John Curran (Dublin Mid West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

418. To ask the Minister for Housing, Planning, and Local Government if the rents payable under the HAP scheme have been reviewed since being set in July 2016 in view of the fact that many local authorities are paying an enhanced or top-up rate; and if he will make a statement on the matter. [44745/17]

Eoghan Murphy (Dublin Bay South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Housing Assistance Payment (HAP) is a flexible and immediate housing support that is now available to all eligible households throughout the State. There are currently more than 28,000 households having their housing needs met via HAP and some 20,000 separate landlords and agents in receipt of HAP payments.

Recognising the pressures in the rental market, the Government increased the maximum rent limits available under the HAP scheme across the country with effect from 1 July 2016. Furthermore, additional flexibility above the existing HAP rent limits was made available to all HAP local authorities from the same date. 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. It is a matter for the local authority to determine if the application of the flexibility is warranted on a case by case basis.

The increased rent limits introduced by the Government last year, together with the additional discretion available to local authorities to exceed the maximum rent limit where necessary, are allowing HAP households to find suitable accommodation and willing landlords. On average in 2017, 348 additional tenancies are being supported by HAP each week. Particular additional targeted supports are available to homeless households in the Dublin and Cork City regions to assist them in finding accommodation in the private rental market, with the support of HAP. I recently confirmed that the Place Finder Service available in these local authorities will be rolled out to all other local authorities.

The Government has provided €152.7 million to fund the cost of HAP in 2017 and I am satisfied that this is sufficient to meet the targeted level of activity this year. Increasing the HAP rent limits in particular local authority areas could have further inflationary effects on the private rented sector, which could have a detrimental impact on the wider rental market, including for those households who are not receiving HAP support. From available data, at the end of Q2 2017, and excluding the additional discretion available to homeless households in the Dublin Region, 12.6% of HAP households nationally were benefiting from the flexibility to exceed the rent limits.

The data available to my Department at this time indicates that the current rent limits and the flexibility to exceed those rent limits provide local authorities with sufficient capacity to assist households in securing rented accommodation that meets their needs. I am satisfied with how the scheme is currently operating and I consider it to be a key vehicle for meeting housing need and fulfilling the ambitious programme under Rebuilding Ireland.  My Department will, of course, continue to keep the operation of the HAP scheme under review.