Dáil Éireann Debate, Thursday - 5 March 2026
174. Deputy Willie O'Dea asked the Minister for Housing, Local Government and Heritage his plans to review the qualifying criteria for cost rental housing; and if he will make a statement on the matter. [17481/26]
Amharc ar fhreagraUnder the Delivering Homes, Building Communities action plan, 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. 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 market pressures. Cost Rental is a growing housing tenure in Ireland, with over 4,800 homes delivered by Q3 2025, and a substantial future pipeline now in place.
Cost Rental is targeted at people within the middle-income cohort, who do not qualify for social housing but who may be facing acute affordability pressures on the private rental market. Eligibility and income parameters are a key tool in 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 annual income under a certain limit, which since 1 August 2023 has been €66,000 per year for homes in Dublin and €59,000 elsewhere, set through secondary legislation. 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 tenant, 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 legislation governing Cost Rental gives broad scope to consider a range of factors when setting the 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.
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. My Department is currently progressing this work.
