Dáil Éireann Debate, Thursday - 4 May 2023
176. Deputy Duncan Smith asked the Minister for Housing, Local Government and Heritage if he has any plans to reduce the cost of monthly rent paid by tenants who are already in cost rental homes and are struggling to pay the amount charged to them, given their current incomes; if those in current cost rentals will see a reduction with such plans; if so, the timeframe involved; and if he will make a statement on the matter. [20836/23]
View answerHousing for All targets the delivery of 18,000 new Cost Rental homes to 2030. 2022 represented the commencement of a very ambitious programme of delivery of affordable housing, including Cost Rental homes, and this momentum will continue with delivery increasing significantly this year. A strong pipeline is in place and under continuous development by local authorities, by Approved Housing Bodies using the Cost Rental Equity Loan, and by the Land Development Agency.
The core principle of Cost Rental is that the rents cover the development, management, and maintenance costs of the homes, so that the long-term future of the homes is financially secure, but that rents are not subject to the pressures of the open market. Rents will increase only in line with consumer inflation, remaining stable in real terms, while continuing to cover ongoing costs. Cost Rental homes also come with the added advantage of long-term tenancies and certainty of rent.
It is not intended for Cost Rental to overlap with, or replace existing social housing supports for low-income households, which remain a parallel priority for me and the Government. Cost Rental is designed to assist middle-income households who do not qualify for social housing supports such as the Housing Assistance Payment (HAP), but who are facing affordability pressures on the private rental market. Cost Rental is a major step forward in providing much-needed affordable rental options to households with incomes above the limits set for social housing.
However, in recognition of the potential changes in household circumstances that can occur during a tenancy, Section 34 of the Affordable Housing Act 2021 provides that HAP maybe available to Cost Rental tenants, where they are assessed as eligible for social housing supports, after the Cost Rental tenancy has lasted for more than six months. This acknowledges the policy objective that costs are covered by rents, thereby securing the financial future of the model, while at the same time making Cost Rental a secure long-term accommodation option for households whose circumstances may change during a tenancy.
