Under the Housing Assistance Payment (HAP) scheme, 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.
Maximum rent limits for HAP were set for each housing authority area in 2016 in conjunction with the Department of Social Protection (DSP). In reviewing the rent limits, my Department worked closely with DSP and monitored data gathered from the Residential Tenancies Board and the HAP Shared Services Centre.
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.