John has repeatedly called on the government to review and reduce the rent charged for cost rental units, warning that prices are creeping ever closer to the private market and are set to rise further as inflation soars. The Department of Housing has confirmed that rent for cost rental units may increase in future years in line with inflation, despite inflation now running at levels that are already putting renters under severe pressure.
“Cost rental units are supposed to be affordable, yet they are priced only 25 percent below comparable market levels. That might sound reasonable on paper, but when market rents are at record highs, even 25 percent less is still unaffordable for many,” Deputy Brady said. “New developments are seeing increased cost rental prices simply because they are pegged to a private rental market that is completely broken. This is not affordability, this is a government washing its hands of the housing crisis while bowing to private sector lobbying.”
Cost rental is intended for those with an income above the social housing threshold, capped at a maximum of €66,000 in Dublin and €59,000 in other counties. Yet Deputy Brady has highlighted a recent case from his own constituency that shows how flawed the model is in practice.
“A constituent contacted me to say that despite having a household salary of near €55,000, they were refused a cost rental home. With children and normal daily expenses, their income was deemed too low, as the rent would have eaten up more than 35 percent of their net income. That is a damning indictment of this government’s policy, properties that are supposed to be affordable are now too expensive even for ordinary working families who meet the stated criteria. What hope does anyone have of securing a home under this system?”
Deputy Brady criticised the government for refusing to look at successful European models. “In Denmark and other countries, affordable housing is delivered on a not-for-profit basis, with rents calculated on the cost of construction rather than market conditions. It works there, but here, we have a government locked into a developer led approach, prioritising profit margins over the right to secure and affordable housing.”
Wicklow is now the second most expensive county to rent in the State and the second least affordable county for housing based on Chill Insurance research. Brady says this crisis is being compounded by a lack of delivery locally. “There has been very little cost rental and affordable purchase development in Wicklow. Cost rental has only been delivered in Delgany, and affordable purchase schemes in Rathnew and Baltinglass. That is nowhere near enough to meet demand.”
“The spiralling cost of rent and the lack of affordable purchase options is devastating for families and young people who want to put down roots in their own communities. Urgent reform, major investment and real action is needed now. Instead, we have a government that is asleep at the wheel, bowing to industry lobbying at the expense of those desperately trying to get a home.”