Written answers
Tuesday, 11 June 2024
Department of Housing, Planning, and Local Government
Rental Sector
Paul Kehoe (Wexford, Fine Gael)
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405.To ask the Minister for Housing, Planning, and Local Government if he will consider increasing the income threshold for HAP or introducing additional supports for people who are struggling to pay rent but whose income is above the threshold for HAP; and if he will make a statement on the matter. [25126/24]
Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Housing for All includes a commitment to review income eligibility for social housing.
From this review, completed in November 2021, it was recommended moving five local authorities from Band 3 to Band 2, ensuring the income eligibility thresholds better reflect housing costs in those counties. Government also agreed to increase the baseline income thresholds by €5,000 for all local authorities with effect from 1 January 2023. The thresholds thus increased to €40,000, €35,000 and €30,000 for bands 1, 2 and 3 respectively.
The review further recommended the commissioning of research to develop options for a revised or new social housing income eligibility model. My Department recently received this detailed research, commissioned by the Housing Agency. The scope of the research included examining the existing income limits in the context of current market and population conditions and the suitability or otherwise of the current framework having regard to the significantly changed landscape since the standardised income limits were introduced.
My Department will now undertake a detailed examination of the report, in order to develop a new social housing income eligibility model by Q4 2024 in line with the Housing for All Action Plan update. This detailed examination will include consultation with stakeholders and will look at, inter alia, how the social housing income limits system interacts with other housing supports and ensure that they continue to target households correctly.
In relation to supports outside the social housing system, launched as part of the Affordable Housing Act in 2021, Cost Rental housing is designed to assist middle-income households who do not qualify for social housing but who are facing affordability pressures in the private rental market. Cost Rental is a major step forward in providing much-needed affordable rental options to households with incomes above the limits set for social housing. The current eligibility limits for Cost Rental, checked at the point of applying for a tenancy, are net household incomes of no more than €66,000 in Dublin and €59,000 elsewhere.
The Housing for All strategy targets the delivery of 18,000 new Cost Rental homes by 2030. A strong pipeline is in place and under continuous development by Local Authorities, Approved Housing Bodies, and the Land Development Agency.
Pádraig Mac Lochlainn (Donegal, Sinn Fein)
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406.To ask the Minister for Housing, Planning, and Local Government if he can clarify if or when a rent pressure zone will be introduced in County Donegal to reflect the huge increases in rent over recent years. [25219/24]
Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The Planning and Development (Housing) and Residential Tenancies Act 2016, taking account of the constitutionally protected property rights of landlords, introduced a targeted Rent Predictability Measure to moderate rent increases in those parts of the country where rents are highest and rising fastest. Rent controls are applied on the basis of the objective evidence available via the RTB Rent Index quarterly report. Approximately, 80% of tenancies across the country are subject to rent controls.
Section 24A of the Residential Tenancies Acts 2004-2022 (the Acts) provides that the Housing Agency, in consultation with housing authorities, may make a proposal to me, as Minister, that an area should be designated as a Rent Pressure Zone (RPZ). Following receipt of such a proposal, I, as Minister, request the Director of the Residential Tenancies Board (RTB) to conduct an assessment of the area to establish whether or not it meets the criteria for designation and to report to me on whether the area should be designated as a RPZ.
The criteria to be satisfied by an area under section 24A(4) of the Acts for designation as an RPZ are as follows:
- the information relating to the area, as determined by reference to the information used to compile each RTB Rent Index quarterly report, shows that the annual rate of increase in the average amount of rent for that area is more than 7% in each of at least 4 of the 6 quarters preceding the period immediately prior to the date of the Housing Agency's proposal, and
- the average rent for the area in the last quarter, as determined by reference to the information used to compile each RTB Rent Index quarterly report, is –
- in the case of counties Kildare, Meath and Wicklow or a local electoral area (LEA) in any one of those counties, above the average rent in the State, excluding rents in the 4 Dublin Local Authority areas, or
- in the case of any LEA outside of the Greater Dublin Area (i.e. Dublin, Kildare, Meath and Wicklow), above the average rent in the State excluding rents in the Greater Dublin Area.
The data from the Rent Index quarterly report for Q4 2023 relating to the local electoral areas (LEA) of County Donegal is detailed in the table below:
Local Electoral Area (LEA) | Quarters >7% | Standardised Average Rent in New Tenancies | Standardised Average Rent in Existing Tenancies |
---|---|---|---|
Glenties | * | * | €560 |
Milford | * | * | €710 |
Carndonagh | * | * | €540 |
Buncrana | * | * | €692 |
Donegal | * | * | €674 |
Letterkenny | 6 | €1,073 | €812 |
Lifford-Stanorlar | 5 | €873 | €607 |
*Note: indicates that rents in areas with fewer than 30 observations are not published for statistical reasons.
While Letterkenny LEA has had 6 quarters and Lifford-Stanorlar LEA has had 5 quarters of rent increases above 7%, the Standardised Average Rents for these LEAs have not risen above the Non-GDA Standardised Average Rent in New Tenancies of €1,225, thereby not satisfying the criteria for designation as an RPZ at this time.
The Housing Agency and the RTB continue to monitor national rents and if any LEA in County Donegal meets the designation criteria, it will be designated as a RPZ through the process outlined above. Equally, if the entire County of Donegal meets the designation criteria, it will be designated as a RPZ.
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