Cost Rental Scheme
Emmet Road Development Computer Generated Imagery.
A Cost Rental dwelling is a new form of tenure with the objective of providing rental accommodation for those who are above the threshold for social housing. It offers affordable long-term, secure rented accommodation. It is aimed at people who have a net household income of €66,000 or below.
This new form of renting seeks to provide secure, quality housing that remains sustainably affordable over time.
It is called ‘cost rental’ because the rent you pay is based on the cost of delivering, maintaining and financing the homes, rather than for profit. This will result in a lower rent than market rent for cost rental tenants. The rent for cost rental homes must be at least 25% below comparable market rents in an area.
Cost rental homes are aimed at people on moderate incomes who may experience financial difficulty accessing housing or meeting the on-going cost of accommodation but who don’t meet the income criteria for social housing support.
You may be eligible for Cost Rental if:
- Your net household income is below €66,000 per annum
- Your household is not in receipt of any social housing support payments, e.g. Rent Supplement or Housing Assistance Payment (HAP)
- You do not own a property
- Your household size matches the size of the property advertised. For example, a two-bed unit may be suitable for two adults, a couple, or lone parent with 1 or more children.
- You can afford to pay the rent for the home
- Your household has only applied once for a specific Cost Rental home
Net household income is calculated by adding together the net income for each household member aged 18 and over. Net household income means income tax, universal social charge, pay-related social insurance and superannuation contributions have been deducted from the assessable gross income. As stated above the net household income must be below €66,000 per annum.
Further details: S.I. No. 755/2021 - Affordable Housing Act 2021 (Cost Rental Letting and Eligibility) Regulations 2021 (irishstatutebook.ie)
Dublin City Council has identified over 2,600 Cost Rental homes which it will deliver as part of its Housing for All programme.
The locations of these homes can be viewed at: https://mapzone.dublincity.ie/MapzoneAffordableSchemes/MapZone.aspx?map=Affordable_Schemes
Information on Applying
Cost rental homes are new and only a number of these developments have been delivered nationally so far.
Cost Rental homes will be advertised online as they become available and in line with Government Regulations. The Cost Rental Schemes being made available within the Dublin City Council functional area will be delivered either by Dublin City Council (DCC), the Land Development Agency (LDA) or an Approved Housing Body (AHB).
DCC, the LDA or the relevant AHB will specify how an application for a cost rental dwelling is to be made.You apply to the relevant body (ie the landlord) for each scheme on an individual basis. The Government Regulations state that the landlord making the Cost Rental homes available must advertise the homes online and for a period of not less than seven days, during which period the landlord of the cost rental dwelling concerned shall accept applications from prospective tenants. The landlord shall establish that all perspective tenants meet the required eligibility criteria. Further information is available on S.I. No. 755/2021 - Affordable Housing Act 2021 (Cost Rental Letting and Eligibility) Regulations 2021 (irishstatutebook.ie)
The regulations state that in cases where applications for Cost Rental homes exceed the number of homes available that “the landlord shall, through means of an independently verifiable lottery, select from the total number of applicants a number of applicants equal to the number of tenancies available.”
However, if a selected applicant subsequently withdraws or is deemed by the landlord to be ineligible a further nominee can be selected from the original applicants.
No. Each Cost Rental development is advertised separately. You can apply once a development is advertised and you can only make one application per Cost Rental scheme.
When allocating Cost Rental homes, the regulations allow the landlord to assess the number of persons in each household and place tenants in a Cost Rental home which is appropriate to their needs. For example, a two-bed unit may be suitable for two adults, a couple, or lone parent with 1 or more children.
This cost is calculated over a minimum of 40 years and the rents must be at least 25% below private market rents in the area. Rent can increase on an annual basis in line with inflation to account for potential increases in costs over time. It is expected that this will provide a long term sustainable housing solution as the rent is based only on the cost of delivering, financing and maintaining the property.
Information on Cost Rental Rents and Tenancies
It is important to note that Cost Rental tenancies are not classified as social housing. Instead Cost Rental tenants are protected in Residential Tenancies Legislation. You have some of the same rights as private tenants. For example, you can access the Residential Tenancy Board’s (RTB’s) dispute resolution process and your tenancy must be registered with the RTB.
However, there are some differences, for example, the landlord can only terminate the cost rental tenancy under one or both of the following limited grounds:
- The tenant has breached his/ her obligations;
- The dwelling is no longer suitable to the accommodation needs of the tenant and of any persons residing with him or her having regard to the number of bed spaces and the size and composition of the occupying household.
This means that most of the usual grounds on which a landlord can terminate, for example, a “Part 4 tenancy” do not apply to cost rental dwellings. This includes the landlord not being able to terminate the cost rental tenancy because they want to sell the property, the landlord or a family member wanting to live there, the wanting to substantially refurbish/ renovate the property or to change its use).
Cost Rental is a different form of rental tenure to social housing.
In the case of Cost Rental where Dublin City Council is the landlord a separate Cost Rental Tenancy Agreement will be signed by the tenant and Dublin City Council, which will include details about the length of the tenancy, as well as the rights and responsibilities you have as a tenant.
Further Information