Dáil Éireann Debate, Tuesday - 25 July 2023
1289. Deputy Michael Lowry asked the Minister for Health to outline the potential changes to the nursing homes support scheme, commonly known as fair deal, specifically the plan to introduce incentives for long-term nursing home residents to rent out their homes; when the implementation of a 0% rate of assessment for rental income obtained from a principal residence will take effect; and if he will make a statement on the matter. [36459/23]
View answerEffective from 1 November 2022, the amount of rental income that nursing home residents can retain under the Fair Deal from renting their principle private residence increased from 20% to 60%.
Prior to this change being implemented, participants in the Fair Deal scheme were able to rent out their homes or other assets, however rental income was subject to assessment at 80% like all other income (such as pension income).
Recognising that this may act as a disincentive against renting out a property, the Government approved a policy change to the Nursing Homes Support Scheme, “Fair Deal”, to remove a disincentive for applicants to the Scheme to rent out their principal residence after they have entered long term residential care. The rate of assessment for rental income from a principal residence is reduced from 80% to 40%. This means that for someone renting out their principal residence, they retain 60% of the income accrued from that rental and 40% is assessed under Fair Deal
This policy change is currently under review, examining any unintended consequences and potential safeguarding issues, with the intention for amendment if necessary.
It should be noted that rental income accrued from property that is not a principal private residence will continue to be assessed at 80%.
This policy change addresses the commitments made under Housing For All Action 19.8. The change was made through a Committee-Stage amendment to the Department of Housing, Local Government and Heritage’s Regulation of Providers of Building Works and Building Control (Amendment) Bill 2022 which is in operation as of 1 November.
