Cost rental eligibility
Deputy Boyd Barrett argued that income thresholds for cost rental exclude households just above social housing limits but unable to afford market rents. The Taoiseach said the scheme’s purpose is to cover costs and that some people will always fall just above or below any threshold.
The Respond announcement about plans for just under 3,000 new cost-rental homes by next September is very welcome. However, a problem was highlighted to me by Jane, who is a single mum with one child. She is working and earns €42,000 net and is, therefore, over the threshold of income for social housing. Her income is not sufficient, however, to allow her to pay the rent according to the guidelines for cost rental.
Jimmy, a single dad with two children, who earns €46,000 net, is over the social housing income threshold. He should be eligible for the cost-rental scheme but is not because the rent for the cost rental is too high for his income. Rent is supposed to be no more than 35% of a person's income. The scheme does not align with the incomes of those for whom it is supposed to be providing cost-rental housing. I have made this point previously. These are just two examples and I could give the Taoiseach more. There is a problem that needs to be addressed. These people are being left in limbo.
Comment on this
I thank the Deputy. We keep all these things under constant review. No matter what income limits are designed, there will always be people just above that limit. No matter what rent is set, there will always be some people who can and cannot afford it. No matter where those levels are set, the same problems and challenges will arise. I should say that the whole point of cost rental is that it is cost rental. The rent must be able to cover the cost of building the building itself and not without a profit.