Dáil debates
Tuesday, 1 July 2025
Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions
Housing Schemes
9:05 am
Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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6. To ask the Minister for Housing, Planning, and Local Government his views on the growing unaffordability of cost-rental schemes funded by his Department; the measures he intends to take to address this growing unaffordability; and if he will make a statement on the matter. [36136/25]
James Browne (Wexford, Fianna Fail)
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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.
9:15 am
Thomas Gould (Cork North-Central, Sinn Fein)
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The Minister stated the Government has delivered 3,600 units. That sums up its delivery. There were no cost-rental units in 2020. There were 65 in 2021, 684 in 2022, 869 in 2023 and 2,027 last year. That is still below the Government's targets. The Government has never delivered and has in fact missed every target it has set over the past four or five years. On top of that, in respect of so-called affordable cost rental properties, in O'Devaney Gardens tenants are paying from €1,490 to €1,900. In Donabate, they are paying between €1,327 and €1,547. In Lota More,Cork, rents are between €1,200 and €1,407. It is not affordable if people are paying more than a third of their income in rent, no matter what the Government wants to call it.
James Browne (Wexford, Fianna Fail)
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I thank the Deputy. As he is fully aware, the cost-rental scheme did not exist in 2020 and that is why no units were delivered. On cost rental, some people cannot afford those rents and that is why we are providing a number of different solutions for people in order for them to access the homes they need at an affordable price. That may be purchase or rent and may involve cost rental, affordable purchase or social housing. We are trying to sure that everybody, at whatever income level, has housing available to them. We are doing that across the system. The number of cost-rental units has increased over the past number of years. It is an important measure, albeit only one, of Housing for All and delivering the housing we need for people across the country, whatever their needs may be.
Thomas Gould (Cork North-Central, Sinn Fein)
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The Minister referred to people on moderate incomes and viability. There are people who cannot get on the social housing list because they earn too much, but they are not earning enough to qualify for cost rental because the rent is more than one third of their income. Individuals, couples and families are trapped in the middle. They are earning too much for social housing and not enough for cost-rental or affordable housing. What is the Government going to do about that? How will it help those people? The Government put those rents in place.
The Minister referred to rents which are 25% below the market value. Last week, the Government made a decision to drive rents up over the next number of years with its housing policy. Rents which are 25% below market value do not make a cost-rental property affordable. All it does is reduce rents by 25% for unbelievably expensive properties. Affordability means that people can afford to rent. It is not that someone's rent is 25% below the market value. A lot of people cannot afford these rents.
James Browne (Wexford, Fianna Fail)
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Last week, we extended rent pressure zones across the entire country, effectively creating a national rent control, which the Deputy voted for. In terms of the 25% before market-----
Thomas Gould (Cork North-Central, Sinn Fein)
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There was no vote taken.
Christopher O'Sullivan (Cork South-West, Fianna Fail)
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The Deputy supported it.
Thomas Gould (Cork North-Central, Sinn Fein)
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I will correct the Minister-----
James Browne (Wexford, Fianna Fail)
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Did the Deputy oppose it then?
Thomas Gould (Cork North-Central, Sinn Fein)
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If I said something like that the Minister would-----
James Browne (Wexford, Fianna Fail)
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We are in a housing crisis. Coming in here and being snide is not the solution. If the Deputy will let me give the answer-----
Thomas Gould (Cork North-Central, Sinn Fein)
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I had solutions two weeks ago.
Rory Hearne (Dublin North-West, Social Democrats)
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We supported the extension of RPZs but not the increase in rents. We did not support that.
James Browne (Wexford, Fianna Fail)
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I clarified what the Deputy said. We did come in here. I will deal with the Deputy's question rather than shouting over him.
Ruairí Ó Murchú (Louth, Sinn Fein)
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We have clarity now. We can move on.
James Browne (Wexford, Fianna Fail)
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Cost rental is only one measure, as I have already outlined.
Thomas Gould (Cork North-Central, Sinn Fein)
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What about the people in the middle?
James Browne (Wexford, Fianna Fail)
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We are putting measures in place in order that everybody has the solution they need. Ultimately, we have to increase the supply of housing across the country. That is the only way we will address homelessness, high rents and ensure that people get the homes they need. We have gone from 20,000 to 30,000 homes. We will make the next step change. That is why we made rapid decisions over the past number of months and will do so again over the next few months. Rather than coming in here and criticising everything we do, perhaps the Deputy could come up with a few solutions.
Thomas Gould (Cork North-Central, Sinn Fein)
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I brought solutions to the House three weeks ago. The Government voted against that.
James Browne (Wexford, Fianna Fail)
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Cost rental is only one measure, as I have already outlined.