Dublin City Council to raise social housing rents by up to 50% for some

Ellen O'Donoghue

Dublin City Council passed its budget on Monday night, voting to bring in controversial rent increases for council tenants next year.

A large number of representatives voted against its passage, over rent increases for council and HAP tenants, which will come into effect next year.

The rise will affect up to 40,000 households rented out by the local authority or containing HAP recipients.

Some tenants could face rises of up to 50 per cent, with the amount of additional rent being calculated on the basis of their income.

Dublin City Council officials have said the hikes are necessary to carry out much-needed maintenance on social housing properties.

Following a heated debate, councillors voted 31 to 30 in favour of the motion.

Lord Mayor Ray McAdam said the rise was necessary to make the system fairer and generate money for the council's ageing housing stock.

People Before Profit councillor Conor Reddy proposed that instead of increasing rents, commercial rates should be increased by 15 per cent, The Irish Times reported.

He suggested a fund be set up to supplement this cost for businesses with rates bills under €100,000. His amendment was defeated by 31 votes to 28.

For the first time in 30 years, the council is changing how it calculates rents so higher earners pay more. Despite this, tenants of all incomes can expect increases.

The move follows an analysis of tenant incomes, which found more than a fifth of council households have an after-tax income of greater than €1,000 a week. These households pay heavily subsidised rents, with the average charge across the scheme €83 per week.

While the new system would result in increases across the board, it is envisaged that the lowest-income tenants will pay about 10 per cent more, with the rents of higher earners increasing at a greater rate, according to The Irish Times

“The measures we’ve introduced focused on protecting those on the lowest incomes,” Mick Mulhern, the council’s head of housing, said.