The ICSH welcomes the new legislative basis for cost rental housing in Ireland included in the Government’s Affordable Housing Bill 2021. Donal McManus, ICSH CEO said ‘the ICSH has long supported the move towards building a cost rental sector in Ireland to provide tenants with long-term security of tenure coupled with affordable rents that will not be subject to housing market volatility’.
Approved Housing Bodies (AHBs) are key to the delivery of cost rental homes and the Cost Rental Equity Loan (CREL), scheme, announced in Budget 2021, will see the Department make €35 million in loan funding available to AHBs and the delivery of 440 cost rental homes this year. A recent ICSH/ NUI Galway report, Supporting the Irish Housing System to Address Housing Market Failure, indicates that State support for cost rental will contribute to a properly functioning housing system by embedding affordability.
AHBs are well placed to deliver cost rental housing as it reflects their non-profit mission: a commitment to managing homes not real estate assets. AHBs are long-term providers, so there is no leakage of state investment. To ensure that these cost rental homes remain truly affordable, the model must be large-scale and long-term with multi-annual targets and budgets set.
The ICSH also welcomes the proposed changes to Part V legislation to revert to 20% of new developments for social and affordable housing and recommend that, in certain areas, 20% social and cost rental homes should be considered.
