Dáil Éireann Debate, Wednesday - 6 May 2026
495. Deputy Roderic O'Gorman asked the Minister for Housing, Local Government and Heritage if the budget for cost rental for 2026 will be increased to take account of inflation due to the Iran war and its impact on making cost rental viable; and if he will make a statement on the matter. [32027/26]
Amharc ar fhreagraMy Department operates three schemes targeted at supporting the delivery of cost rental homes. The Cost Rental Equity Loan (CREL) supports delivery by the AHB sector, the Secure Tenancy Affordable Rental investment scheme (STAR) supports delivery by private operators and the Land Development Agency and the Affordable Housing Fund (AHF) supports Local Authority delivery of cost rental.
All cost rental delivery partners are actively managing costs to ensure that new homes are provided at the best rents that are achievable, and since 2021 around €2.25 billion in Exchequer funding has been approved for cost rental projects. A provision of €575m has been made for AHB cost rental under the CREL scheme and €200m for cost rental delivery under STAR in my Department's 2026 Vote. In addition, number of tax changes to improve the viability of apartment developments were introduced as part of Budget 2026. Where viability issues arise for previously approved cost rental projects, due to issues such as increasing development costs, my Department works with providers to re-assess financial models and potentially vary the funding arrangements.
