Social housing rent increases may be needed, Cork City Council warns

Tenants’ groups have reacted strongly against the suggestion that rent increases might be in prospect for some of Cork City Council’s thousands of social housing tenants.

The council’s deputy chief executive, Brian Geaney, warned that rent increases might be necessary to finance changes to the delivery of maintenance but that any such changes would be “poverty proofed”.

Mr Geaney said a new maintenance programme would require "substantial investment". While he was hopeful that some funding would be provided by central government, he said the council would also need to consider how it could finance elements of the programme itself.

He said: “The likely proposed changes to how the maintenance service is delivered may result in increased rents but any likely increase will be very cognisant of the most vulnerable tenants and will be poverty proofed.”

Cork City Council operates a differential rents scheme, which was introduced by Philip Monahan, the city’s first manager, a century ago. This means rent payable is calculated on the household income and will reduce or increase based on fluctuations in income when notified to the council.

The average weekly council rent is €80.56.

The local authority’s annual €147m-plus housing budget includes €21m for housing maintenance, and the council is on track to receive 11,000 repair requests this year.

Workers’ Party councillor Jerrica Struthers said she had spoken with tenants’ groups across the city, and they intended to “fight tooth and nail” against any rent increase.

“The council already collects €32m annually in rent, and fancy corporate jargon like ‘poverty proofing’ is just a cover story for demanding more cash from families already struggling to put food on the table,” she said.

Elizabeth Hayes, spokesperson for the Árdbhaile residents’ group in Mayfield, said she was speaking on behalf of tenants who had to live with mould, damp, and heating issues.

“People cannot afford a rent increase due to living with so many housing issues, yet nothing gets done,” she said.

Anita Downey, who lives in the neighbouring Glenamoy Lawn, accused the council of “expecting single mothers to live off of beans and toast”.

“The cost of living has gotten so high and now they’re talking about raising the rent,” she said.

Northside Sinn Féin TD Thomas Gould said raising rents would hurt older people and vulnerable children the most.

“For some families, it will mean cutting back on basics and for others, with nothing left to cut back on, it will mean a cold and hungry winter,” he said.

If Cork City Council need additional funding they should look to central government.

Fianna Fáil councillor Tony Fitzgerald, who is chair of the council’s housing strategic policy committee, said when the council returns after the summer recess at the end of August, he expected budget discussions to begin, adding that consultations with councillors will be “crucial”.

“We will of course bear in mind the needs of those of our tenants who are struggling at the minute and have very little disposable income,” he said.

“That will have to be taken onboard in any review that might be proposed by the executive.” 

Independent councillor Kieran McCarthy, a member of the housing SPC, said he welcomed the proviso that any potential rent increase would be poverty proofed, and had faith in the deputy chief executive.

“Housing maintenance is just one piece of the budgetary puzzle, and everything will be up for discussion, but Brian Geaney is a good guy and if there’s money to be found, he will find it; he has a good relationship with the Department of Housing,” Mr McCarthy said.

Mr Geaney’s interview is part of a three-day series on social housing, which was funded by the Local Democracy Reporting Scheme.