Maximum Rent Limit Analysis and Findings Report February 2015


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Introduction

The purpose of Rent Supplement is to provide short-term support to eligible people living in private rented accommodation, whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. One of the key messages of the review is that Rent Supplement continues to play a vital role in housing families and individuals, with the scheme supporting more than 70,000 people this year at a cost of €298 million.

Between the Rent Supplement scheme administered by the Department of Employment Affairs and Social Protection and the Rental Accommodation Scheme administered by the Department of the Environment, the State accounts for a third of the private rented market. This means that the State is a very significant player in the sector, and the review notes that the Department of Employment Affairs and Social Protection therefore has a responsibility not alone to Rent Supplement recipients but also to the market as a whole, including all those in private accommodation.

The review points out that the main cause of difficulty for persons renting or seeking to rent at this time is the reduced availability of affordable private rented accommodation. The report finds that increasing rent limits at this time could potentially provide an impetus for current Rent Supplement landlords to renegotiate their lease agreements to the new limits, impacting on all existing recipients; and thereby create new rental floors for all properties in the sector.

In light of the review’s findings, and in line with its recommendations, the Department will instead continue to allow for flexibility in assessing customers’ accommodation with each tenant’s circumstances considered on a case-by-case basis, and rents increased above prescribed limits if deemed appropriate, through the Department’s National Tenancy Sustainment Framework, and also the Interim Tenancy Sustainment Service, operated in conjunction with Threshold in Dublin and Cork areas.

To view the full Maximum Rent Limit Analysis and Findings Report February 2015 please click here.

 

Last modified:27/03/2015