Written answers

Wednesday, 29 July 2020

Department of Housing, Planning, and Local Government

Housing Issues

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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143. To ask the Minister for Housing, Planning, and Local Government the progress that has been made in the roll-out of the cost rental housing model in counties Laois and Offaly. [19259/20]

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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144. To ask the Minister for Housing, Planning, and Local Government if the cost rental model in counties Laois and Offaly will be rolled out. [19260/20]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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I propose to take Questions Nos. 143 and 144 together.

The Programme for Government, Our Shared Future, commits to improving security and affordability for renters. To achieve that, we will develop a Cost Rental model for delivery of housing that creates affordability for tenants and a sustainable model for construction and management of homes. Cost Rental is housing where the rents charged cover the cost of delivering, managing, and maintaining the homes only. Cost Rental is not intended to overlap with or replace traditional social housing for low-income households.

In 2019 an inter-departmental multi-agency Cost Rental Working Group was convened in order to assess methods for the consistent and sustainable delivery of Cost Rental at scale. The Group brings together representatives of relevant Government Departments, State agencies, and local government. The Group is evaluating potential funding models and operational matters such as tenant eligibility. This work will be assisted by a recently initiated research consultancy sponsored by the European Investment Bank (EIB) on behalf of my Department. The EIB has extensive experience in supporting the delivery of affordable housing across Europe and the Report is scheduled for completion in December.

A number of initial projects are already being progressed. Ireland's first Cost Rental development is currently under construction at Enniskerry Road, Stepaside, Dún Laoghaire-Rathdown. The project is being undertaken by the Tuath and Respond Approved Housing Bodies, with the assistance of DLR County Council. A second pilot project sponsored by my Department is under development for a site at Emmet Road, Inchicore (the former St Michael’s Estate). The project is being led by Dublin City Council, which owns the site, and is currently at the design stage. Another proposed Cost Rental development is at Shanganagh Castle, Shankill, Dún Laoghaire-Rathdown, where DLR County Council is working in partnership with the Land Development Agency on the Council-owned site. Planning permission for this development was granted on 13 July.

These initial projects are located in densely populated urban centres where rental affordability pressures are particularly acute. I plan to outline further details around Cost Rental in the autumn, taking on board the initial input from the Working Group and the experience from the pilot projects, as part of a broader announcement on affordable housing.

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