Income limit for cost-rental scheme increases to €66,000 in Dublin

By Gráinne Ní Aodha, PA

New increased income thresholds for the Government’s cost-rental scheme come into effect from Tuesday – with a higher limit in place for those based in Dublin.

The maximum net household income limit will be increased from €53,000 across the country to €66,000 for those in Dublin and €59,000 for the rest of the country.

The Minister for Housing said the rise reflects the difficulty people are having with high rents.

The new limits were announced as part of the Government’s launch of the €750 million Secure Tenancies and Affordable Rent (Star) investment scheme last month.

It aims to boost the supply of cost-rental accommodation by providing equity to address viability challenges faced by developers.

The cost-rental scheme is aimed at people who are above the threshold to qualify for social housing but have difficulty affording rents in the private sector.

It provides rents at 25 per cent below the market rate and a tenure of at least 40 years in length.

The new thresholds will apply to all those supplying cost-rental accommodation, including Approved Housing Bodies (AHBs), local authorities and the Land Development Agency.

There are other criteria people must meet, such as not being in receipt of social housing supports or already owning a property.

Minister for Housing Darragh O’Brien said the changes recognise that “significant inflation, interest rates and prevailing rents in the private market have all increased”.

“These changes will result in more families and individuals being able to avail of cost rental,” he said.

He added: “Government are focused on increasing the number of cost rental homes which will ultimately have a positive impact on the overall rental market.

“We want to see thousands more safe and secure cost rental tenancies in place and the announcement last week of the new Star investment scheme will help us to do just that.”