Dáil Éireann Debate, Thursday - 1 December 2022
86. Deputy Brendan Griffin asked the Minister for Housing, Local Government and Heritage if he will consider expanding the repair-and-lease scheme to include properties renovated for affordable private rental; and if he will make a statement on the matter. [56892/22]
View answerUnder the Repair and Leasing Scheme, the local authority, or approved housing body, pays for the repairs to a vacant property upfront and the home is taken into social housing stock by way of lease for between 5 and 25 years. The cost of repairs is offset against reduced lease payments to the property owner and therefore has a neutral cost to the Exchequer.
As the cost of repairs is recouped from the property owner through reduced lease payments, the model is not appropriate to the private rental market.
Separately, the Government is committed to the development of a Cost Rental sector in Ireland. Cost Rental has been set out in Part 3 of the Affordable Housing Act 2021 and aims to provide a more affordable form of rental tenure for moderate income households, where the rent charged is set to cover only the cost of provision, financing, management and maintenance. Cost Rental is being rolled out primarily by approved housing bodies, local authorities and the Land Development Agency, with the aim of building up this new sector to avail of economies of scale in the provision and maintenance of properties. Upfront capital funding is available to assist in the provision of Cost Rental homes, but as a core principle of this policy is to facilitate a self-financing form of tenure, the provision of ongoing lease payments in line with those used in the Repair and Leasing Scheme would be incompatible with the Cost Rental model as set out in legislation.
