Dublin: The Housing Department has announced that the government’s cost rental scheme will raise the income limit for applicants to €66,000 in Dublin and €59,000 outside the capital. This is based on income after tax.
The €750 million scheme is intended to address the severe challenges that renters face. The cost-rental scheme will help people who are struggling to pay their rent on incomes above the social housing threshold.
Through the new scheme, it is hoped that houses will be available for 25% less than the market rent. The government aims to provide 4,000 such houses by 2027. The rent of the houses under this scheme will be determined based on the cost of building and maintaining the houses and not based on the market rates.
The scheme also increased the subsidy provided to Authorised Housing Bodies (AHBs) from 45 percent to 55 percent of the capital cost. The government believes that by doing so, it will be possible to keep the rental rate below 25%.
It was previously stated that families earning up to one lakh euros before taxes would be eligible for the scheme. But the income limit in the scheme did not reach that level. There is a requirement in the new scheme that the total family salary should not exceed 80,000–90,000 euros. Families with incomes greater than 53,000 euros after tax were previously excluded.
Hundreds of cost rental houses are provided by government agencies. But no homes have been provided in Dublin City for the past two years. No subsidies have been given to the private sector, either. According to the department, planning permission has been obtained for more than 40,000 homes in Dublin alone, but construction has yet to begin.
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