John Cummins (Fine Gael) | Oireachtas source

We are seeing a movement in interest rates. Mr. Taaffe might comment on that in the context of the cost-rental model we are trying to roll out. I have heard some anecdotal evidence that with cost rental we can spread the cost of finance over a 40-year period but there may be a shift in interest rates. We have the cost-rental equity loan, CREL, scheme that is at a very low cost but the other 50% has to be financed through the Housing Finance Agency. There is some movement in rates in that respect. Is there an issue with apartment viability in particular with cost rental and will we perhaps have to look at something in order to ensure the costs to the end consumer in terms of rent are acceptable? It may be something along the lines of the Croí Cónaithe cities fund but it would address the ultimate rental price that the consumer would pay. If we cannot get below the 25% discount on market rents, the process fails in terms of scoring criteria. The drive is there for what we are trying to achieve in terms of density and the high volume of cost-rental units.