Rental Sector

Tuesday, 1 July 2025

Questions (437, 439)

Conor Sheehan

Question:

437. Deputy Conor Sheehan asked the Minister for Housing, Local Government and Heritage if he will immediately commence section 31 of the Housing (Miscellaneous Provisions) Act 2009, in order to restore rent-setting for local authority housing to a reserved function of elected councillors, as originally intended under the 2009 Act; the reason, in the absence of commencement, each local authority chief executive retains the power to set rents independently—without democratic input—leading to inconsistent policies across the country and a lack of transparency; his views on the recent Galway City Council case, where a proposed 3% rent increase and major reforms to the rent model were presented under executive function without councillor approval; if he will address concerns about these changes being introduced during a time of sustained inflation and hardship for low-income tenants; if the ongoing delay in completing the national rent scheme review still justifies withholding the commencement of section 31 of the 2009 Act; and if he will make a statement on the matter. [35236/25]

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Aengus Ó Snodaigh

Question:

439. Deputy Aengus Ó Snodaigh asked the Minister for Housing, Local Government and Heritage when setting the weekly rent for social housing, the incomes sources (wages, gross or net, private pension, maintenance payments, social welfare payments, children’s allowance, carer’s support grants, fuel allowance, living alone allowance, and so on) that the AHBs and the councils are permitted to take into account when calculating the sum on which the differential rent formula applies; if there are different formulae for different AHBs or councils; and if he will make a statement on the matter. [35251/25]

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Written answers

Minister for Housing, Local Government and Heritage

I propose to take Questions Nos. 437 and 439 together.

Local authorities set and collect rents on their dwellings in accordance with section 58 of the Housing Act 1966. The making or amending of such rent schemes is generally a matter for local authorities within broad principles set out by my Department, including that rent levels should be based on income and reflect tenants’ ability to pay. Local authority rent schemes also contain hardship clauses which can be used to support households experiencing financial difficulties. Approved Housing Bodies (AHB), also called housing associations or voluntary housing associations are independent, not-for-profit organisations, and most set rents in accordance the relevant local authority scheme.

Section 31 of the Housing (Miscellaneous Provisions) Act 2009, which has not been commenced, provides for the introduction of a national rent scheme and for the making of such a rent scheme to become a reserved function. My Department completed an initial scoping exercise to consider the introduction of a national local authority social housing rent model. This is a complex area and requires detailed and careful analysis and further work is required to consider the practical application of such a framework.

Local discretion and flexibility are inherent in the devolved administration of rent schemes and different approaches are taken to rent setting across local authorities. Accordingly, decisions regarding the sources of income included and disregarded for rent assessment purposes are matters solely for individual local authorities and is an executive function. However, it should be noted that rent setting is considered indirectly by the elected members through the annual estimates process with differential rents comprising a significant portion of local authority revenue.