My Department operates three schemes targeted at supporting the delivery of cost rental homes. The Cost Rental Equity Loan (CREL) scheme, which is delivered by the Approved Housing Body sector; the Secure Tenancy Affordable Rental investment scheme (STAR), which is delivered by private operators and the the State's Land Development Agency; and the Affordable Housing Fund (AHF), which 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 approximately €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 the STAR scheme in my Department's 2026 Vote. In addition, a 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.
Cost rental delivery will continue to be expanded and will, along with other measures aimed at increasing the supply of homes to rent, help to moderate rent levels in the private rental sector over time.
