Dáil Éireann Debate, Tuesday - 13 June 2023
749. Deputy Francis Noel Duffy asked the Minister for Housing, Local Government and Heritage if his Department is considering increasing the household income threshold for the cost-rental scheme; and if he will make a statement on the matter. [27935/23]
View answerThe policy intent of developing a Cost Rental sector in Ireland is to support the housing needs of those on moderate incomes who are facing high rents in the private market and who do not qualify for social housing supports. The Government’s Housing for All plan targets the delivery of 18,000 Cost Rental homes by 2030, primarily through delivery by Approved Housing Bodies (AHBs), Local Authorities, and the Land Development Agency (LDA). Funding has been allocated by my Department to AHBs through the Cost Rental Equity Loan (CREL) scheme, and to Local Authorities through the Affordable Housing Fund (AHF).
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.
All Cost Rental providers are legally obliged to make Cost Rental homes available in line with the provisions of Part 3 of the Affordable Housing Act 2021 and associated Regulations. Eligibility and income parameters are a key tool in targeting State-supported homes at those who fall within the moderate income cohort and are considered most in need of affordable housing interventions. The primary eligibility condition for accessing Cost Rental housing is a maximum net annual household income (less income tax, PRSI, USC and superannuation contributions) of €53,000. This criterion remains under review to ensure it remains fit for purpose in targeting support at those who cannot affordably access homes for rental on the private market.
