I understand that my Department has responded to this individual's correspondence in relation to the affordability of rents in Cost Rental housing.
My Department’s primary role in the Cost Rental housing sector is in the formulation and implementation of national-level policy, and in the preparation of legislation and guidelines. The day-to-day operation of Cost Rental homes, and particularly matters such as receipt of applications and entry into tenancy contracts, are matters for the relevant Cost Rental landlord to manage.
All Cost Rental providers are obliged to make Cost Rental homes available in line with the provisions of the Affordable Housing Act 2021 and associated Regulations. All homes must be allocated to a tenant whose household falls within prescribed eligibility conditions. Where demand exceeds supply, the ordering of eligible applicants is randomised through a lottery, in order to ensure equal treatment regardless of time and date of application.
Since rents must cover costs on an ongoing basis, a Cost Rental landlord must be reasonably confident that a prospective tenant can afford to sustain rent payments every month over the long term. Therefore, under the current legislation, a Cost Rental landlord has final discretion on whether to enter into a tenancy agreement with any particular eligible applicant. This may involve assessment of the level of rent relative to someone's income, applying consistently and clearly an affordability metric chosen by the landlord.