Dáil Éireann Debate, Tuesday - 26 July 2022
718. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage the means test for cost rental that has been agreed for each local authority; and if he will make a statement on the matter. [40999/22]
View answerThe Government has acknowledged that many families are currently facing housing affordability issues in Ireland. To address this problem and as part of its Housing for All strategy, the Government has committed to the delivery of 18,000 Cost Rental homes by 2030, or an average of 2,000 homes per year, which will make a real difference for families experiencing affordability issues in Ireland.
Cost Rental is defined as housing in which tenants only pay rents to cover the costs of financing, managing, maintaining and delivering the property, rather than rents being subject to market driven movement.
The target cohort for Cost Rental homes is moderate-income households, with incomes above social housing limits. The social housing sector already caters for a significant cohort of people and it is not intended for Cost Rental to overlap with or replace traditional social housing for low-income households, which remains a priority for the Government. Cost Rental is a fundamentally different proposal and represents a new tenure option.
The Cost Rental Letting and Eligibility Regulations (S.I. No. 755/2021 signed in December 2021) set out the main eligibility condition for leasing a Cost Rental dwelling, which is that a household’s annual income, less income tax, PRSI, USC and superannuation contributions, must not be greater than €53,000. This limit targets the Cost Rental homes that are available at moderate-income households above the income limits for social housing supports, who are currently facing inflated private sector rents without any State assistance.
Applications for Cost Rental tenancies are made to the landlord for the relevant property rather than centrally to a Local Authority. At present, it is expected that Cost Rental will be delivered primarily via Approved Housing Bodies (AHBs), Local Authorities, and the Land Development Agency (LDA). Landlords have final discretion over whether to enter into any tenancy agreements as they must satisfy themselves that the tenants can pay the cost rent. Landlords are directed to seek the efficient use of resources by allocating appropriately sized homes according to household needs.
