I propose to take Questions Nos. 348 and 436 together.
The purpose of the rent supplement scheme is to provide short-term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources and who do not have accommodation available to them from another source. The overall aim is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer. There are currently approximately 95,000 persons in receipt of rent supplement, with €436m provided in 2012.
As the Department currently funds approximately 40% of the private rented sector it is essential that State support for rents are kept under review, reflect current market conditions and do not distort the market in a way that could increase rent prices for others, such as low paid workers and students.
New maximum rent limits came into force on 1 January 2012. These new limits are in line with the most up to date market data available. The emphasis of the rent limit review was to ensure that maximum value for money for tenants and the taxpayer was achieved whilst at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation.
The analysis of the rental market for Wicklow carried out by the Department found that rental prices for Bray were having a distorting effect on the prices for Wicklow as a whole. Accordingly Bray was excluded while establishing rent limits for county Wicklow. The rental area considered was extended to include both Greystones and Delgany, areas which were of close proximity to Bray with housing in those areas directly affecting the rental market for Bray.
Both Kilcoole and Newtownmountkennedy were evaluated and have been assigned the new Wicklow rates. It is important to bear in mind that the purpose of the review is to ensure availability of accommodation for rent supplement tenancies and not to provide rent supplement tenants with access to all housing in all areas.
I will be publishing the report which outlines the rationale for establishment of the new rent limits for the Bray, Delgany and Greystones area shortly. All indications to date show that, for each county, the new rent limits are permitting rent supplement tenancies to access suitable housing. The Department will continue to monitor rent levels throughout the country but at this stage there are no plans to revise the existing rent limits.
Rent Supplement Rent limits for County Wicklow
County Wicklow
|
Single person in shared accommodation
|
Couple in shared accommodation
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Single person
|
Couple with no children
|
Couple or one-parent family with 1 child
|
Couple/ one-parent family with 2 children
|
Couple/ one-parent family with 3 children
|
From 1 January 2012
|
240
|
290
|
440
|
525
|
625
|
670
|
740
|
From June 2010 to December 2011
|
315
|
325
|
529
|
710
|
850
|
900
|
910
|