James Browne (Wexford, Fianna Fail)

Cost rental is a key element of the Housing For All strategy to improve affordability in the rental sector and to provide secure, long-term homes for moderate-income households. Though it was only introduced in 2021, cost-rental delivery is accelerating, with over 3,600 homes delivered by the end of 2024 and a substantial pipeline is now in place.

My Department is providing significant funding to delivery partners for cost rental. As well as making delivery viable, this State funding drives down rents. All cost-rental projects must achieve cost-covering rents that are at least 25% below comparable market levels. All cost-rental homes therefore present a significant saving to the tenant, relative to new market rental properties.

Cost rents are different depending on the size of dwelling and location as these have different capital costs. As rents for cost-rental homes are set according to the actual costs of delivering, managing, and maintaining the homes, recent inflation in costs has proven challenging.

All delivery partners are actively managing costs to ensure that these new homes are provided at the best rent possible.

For example, last week I attended the launch of the new cost-rental homes being provided by South Dublin County Council with the support of just under €20 million from my Department at Innovation Square, Tallaght, with rents starting at €950 per month.

Cost-rental units provide a significant saving of the tenant and tenants who benefit from cost-rental homes are very appreciative of the rents and security of tenure these homes provide.

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