The right of local authorities to set and collect rents on their dwellings is laid down in section 58 of the Housing Act 1966. The making or amending of such schemes is an executive function and is subject to broad principles laid down by my Department including that –
- the rent payable should be related to income and a smaller proportion of income should be required from low income households;
- provision should be included for the acceptance of a lower rent than that required under the terms of the scheme in exceptional cases where payment of the normal rent would give rise to hardship, and
- appropriate local factors should be taken into account including the costs of the maintenance and management of the stock of rented dwellings and the adequacy of the rental income to meet such costs.
Each local authority has its own separate differential rent scheme or schemes in operation. All these schemes, including those referenced by the Deputy, ensure that the rent payable is related to household income albeit at different headline percentage rates. As rent is calculated using each local authority’s own formula, the schemes do vary in a number of ways from each other. This is particularly the case when it comes to what may or may not be considered as reckonable/assessable income for rent purposes. Typically all local authorities make available their up to date rent scheme online.
Section 31 of the Housing (Miscellaneous Provisions) Act 2009 provides for the Minister to introduce a national rents framework for social housing tenants. Considerable work has been carried out by my Department in developing a draft of such a framework, which has as its main aim the harmonisation of local authority rents, to ensure that rent schemes are fair and sustainable, prioritise those on lowest incomes and avoid creating social welfare traps that may prevent people from either returning to work or to the private housing market. The general over-arching principle that rents should be related to incomes will be maintained.
This work is now being examined further in the light of the broader commitment given in the Rebuilding Ireland Action Plan for Housing and Homelessness, to review the disparate systems of differential rent for social housing in place across local authorities. I expect that the review will be completed in the near future, at which point I will consider what proposals might be brought to Government as part of a wider social housing reform package of measures, that would continue to ensure that housing support goes to those who need it most within a system that is responsive to people’s changing needs and circumstances. I hope to finalise this matter by the end of Q3 2019.