out that while rent levels have risen by some 3% since the current rent limits were set, it is too early to determine whether that trend will be maintained in the medium term. Rent levels also fall in response to market conditions and, for example, rent levels are currently at or below the levels reached in May 2001 and again in August 2003. The planned review later this year will ensure that the rent limits will reflect realistic market conditions throughout the country, and that these limits will continue to enable the different categories of eligible tenant households to secure and retain suitable rented accommodation to meet their respective needs.