Rental Sector
Dail Éireann — 2026-03-03
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John Cummins (FG), Waterford

I thank Deputy Ellis for tabling this Topical Issue matter. The Housing Act 1966 provides for the charging of rent by local authorities on social housing tenancies. Rents are based on household income levels, with those on lower incomes paying lower rents and those on higher incomes paying higher rents. This system is known as the differential rents system. It is a critical piece of the State's welfare apparatus, subsidising housing costs and supporting households who cannot meet their long-term accommodation needs from their own resources. The making or amending of such rent schemes is a matter for local authorities within broad principles that are set out by my Department. As part of its devolved function in administering rent schemes, my Department understands that Dublin City Council has recently undertaken a major review of its differential rent scheme with the intention of making it fairer and progressive whereby those who earn more can pay more while still protecting those on lowest incomes.
Recent analysis by Dublin City Council found more than one fifth of council households have an after-tax income of greater than €1,000 per week. I understand that households in receipt of social housing in the Dublin City Council area pay heavily subsidised rents, with the average charge across the scheme at €83 per week. This average rent is reported to rise to €108 under the changes. The Dublin City Council scheme raises the proportion of income reckonable for rent calculation from 15% to 18% and also takes into consideration the incomes of all subsidiary earners in the household, including adult children who are working. Dublin City Council's new rent scheme is, therefore, progressive in that those households who collectively earn more pay a higher proportion of their income in rent, similar to the PAYE system.
The new housing plan entitled Delivering Homes, Building Communities 2025-2030 commits to reviewing the rents paid by social housing tenants with a view to introducing an equitable system of rents that is fair, progressive, sustainable and that protects the most vulnerable. This builds on the work and analysis my Department has been undertaking, which identified that the current differential system varies significantly across the 31 local authorities. While rents are based on household income, the amounts charged and the approaches taken in calculating those rents differ considerably. Proposals will be submitted to the Minister, Deputy Browne, for his consideration in the second half of this year, and any decision to implement a standardised national rents framework will be considered thereafter.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-03-03/debate/main
Retrieved: 2026-09-14T01:01:02+00:00
Sitting date: 2026-03-03