Housing supports in general, including the more recent Rental Accommodation Scheme, are provided by local authorities. However, I am anxious that all avenues are explored to provide financial support for people on long-term rent supplementation who may be in a position to purchase their own home.
In this regard a study overseen by my Department and the Department of the Environment Heritage and Local Government was commissioned from Goodbody Economic Consultants to examine the potential of supplementing home ownership specifically among the client base that comes within the rent supplementation arrangements. The study was aimed at identifying possible viable alternative approaches to meeting housing needs for long-term rent supplement recipients. These alternative approaches would be in addition or complementary to the range of social housing options currently provided for by the Department of Environment, Heritage and Local Government through local government initiatives. The consultants are finalising their report and their conclusions and recommendations will be considered by officials of both Departments. Since initiating the study, a number of significant developments in relation to the provision of housing for people on low incomes have been announced. These initiatives will be taken into account by officials when reviewing the report.
Some of the initiatives taken include:
allowing for the continuation of rent supplement to qualified persons moving into full-time employment while local authorities are sourcing accommodation under the Rental Accommodation Scheme (RAS), and
an improvement in the disregards applying to additional income in the assessment of means for rent supplement purposes. At present up to €60 and 50% of additional
income between €60 and €90 is disregarded in the assessment of means for rent supplement purposes. The 2007 Social Welfare and Pensions Act provides that the first €75 of additional household income is disregarded and that 25% of any additional household income, with no upper income limit, can also be disregarded.
Another development includes proposals by the Minister for Environment, Heritage and Local Government to introduce an ‘incremental purchase' scheme for social housing tenants and prospective tenants based on the development of the ‘shared equity' concept whereby tenants would be allowed to use their rental payments to build up an equity stake in a local authority house in an incremental fashion in return for paying a premium on the rent and taking over responsibility for the maintenance of the dwelling. The objective is to make it possible for households with incomes substantially lower than for affordable housing to start on the path to home ownership. This scheme is outlined in the recent Statement on Housing Policy "Delivering Homes and Sustaining Communities".