Written answers

Thursday, 7 December 2017

Department of Housing, Planning, and Local Government

Housing Assistance Payment Data

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

272. To ask the Minister for Housing, Planning, and Local Government the outcome of the review of HAP rates and maximum rent levels undertaken in summer 2017; and if he will make a statement on the matter. [52470/17]

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

274. To ask the Minister for Housing, Planning, and Local Government if he has systematically collated data in order to understand the current barriers facing a single person household securing a tenancy in a one bedroomed apartment within the proscribed HAP limits for renting a property on the private rented market; and if he will make a statement on the matter. [52472/17]

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

I propose to take Questions Nos. 272 and 274 together.

The Housing Assistance Payment (HAP) Scheme plays a vital role in housing eligible families and individuals. There are currently more than 30,000 households having their housing needs met via HAP and over 20,000 landlords and agents in receipt of HAP payments. HAP is a flexible and immediate form of social housing support that is available to all eligible households across the State. A summary of the household classes supported by the HAP scheme at the end of Q3 2017 is set out below, which indicates that single and single sharing households are able to access accommodation suitable to their needs in the private rented market via HAP:

- Single/ Single Sharing - 30%

- Couple/ Couple Sharing - 4%

- Lone Parent with Children - 40%

- Couple with Children - 26%

The increased rent limits introduced by this 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.  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.

From available data, at the end of Q3 2017, approximately 20% of the total number of households being supported by HAP were benefiting 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, 14.4% of households nationally were benefiting from the additional flexibility. In those cases, the average rate of discretionary payment being used was 14.9% above rent limits provided.

The Strategy for the Rental Sector, published in December 2016, recommended the introduction of a Rent Predictability Measure to moderate rent increases in those parts of the country where rents are highest and rising - where households have greatest difficulties in finding accommodation they can afford. The Planning and Development (Housing) and Residential Tenancies Act 2016 provided for the Rent Predictability Measure and for areas, called Rent Pressure Zones (RPZs), where rents can now only rise by a maximum of 4% annually for a period of three years.

This measure was implemented immediately in the four Dublin local authority areas and in Cork City as these areas already met the criteria for a Rent Pressure Zone in December 2016. A further 12 Local Electoral Areas (LEAs) were designated in January 2017, with the measure further extended to Maynooth and Cobh LEAs in March 2017 and to Drogheda and Greystones LEAs in September 2017.

My Department and I are constantly monitoring HAP data, as well as other key information relating to the private rental market. Indications are that the current HAP 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. 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. Based on the data outlined above, I am currently satisfied that the maximum rent limits, together with the additional flexibility available to local authorities, are generally sufficient to meet the demand of the rental market in these areas.

I am satisfied with how the HAP 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.

Comments

No comments

Log in or join to post a public comment.