Dáil Éireann Debate, Tuesday - 24 July 2018
2778. Deputy Brendan Howlin asked the Minister for Housing, Planning and Local Government his plans to review the rent limits for housing assistance payment; the estimated cost of increasing the limits by 10% and 20% respectively; the estimated cost of benchmarking the maximum rent at the 35th percentile of rents registered with the Residential Tenancies Board; and if he will make a statement on the matter. [35269/18]
Amharc ar fhreagraThe HAP rent limits were increased significantly in July 2016, including by up to 60% in some areas. The Government also provided flexibility to each local authority to agree to a HAP payment up to 20% above the maximum rent limit, where it is necessary, because of local rental market conditions.
Additional discretion of up to 50% above rent limits is available to assist in housing homeless households in the Dublin Region. The additional discretion available to homeless households recognises the difficulty this cohort of households face in sourcing and securing properties in a highly competitive rental market.
At the end of Q2 2018, 21.3% of the total number of households being supported by HAP were benefiting from the additional flexibility (excluding the DRHE homeless data). In those cases, the average rate of discretionary payment being used was 15.7% above rent limits provided.
My Department monitors HAP data on an ongoing basis, as well as other key information relating to the private rental market. Indications are that the current HAP rent limits and the flexibility to exceed those rent limits provide local authorities with sufficient capacity to assist households in securing rented accommodation that meets their needs. I have no plans at present to increase HAP rent limits in particular local authority areas, a course of action which could have further inflationary effects on the private rented sector and thereby have a potentially detrimental impact on the wider rental market, including for those households who are not receiving HAP support. The cost of any particular level of increase in rent limits would depend on the extent of utilisation of the increased limits, the impact on the utilisation of the additional discretion to go beyond rent limits and the timing of application of any increased limits having regard to rent reviews and the application of Rent Pressure Zone limits on rent increases.
