Written answers

Thursday, 26 April 2012

Department of Social Protection

Social Welfare Benefits

8:00 pm

Photo of Gerald NashGerald Nash (Louth, Labour)
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Question 110: To ask the Minister for Social Protection if she will release a detailed analysis of the report commissioned by her Department in 2011 on the rental sector as it pertains to County Louth; and if she will make a statement on the matter. [20982/12]

Photo of Gerald NashGerald Nash (Louth, Labour)
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Question 111: To ask the Minister for Social Protection if she will consider reviewing the rent limit for Drogheda, County Louth, in view of its proximity to Dublin as was done recently with Bray, County Wicklow; and if she will make a statement on the matter. [20983/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 110 and 111 together.

The purpose of the rent supplement scheme is to provide short-term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources and who do not have accommodation available to them from another source. The overall aim is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer.

As the Department currently funds approximately 40% of the private rented sector it is essential that State support for rents are kept under review, reflect current market conditions and do not distort the market in a way that could increase rent prices for others, such as low paid workers and students.

New maximum rent limits came into force on 1 January 2012 and are in place until June 2013. These new limits are in line with the most up to date market data available. The emphasis of the rent limit review was to ensure that maximum value for money for tenants and the taxpayer was achieved whilst at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation.

The report referred to by the Deputy is available on the Department's website at the link http://www.welfare.ie/EN/Policy/ResearchSurveysAndStatistics/Pages/rentreview2011.aspx

For all counties, all major urban population centres were tested as part of the review to ensure that rent supplement applicants can access temporary housing arrangements whilst seeking employment opportunities. In County Louth, availability of rental property in Drogheda and Dundalk was tested during this analysis.

The Department will continue to monitor rent levels throughout the country but at this point I have no plans to revise any of the existing rent limits.

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