The State plays a major role in the private rental market through the rent supplement scheme. As the Department currently funds approximately 30% of the private rented sector it is essential that State support for rents are kept under review and reflect current market conditions. There are approximately 90,000 persons in receipt of rent supplement for which the Government has provided €436 million in 2012.
Revised maximum rent limits came into force on 1 January 2012 and are in place until June 2013. These limits were set after an analysis of the most up to date market data available. The emphasis of the rent limit review was to ensure that maximum value for money for tenants and the taxpayer was achieved whilst at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation.
The revised limits are applicable to new rent supplement tenancies from January 2012 and existing tenancies on review. Approximately 40,000 rent supplement claims have been awarded in 2012 indicating that accommodation can be secured within the new limits. Department officials dealing with rent supplement tenants will continue to ensure that their accommodation needs are met; there will no incidence of homelessness due to these changes. Officials in my Department continue to review the impact of the rent limits on those who claim rent supplement but at this stage I have no plans to revise the existing rent limits.
