Written answers

Thursday, 21 April 2016

Department of Environment, Community and Local Government

Rental Accommodation Scheme Criteria

Photo of Maureen O'SullivanMaureen O'Sullivan (Dublin Central, Independent)
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119. To ask the Minister for Environment, Community and Local Government her plans to alter the requirements to qualify for the rental assistance payment scheme (details supplied); her views on whether, with the lack of rent management, this scheme should be altered to accommodate more persons. [7889/16]

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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The Rental Accommodation Scheme (RAS) has two key objectives, namely, the elimination of dependence on the Department of Social Protection’s Rent Supplement by persons assessed as being qualified for and in need of social housing support, and the enhancement of the position of local authorities to respond to social housing need. RAS is a social housing support targeted primarily at those already in receipt of Rent Supplement for over 18 months.

The Government’s Social Housing Strategy 2020 – Support, Supply and Reformrecognises that RAS continues to be a successful programme that has achieved considerable output levels to date and delivered quality housing to a large number of households. Over the lifetime of the Strategy, an additional 6,000 households are targeted to transfer from Rent Supplement to RAS.

The long term vision for Rent Supplement is the transition of households with an established housing need to the Housing Assistance Payment (HAP). HAP which is being introduced incrementally on a pilot basis to local authority areas enables local authorities to immediately provide housing assistance for households who qualify for social housing support, including many long-term Rent Supplement recipients.

Similar to the RAS, the HAP Scheme will facilitate the removal of a potential barrier to employment by allowing recipients to remain in the scheme if they gain full-time employment. HAP commenced in September 2014 and some 8,500 households are currently being supported by the scheme. HAP is now available to all qualified households in 19 local authority areas. Until such time as HAP becomes operational in the remaining local authority areas, Rent Supplement will continue to be available to those households requiring support in meeting their housing needs in the rental market.

In terms of rent limits that apply in respect of Rent Supplement, I understand that the Department of Social Protection undertook a review of these limits in 2015 and found that the impact of increasing limits at a time of constrained supply in the private rented market will increase costs disproportionately for the Exchequer with little or no new housing available to recipients. The Department of Social Protection has instead implemented a targeted policy approach that allows for flexibility where landlords seek rents in excess of the limits for both existing customers and new applicants to the Rent Supplement scheme. The circumstances of tenants are considered on a case-by-case basis and rent supplement levels are increased above prescribed limits, where appropriate. In addition, the Department of Social Protection, in conjunction with Threshold, operates a special protocol in the Dublin and Cork areas where supply issues are particularly acute, with plans underway to extend this to other urban and commuter areas. This flexible and targeted approach assists Rent Supplement households nationwide to retain or acquire rented accommodation through increased rent supplement payments.

It is also worth noting that in the context of supply in the private rented market, the Equal Status Act 2000 has recently been amended to prohibit discrimination in the letting of residential property to people who are in receipt of Rent Supplement or Housing Assistance Payment (HAP). Persons who feel they have been discriminated against by on the housing assistance ground, or any other protected ground, in relation to the provision of accommodation may wish to contact the Irish Human Rights and Equality Commission or make a complaint under the Equal Status Acts to the Workplace Relations Commission.

In addition, in a new measure, landlords who rent to tenants in receipt of rent supplement or social housing supports may avail of increased tax relief with effect from 1 January 2016.  To qualify, landlords must undertake to make the accommodation available to qualifying tenants for a minimum of three years, and the undertaking must be registered with the Residential Tenancies Board (RTB).  Qualifying property owners can claim 100 per cent relief on their mortgage interest, as an expense against rental income.

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