The Government is acutely aware of the housing challenges faced by many sectors of society. The Government's new housing plan, Delivering Homes, Building Communities, reinforces and expands the range of existing measures being implemented by Government to tackle the issues of supply and affordability.
Cost Rental is a key element of the new plan’s strategy to improve affordability in the rental sector and to provide secure, long-term homes for moderate-income households, including those who may be categorised as frontline workers. The core principle of Cost Rental is that the rents cover the development, management and maintenance costs of the homes, so that the long-term future of the homes is financially secure but that rents are not subject to the pressures of the open market. All cost rental projects must achieve cost-covering rents that are at least 25% below comparable market levels, and therefore present a significant saving to the tenant relative to new market rental properties.
In line with the Programme for Government commitment to earmark certain cost rental homes for key local workers, last July I made the Affordable Housing Act 2021 (Cost Rental Allocation Plan) Regulations 2025. These Regulations allow for Cost Rental landlords to propose ‘Allocation Plans’ for my approval, which may prioritise particular homes for those with a link to an area though residence, employment or education. This will support people to live and work in their local area. For example, Monaghan County Council has an Allocation Plan covering 16 apartments in Monaghan town, with priority for local workers. Earlier this month I gave approval-in-principle to another Plan covering 66 apartments to be delivered in Dublin city centre, again with priority for local workers, which should be announced by the landlord soon.
The definition of key worker is complex. We have learned, especially through the Covid years, that very many people working in public, health and social services and in the broader economy are key workers and making that distinction is not straightforward, or necessarily fair.
My Department continues to explore further options for targeting cost rental homes at key workers and we are supporting the delivery of Cost Rental homes in a range of sizes, locations and rent levels. Upcoming vacancies are advertised as they arise on www.affordablehomes.ie/.
