Written answers

Tuesday, 17 October 2017

Department of Housing, Planning, and Local Government

Housing Assistance Payment Data

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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599. To ask the Minister for Housing, Planning, and Local Government further to Parliamentary Question No. 241 of 21 September 2017, the average monthly rent paid to landlords under the HAP scheme in each of the years since the inception of the scheme; the annualised cost of the average monthly rent paid to landlords under HAP for the local authorities in counties Dublin, Wicklow and Kildare; and if he will make a statement on the matter. [43398/17]

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael)
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Under the Housing Assistance Payment scheme (HAP), a tenant sources their own accommodation, the tenancy agreement is between the tenant and the landlord and is covered by the Residential Tenancies Act 2004 (as amended). There are currently more than 28,000 households having their housing need met by HAP across the State and some 20,000 separate landlords and agents currently in receipt of monthly HAP payments. The HAP scheme is funded through a combination of Exchequer monies and tenant differential rents collected in respect of HAP tenancies. Exchequer funding for the scheme increased from €57 million in 2016 to more than €152 million in 2017. This increase is in order to meet the continuing costs of existing HAP households, and the costs of supporting an additional 15,000 households this year.  Budget 2018 has made an additional €149 million available for HAP next year, increasing the overall exchequer provision to more than €301 million, when an additional 17,000 households are targeted for support.

Accommodation sourced by eligible households should be within the prescribed maximum HAP rent limits, which are based on the household size and the rental market within that area.  Each local authority has statutory discretion to agree to a HAP payment up to 20% above the prescribed maximum rent limit in circumstances where it is necessary, because of local rental market conditions, to secure appropriate accommodation for a household that requires it.  Additional discretion to exceed the rent limits by up to 50% is available to assist in housing homeless households in the Dublin Region.  It is a matter for the local authority to determine if the application of the flexibility is warranted on a case by case basis. Local authorities must also be cognisant of the rent certainty and control provisions  of the Residential Tenancies Act when approving increases in HAP payments and advise tenants accordingly.

From available data, at the end of Q.2 2017, 17.8% of the total number of households  being supported by HAP were benefitting from the additional flexibility that was provided to local authorities to exceed the maximum rent limits.  When the additional discretion available to homeless households in the Dublin Region is removed, 12.6% of households nationally were benefitting from the additional flexibility. The data available to my Department at this time indicates that the current rent limits and the flexibility to exceed those rent limits, provides local authorities with sufficient capacity to assist households in securing rented accommodation that meets their needs. My Department continues to keep the operation of the HAP scheme under review. I am satisfied with how the HAP scheme is operating and I consider it to be a key vehicle for meeting housing need and fulfilling the ambitious programme under Rebuilding Ireland. 

HAP has been in operation in South Dublin County Council since 1st October 2014 and became operational in the remaining three Dublin Areas - Dublin City Council, Fingal County Council on 1st March 2017. The Homeless Pilot of the HAP scheme has been operational since February 2015, across the four housing authorities in the Dublin Region and is being implemented through the Dublin Region Homeless Executive (DRHE). HAP became operational in Kildare County Council in November 2015 and in Wicklow County Council in December 2016. 

The average monthly rent paid to landlords under the HAP scheme in each of the years since the introduction of the scheme and the annualised cost of the average monthly rent paid to landlords under HAP for the local authorities in counties Dublin, Wicklow and Kildare are set out in the following table.

Dublin local authorities (South Dublin, Dublin City, Dun Laoghaire Rathdown and Fingal County Council, inclusive of Homeless HAP in each case)

YearTotal HAP tenancies set-upAverage monthly payment paid to landlords under the HAP scheme at year end Annualised cost* of the average monthly payment paid to landlords under the HAP scheme
20148€390 €3,511 
2015626€916€10,992
20161,791€1,192€14,304
2017

(end Q2)
1,687€1,269€15,228
Kildare
YearTotal HAP tenancies

set-up
Average monthly payment paid to landlords under the HAP scheme at year end Annualised cost* of the average monthly payment paid to landlords under the HAP scheme
201532€927€11,124
2016773€885€10,620
2017

(end Q2)
407€899€10,788
Wicklow
YearTotal HAP tenancies

set-up
Average monthly rent paid to landlords under the HAP scheme at year end Annualised cost* of the average monthly rent paid to landlords under the HAP scheme
20163€750€9,000 
2017

(end Q2)
173€944 €11,328
*The annualised cost is calculated on the basis that the average cost at year end was paid every month for twelve months.

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