Dáil Éireann Debate, Tuesday - 23 January 2024
357. Deputy Sean Sherlock asked the Minister for Housing, Local Government and Heritage if there is any update of relief for those currently living in cost rental accommodation and paying up to 50% of their income on rent; and if he will make a statement on the matter. [2851/24]
Amharc ar fhreagraHousing for All targets the delivery of 18,000 new Cost Rental homes to 2030. A strong pipeline is in place and under continuous development by local authorities, by Approved Housing Bodies using the Cost Rental Equity Loan, and by the Land Development Agency.
The core principle of Cost Rental is that the rents cover the development, management, and maintenance costs of the homes, so that the long-term future of the homes is financially secure, but that rents are not subject to the pressures of the open market. Rents will increase only in line with consumer inflation, remaining stable in real terms while continuing to cover ongoing costs. Cost Rental homes also come with the added advantage of long-term, secure tenancies regulated by the Affordable Housing Act 2021.
The nature of the Cost Rental model means that, unlike differential rents in social housing for low-income households, the rent is not set according to the income of the tenant. Cost Rental homes are advertised and made available at a certain rent level, which is needed to cover the costs of delivery and provision and so ensure the long-term future of the homes in the sector.
The proportion of net income a particular rent represents will vary between households, but Cost Rental is offered as a more affordable option compared to the pressures of the private market. Where new Cost Rental homes receive State funding, projects are planned and managed so as to achieve starting rents which both cover costs and are also at least 25% below comparable homes in the local private rental market.
