Housing Schemes
Dail Éireann — 2026-03-05
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James Browne (FF), Wexford

I thank the Deputy for raising this question in relation to the unaffordability of cost rentals. As the Deputy is aware, the cost-rental scheme was introduced by this Government under the previous housing plan and is continued and expanded in the new plan. It is designed to address the affordability challenge in the rental sector and to provide secure, long-term homes for moderate-income households. This is why, under the new Delivering Homes, Building Communities plan, we have committed to growing the provision of affordable cost-rental properties.
Though cost rental was only introduced in 2021, over 4,500 new homes were delivered by quarter 3 of last year and a substantial pipeline is now in place.
There is huge demand for these homes as they become available. While we are not yet at the stage of supplying as many as are needed, we are getting there. The cost-rental homes already delivered and those in the pipeline are meeting a real demand, are incredibly popular and are providing a much needed, secure and affordable element in the rental sector. Let us be clear that cost-rental housing did not exist in this country five years ago. From a standing start in 2021 to now, because of the action of this Government and the unprecedented levels of funding provided in successive budgets, rental properties are being made available at heavy discounts to the private market rental rates. This State intervention is ensuring those on moderate incomes who would otherwise not be able to afford to rent are moving into decent homes with monthly rents they can afford.
We are providing substantial funding to local councils, the LDA and the approved housing bodies, AHBs. Since the launch of cost rental in 2021, approximately €2.25 billion in Exchequer funding has been approved for cost-rental projects. Beyond my Department, significant funding is also being provided by the State's Housing Finance Agency. The lowering of VAT on new apartments to 9% in budget 2026 will also assist in delivering new homes to the cost-rental sector, with lower costs meaning lower rents. The nature of my Department's funding in the form of non-repayable grants and investments and long-term loans at extremely low rates means rents can be set below full cost recovery levels and far below comparable rents in the private market.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-03-05/debate/main
Retrieved: 2026-08-14T04:54:44+00:00
Sitting date: 2026-03-05