Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

585. To ask the Minister for Environment, Community and Local Government in view of the fact that the current rates of housing assistance payment are below market rent in many areas, the action he is taking to ensure that those on the housing assistance payment are not forced to top-up the payment to meet their housing need. [5909/15]

Alan Kelly (Tipperary North, Labour)
Link to this: Individually | In context | Oireachtas source

One of the main causes of rising rents in some areas is a lack of supply in the market. The Social Housing Strategy 2020, which I published in November 2014, sets out clear, measureable actions and targets to increase the supply of social housing, while the implementation of the range of actions under the Government’s Construction 2020 Strategy will also support increased supply in the wider housing market. The implementation of the Housing Assistance Payment (HAP) is a key Government priority and a major pillar of the Social Housing Strategy 2020. The HAP scheme will bring all social housing supports provided by the State under the aegis of local authorities. The scheme will remove a barrier to employment by allowing recipients to remain in the scheme if they gain full-time employment. HAP will also improve regulation of the rented accommodation being supported and provide certainty for landlords as regards their rental income.

The statutory pilot phase of HAP commenced in September 2014 and is now in effect in 7 local authority areas, which are Limerick City and County, Waterford City and County, Cork County, Louth, Kilkenny, South Dublin and Monaghan. Some 800 households are in receipt of HAP at present across these 7 local authority areas. Dublin City Council is also part of the statutory HAP pilot with a specific focus on accommodating homeless households, as provided for in the Action Plan to Address Homelessness. Dublin City Council is implementing the HAP pilot for homeless households in the Dublin region on behalf of all 4 Dublin local authorities.

Section 43(2)(a) of the Housing (Miscellaneous Provisions) Act 2014 provides for the making of Regulations to prescribe the maximum rent limits for different household classes that will apply in each local authority where HAP has been commenced. In prescribing these limits, household size and prevailing rents in the relevant areas are taken into consideration. These limits are based on the current rent supplement limits as set out by the Department of Social Protection, in advance of the introduction of a national differential rents framework for local authorities, as provided for under section 31 of the Housing (Miscellaneous Provisions) Act 2009, later this year. I understand that the Department of Social Protection is currently finalising a review of maximum rent limits.

There is evidence of a growing pressure on rents in the lower segment of the market in some high demand areas. In the context of the implementation of HAP, my Department works closely with the Department of Social Protection, and continues to closely monitor trends in the housing market and the potential impacts on housing supply, including data gathered by HAP pilot authorities in relation to this issue. These factors are being carefully considered in the context of the further roll out of HAP and particularly in relation to any future changes to maximum rent limits that apply in local authorities where HAP is operating.