Dáil Éireann Debate, Tuesday - 3 March 2026
575. Deputy Emer Currie asked the Minister for Housing, Local Government and Heritage whether he is considering increasing the threshold for the cost rental income assessment; and if he will make a statement on the matter. [16194/26]
View answerCost Rental housing was introduced in 2021 as a new form of housing tenure in Ireland, where the tenant pays a rent which is set to cover the cost of delivering, managing and maintaining the home. It is intended for people on moderate incomes who do not qualify for social housing, but who may be facing affordability pressures in the private rental market. Cost Rental tenancies also offer long-term security of tenure.
Eligibility and income parameters are a way of targeting State-supported Cost Rental homes at those who fall within the moderate income cohort. The primary condition for accessing Cost Rental housing is a net household income under a certain limit, which since 1 August 2023 has been €66,000 per year for homes in Dublin and €59,000 elsewhere. Net income is defined as gross income with income tax, USC, PRSI contributions, and pension contributions deducted.
The legislation does not set a minimum 'income threshold' for a Cost Rental home, but as with any letting of a home, the landlord must consider the issues of affordability and tenancy sustainability. A landlord such as an Approved Housing Body, a Local Authority or the Land Development Agency will assess prospective Cost Rental tenants to ensure they can sustainably afford the rent over the long term, and to do this a landlord may employ financial metrics, such as a rent-to-income ratio.
The 2025 Programme for Government includes a commitment to "keep the income criteria for cost rental under review", in order to ensure they remain fit for purpose. The legislation governing Cost Rental gives broad scope to consider a range of factors when setting household income limits, rather than tying the decision to any one single metric or issue. These factors may include changing economic conditions, Government policy priorities, the current state of the Cost Rental sector, and future plans for the tenure. My Department is progressing this work, and new income limits may be set as necessary through the making of Regulations.
