Dáil Éireann Debate, Thursday - 11 November 2021
93. Deputy Cian O'Callaghan asked the Minister for Housing, Local Government and Heritage the number of households that currently live in cost-rental homes; the average cost of rent; and if he will make a statement on the matter. [54970/21]
View answerUsing State support, a range of work is already ongoing to deliver Cost Rental housing. My Department is utilising the expertise of Local Authorities, the Land Development Agency (LDA) and the Approved Housing Bodies (AHBs), to deliver initial Cost Rental projects.
Under Budget 2021, €35 million was allocated to the Cost Rental Equity Loan (CREL) scheme, designed to facilitate Government loans to Approved Housing Bodies, to finance up to 30% of the capital costs of new homes for Cost Rental. A further €75 million was allocated for the delivery of Cost Rental homes in Budget 2022.
A total of 390 Cost Rental homes were approved under this first tranche of CREL funding in early 2021. Twenty five of these homes, being the first Cost Rental homes to be designated in Ireland, were acquired by the Clúid AHB at Taylor Hill, Balbriggan. The first tenants moved in to Taylor Hill from 28 August 2021. The cost-covering rents for these homes is approximately 40% below comparable open-market prices in the area, ranging from €935 per month for a two-bed terraced house to €1,150 for a four-bed detached house. Clúid has also commenced their tenant selection for a further 56 Cost Rental homes at Barnhall in Leixlip, Co. Kildare.
In addition to these 390 homes, another 50 Cost Rental apartments are currently being constructed at Enniskerry Road, Stepaside, Dún Laoghaire-Rathdown, by the Respond and Tuath AHBs, alongside 105 social housing units. Construction of these purpose-built Cost Rental homes is due to be completed before the end of the year and the tenant selection process is underway.
Delivery of CREL homes is subject to construction schedules, which, together with housing projects more generally, were impacted by COVID delays at the beginning of this year. The initial timeframes submitted by AHBs were based on all efforts being made to deliver the homes as soon as possible. As AHBs sought to use CREL funding to allow developers to construct homes that may otherwise not have been delivered, the commencement of construction on these specific units was, in most instances, not possible until the lifting of relevant COVID restrictions.
Under the Housing for All Strategy, the Government recently confirmed it is intended that approximately 18,000 Cost Rental homes will be delivered by Local Authorities, AHBs and the LDA by 2030. In building to this scale and with an average of 2,000 Cost Rental Units per year, the State will provide certain focused funding supports to help delivery partners to provide rental homes targeting affordable rents, at levels in the order of 25% below market rents.
