Dáil Éireann Debate, Wednesday - 13 May 2026
113. Deputy Réada Cronin asked the Minister for Housing, Local Government and Heritage if reform of the Affordable Housing Act 2021 will be considered to provide a cap on cost rental rent prices beyond the Harmonised Index of Consumer Prices mechanism; and if he will make a statement on the matter. [35744/26]
Amharc ar fhreagraThe Affordable Housing Act 2021 and associated Regulations provide for Cost Rental landlords to carry out rent reviews. The initial rents for new Cost Rental homes are based on the costs, including cost of development, financing, and ongoing management and maintenance, while also delivering starting rents at least 25% below comparable local market levels. Cost Rental rents may be increased over time in line with consumer inflation, so that they remain stable in real, inflation-adjusted terms, while covering increases in costs. If this gradual increase in rents were not allowed for Cost Rental homes, then the initial rents would have to be set significantly higher for the financial models to work.
For sitting tenants, annual rent reviews are based on the percentage change in the Harmonised Index of Consumer Prices (HICP) since the start of the tenancy or since the last rent review. Cost Rental landlords may also review rents between tenancies, looking at the HICP change since the property was originally designated by the Minister. It is envisaged that, assessed over the course of decades, rent increases for Cost Rental homes will be on average in the region of 2% per year.
My Department keeps the operation of the Cost Rental sector under ongoing review, and changes to legislation may be made as appropriate in order to maintain the success of this new housing tenure.
