The income criteria for the cost rental pilot projects being undertaken

QUESTION

To ask the Minister for Housing; Planning and Local Government the income criteria for the cost rental pilot projects being undertaken; and if he will make a statement on the matter.

REPLY

Against the background of the affordability pressures which currently exist in the rental market, the Government is determined to make cost rental a major part of the Irish housing system, similar to the role it plays in many other European countries.  Under this approach, rents are set at levels to recover the construction costs and to facilitate the management and administration of developments, but with only a minimal profit margin included.
 
A pilot project is currently being progressed by Dún Laoghaire-Rathdown County Council, at Enniskerry Road in Dundrum, in conjunction with the Housing Agency and Approved Housing Bodies, using land owned by the Agency.
 
Learning from the initial experiences in the pilot scheme, my Department is working with the European Investment Bank and other key stakeholders with a view to developing the first major cost rental project in Dublin city. Initial feasibility analysis is underway with a view to identifying a major project for immediate progression, with a broader programme of cost rental projects across Dublin and other cities to follow.
 
I announced new measures in January of this year that are specifically targeted at delivering more affordable homes to households generally with maximum income of €50,000 for single applicants and €75,000 for joint applicants. The income criteria for access to a cost rental scheme will take into account the broader policy development on affordable housing.