Dáil Éireann Debate, Tuesday - 25 July 2023
634. Deputy Sean Sherlock asked the Minister for Housing, Local Government and Heritage if he intends providing assistance for a large number of tenants who are paying up to 50% of their weekly income in the current cost rental model; his plans to address this; and if he will make a statement on the matter. [36594/23]
View answerCost Rental is a new tenure type which was introduced through the Affordable Housing Act 2021.
Cost Rental provides tenants with secure tenancies in sustainable, long-term homes. Under the Cost Rental model, rents for homes are set to cover only the cost of financing, building, managing and maintaining the homes. It is targeted to deliver starting rents of at least 25% below comparable market level.
Importantly, one of the conditions of this scheme is that households must have net income (i.e. the level of income after tax) of less than €53,000. This limit will be revised from the 1 August to €66,000 in Dublin and €59,000 elsewhere.
The range of discount to market rent on delivered cost rental homes to date vary from 25% to 50%. For example, a recent cost rental development at Lancaster Gate Cork provided by Clúid AHB, offered rents for a 1 bed apartment at €990 and a 2 bed apartment at €1,100, both representing a significant discount on comparable market rent.
The benefits of Cost Rental allow for a long-term, secure rental option that will contribute to the development of a sustainable housing market in Ireland which provides choice across all tenures. It also offers a reduced and more affordable rent of least 25% below comparable market rent.
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).
