Dáil Éireann Debate, Thursday - 5 March 2026
260. Deputy Paul Murphy asked the Minister for Housing, Local Government and Heritage if his Department has conducted a poverty impact assessment of the double rent increase facing HAP tenants arising from the abolition of rent controls between tenancies which will increase top ups paid by HAP tenants to landlords and the decision of many local councils to increase council rents for HAP tenants; and if he will make a statement on the matter. [17645/26]
View answerTenants in the HAP scheme are required to sign a rent contribution agreement to pay a weekly rental contribution to the relevant local authority, in line with the local authority’s differential rent scheme. As set out in the rent contribution agreement, this weekly rental contribution must be paid by them so that they remain eligible for the HAP scheme. Where a person has a change of circumstances, such as a loss of income, they should notify the relevant local authority. The local authority can reassess those tenants and adjust their differential rent accordingly.
The right of local authorities to set and collect rents on their dwellings is set out in section 58 of the Housing Act 1966. The making or amending of such schemes is an executive function and is subject to broad principles laid down by my Department, including that the rent payable should be related to income and a smaller proportion of income should be required from low income households; and that provision should be included for the acceptance of a lower rent than that required under the terms of the scheme in exceptional cases where payment of the normal rent would give rise to hardship.
Under HAP, a tenant sources their own accommodation in the private rented market. This accommodation should be within the prescribed maximum HAP rent limits, which are based on household size and the rental market within the area concerned.
Since 11 July 2022, each local authority has statutory discretion to agree to a HAP payment up to 35% above the prescribed maximum rent limit. Discretion can be increased up to 50% above the prescribed maximum rent limits for Homeless HAP tenancies in Dublin. Local authorities also have additional flexibility to apply a couple HAP rate to single person households. This additional measure recognises the challenges experienced by single person households, and the fact that both single and couple households have a one-bed need.
My Department has reviewed the use of these measures and their impact on the overall affordability of the HAP scheme for tenants. This review has highlighted that the affordability and sustainability of HAP tenancies continues to be impacted by pressures in the private rental market. My Department is now undertaking a review of existing HAP rent limits to ensure there is sufficient support under the HAP scheme to assist eligible households in accessing accommodation in the private rental sector.
It is intended that the review process will conclude before the end of Q2 this year.
