Cost rental scheme so popular it is oversubscribed, Housing Minister says

Homes on offer through the State-backed cost rental scheme are proving so “popular” they are oversubscribed, the Housing Minister has said.

The Fianna Fail TD said more than 900 cost rental properties have been approved for this year and early into next year through a scheme that did not exist last year.

Darragh O’Brien said he is “confident” the Government will achieve its target of delivering 24,600 new homes by the end of 2022.

He made the comments at Kilcarbery Grange development in Clondalkin in Tuesday as he officially opened 118 new cost rental homes in two housing developments in west Dublin.

Under the scheme, homes are made available to rent to middle-income earners at up to 40 per cent less than market rates.

Tenants have long-term security and rents are based on the cost of construction and management of the developments, not market rents.

The Government has vowed to provide some 18,000 cost rental homes to the public by 2030 under its Housing For All plan.

Mr O’Brien said: “We’ve approved around 900 new cost rental homes over the course of this year and and early into next year and I want to see that expand further.

“(It’s) a new form of tenure in this country that is very popular. We’ve seen that, when we open up the estates like this for applications, that they are oversubscribed.

“This, I believe, is one of the measures that we need to take in relation to increasing supply across the board with new, safe and secure long-term state-backed rentals.”

He added: “It’s a really, really good day. It’s a great day in particular for the residents who are moving into these fine new homes that will be managed here by Tuath.”

When completed, Kilcarbery Grange will comprise 1,034 new homes.

The first phase of the Adwood Ltd development will see the construction of 301 homes, 74 of which are being allocated as affordable apartments under the new Cost Rental Equity Loan (CREL) Scheme, with rents at 35 per cent below market rents.

The Parklands development in Citywest, by Harcourt Developments, is another large housing scheme and will include more than 500 homes on completion.

Some 44 cost rental homes will be available at first.

He said the Government is investing four billion euro in affordable and social homes, up from 200 million in 2015.

Mr O’Brien said it will be “challenging” to meet its target of delivering 4,100 affordable and cost rental homes by the end of the year, but they are “still very focused on those targets”.

“This is a year of delivery,” he added.

“We’ve had 10 to 12 years of underinvestment in housing which we’re playing catch up on, the two construction shutdowns in 2020 and 2021, but our overall target of 24,600 for housing delivery, both public and private, I’m confident that we’ll meet it.”