Oireachtas Joint and Select Committees

Tuesday, 24 May 2016

Committee on Housing and Homelessness

Department of Social Protection

10:30 am

Ms Helen Faughnan:

I will check if we have something on it at that level.

The Deputy mentioned rent reviews. Our two subsequent reviews prior to 2013, in 2010 and 2011, found that the rental values had stabilised at or near the maximum rent limits that were in payment at the time and that provided scope to the Department to make savings. We had the troika programme in place at that time and Ireland had to come forward with savings. Approximately €44 million was cut from the rent supplement budget but there was scope there because the rental supplement and the market levels had stabilised at or around the rent limits we had in place. When it came to the review in mid-2013, we were trying to benchmark our limits at around the 35th percentile of housing stock that was available. At that time the Department invested €7 million because we needed to bring the limits back up to try to maintain that limit but since then the market rents have escalated and now the increase is approximately 10%. The available supply is now the lowest ever. There was no question of trying to match them. We are trying to retain the households that are being supported in private rented accommodation in their accommodation, so we are no longer market leaders. The targeted response has assisted an extra 8,000 people and we plan to spend approximately €24 million on that support this year.