Catherine Murphy (Kildare North, Social Democrats)
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563. To ask the Minister for Housing, Planning, Community and Local Government the communications he has had with the Department of Health in respect of increasing the provision of rental properties, with a view to allowing the release of properties for rent where the properties are held over in respect of capital to underpin fair deal investment in respect of particular persons; his plans to develop an innovative scheme that will allow these unoccupied properties to be rented to a third party whilst held over for fair deal; if he will establish a scheme where any income in respect of these properties can be subject to tax and fund the person's care whilst accommodating a family where a housing need or emergency exists; the barriers he has identified to the provision of such a scheme; and if he will make a statement on the matter. [24703/16]

Simon Coveney (Cork South Central, Fine Gael)
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I am informed by my colleague, the Minister for Health, that the Nursing Homes Support Scheme (NHSS) is a system of financial support for those in need of long-term nursing home care. Participants contribute to the cost of their care according to their means while the State pays the balance of the cost. Participants in the Scheme contribute up to 80% of their assessable income and a maximum of 7.5% per annum of the value of assets held. In the case of a couple, the applicant’s means are assessed as 50% of the couple’s combined income and assets. The first €36,000 of an individual’s assets, or €72,000 in the case of a couple, is not counted at all in the financial assessment. The capital value of an individual’s principal private residence is only included in the financial assessment for the first three years of their time in care.

There is no prohibition on an NHSS participant renting out their home if they wish. Rental income is included in the overall calculation of the applicant’s contribution towards the cost of care. In addition, certain allowable deductions can be netted off against a person's means prior to the calculation of their contribution to care. These include health expenses, income tax, social insurance contributions and levies required by law such as the Local Property Tax, and borrowings in respect of the principal private residence.

With regard to increasing the supply of properties in the rental market, Rebuilding Ireland - Action Plan for Housing and Homelessnesshas set out a practical and readily implementable set of actions to create a functioning and sustainable housing system. The Plan is available at the website www.rebuildingireland.ie.

The Plan is divided into five pillars, with each targeting a specific area of the housing system for attention.

Pillar 4 of the Plan, entitled Improve the Rental Sector, commits to developing a comprehensive strategy for the rental sector in Q4 2016. The strategy will be structured around 4 key areas: security, standards, supply and services. All issues that affect the availability of dwellings in the rental market will be considered during the development of the strategy; issues in that regard in relation to homes owned by individuals supported by the NHSS will be considered in that context.

In terms of supply, the Plan commits to the introduction of a new affordable rental scheme to enhance the capacity of the private rented sector to provide quality and affordable accommodation for households currently paying a disproportionate amount of disposable income on rent. The objective of this scheme will be to provide long-term affordable accommodation for low to moderate income key-worker households in urban areas of high demand and provide an economic incentive to increase supply of rental accommodation. The actions under Pillar 4 also include a commitment to examine standards, costs and feasibility of Build-to-Rent on a large scale, and commission research on ways in which further investment might be encouraged.

The overarching objective of the rental strategy will be to increase supply and support the development of a stable, strong and viable rental sector offering true choice for households, investment opportunities for providers and reflecting the rights and responsibilities of tenants and landlords.