Written answers

Thursday, 19 December 2013

Department of Social Protection

Rent Supplement Scheme Eligibility

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)
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168. To ask the Minister for Social Protection if her attention has been drawn to the fact that rents have increased significantly in parts of County Kildare in recent months; if her further attention has been further drawn to the extent to which this is impacting on the extent of homelessness in County Kildare where the housing waiting list is in excess of 7000 individuals or families; if she will relax the rent caps; and if she will make a statement on the matter. [54831/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The purpose of the rent supplement scheme is to provide short-term support to eligible people living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other 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. There are currently approximately 80,000 persons in receipt of rent supplement for which the Government has provided €403 million in 2013.

Revised rent limits under the rent supplement scheme have come into force with effect from Monday 17 June 2013 and will be in place until 31 December 2014. The new rent limits have been determined following an extensive review of the private rental market based on the most up-to-date data available. The Department currently funds up to 30% of the private rented sector so it is essential that the rent limits are kept under review. The new rent limits have been set using the 35th percentile ensuring that sufficient housing is available for recipients of the scheme.

Under the revised rent limits, there have been increases in the maximum rent limits in Dublin while there have been some reductions across a number of rural counties reflecting the conditions in the rental markets in those counties. Separate to the county limits, higher rent limits have also been provided for in the commuter areas of North Kildare and Bray.

Recently released figures from the Private Residential Tenancies Board, shows that current rent limits are providing adequate supply levels for both North Kildare and County. The rent limits in place reflect Kildare’s current rental levels agreed between landlord and tenant. It is recognised that there is a general shortage of rental property available for North Kildare, and to a lesser degree the rest of the County, however, this is in line with national trends and has been factored into the current rent limits in place.

A key goal of the most recent review was to continue to ensure that rent limits do not distort local market conditions and allow natural levels of supply and demand to set realistic rental values. This is an especially important for low income working families, that is, to ensure that these families are not priced out of an area of their choice due to unrealistic, too high rental limits. The Department continues to monitor rent levels throughout the county. I have no plans to further revise rent limits at this time.

Policy in relation to social housing provision and housing lists are a matter for the Minister for Environment, Community and Local Government.

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