Dáil Éireann Debate, Thursday - 18 December 2025
508. Deputy Seán Ó Fearghaíl asked the Minister for Housing, Local Government and Heritage the key measures taken to expand cost rental during 2025; his priorities for 2026; and if he will make a statement on the matter. [73538/25]
View answerAffordability and the chance to own a home is at the heart of Government’s housing policy, as embodied within the new housing plan, Delivering Homes, Building Communities 2025 – 2030. The plan reinforces and expands the range of existing measures being implemented by Government to tackle the issues of supply and affordability, thereby supporting the increased provision of new homes to purchase and rent.
Cost Rental is a key element of the Government's strategy to improve affordability in the rental sector and to provide secure, long-term homes for moderate-income households above the income limits for social housing. The core principle is that rents cover the development, management, and maintenance costs of the homes, so that their long-term future is secure, without rents being subject to the pressures of the open market.
As rents depend on actual delivery costs, various Cost Rental homes will have different degrees of affordability for the range of potential applicants. My Department is supporting the delivery of homes at a range of cost and rent levels, depending on factors like location and the size or type of home, and affordability is always a key consideration. By providing significant capital funding, my Department helps to drive down the rents that must be paid by tenants. This funding comes as low-cost loans, capital grants, and State investment. All supported Cost Rental projects must achieve starting rents that are at least 25% (and often significantly more) below comparable local market levels.
The 2025 Programme for Government includes a commitment to target Cost Rental homes at key local workers, and my Department is working to explore all options for achieving this.
In the meantime, we are working to implement certain changes which were made to Part 3 of the Affordable Housing Act 2021 late last year. The Housing (Miscellaneous Provisions) Act 2024 included new provisions related to the Cost Rental sector which are likely to improve access for certain cohorts.
On 2 July this year I made the Affordable Housing Act 2021 (Cost Rental Allocation Plan) Regulations 2025. These Regulations allow for Cost Rental landlords to employ Allocation Plans which may prioritise particular homes for those with a link to an area though residence, employment, or children’s education. This will support people to live and work in their local area.
The Programme for Government also includes a commitment to introduce a cost rental version of the Repair and Lease scheme on a pilot basis. This is aimed both at tackling vacancy and dereliction and providing affordable housing. The new housing plan contains a commitment to develop a pathfinder project for an affordable rental version of the repair and lease scheme and my Department is working with Local Authorities to develop a viable scheme to achieve these aims.
My Department continues to review the operation of the Cost Rental housing tenure.
