Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

Supports relating to housing are a key priority for this Government, as evidenced by the early implementation of our commitment to introduce increased rent limits under the rent supplement and housing assistance payment, HAP, schemes. The increased limits were introduced from 1 July 2016. The rent supplement scheme assists 50,700 tenants at a cost of €267 million this year. The review process undertaken represented a realignment of the maximum rent limits with agreed rents, with rents generally benchmarked against the 35th percentile of those registered with the Residential Tenancies Board. The review's methodology is evidence-based and reflects the pressures on rental properties in each location. Rents were increased by a weighted average increase of approximately 30% in the Dublin area.

In recognition of the ongoing difficulties in the rental market, my Department continues to implement a targeted, flexible, case-by-case approach where rents may exceed the maximum limits. Approximately 10,000 people have been given rent supplement above the maximum limit. The protocol arrangement in place with Threshold continues to operate in the areas where supply issues are particularly bad, covering Dublin, Cork, Meath, Kildare, Wicklow and Galway city. The number of requests for increased rental payments for rent supplement customers has reduced dramatically following the introduction of the new limits in July. These measures along with the reforms to the private rental sector, notably that rent reviews can only take place if it has been two years or more since the previous review, will provide increased certainty and security for tenants and landlords. I am continuing to keep the matter of rent limits under close review.

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