Cost rental housing

Cost rental housing provides affordable rented accommodation to people on middle incomes. It is aimed at people who are above the threshold for social housing but have difficulty affording private rented accommodation.

It is called ‘cost rental’ because the rent you pay is based on the cost of building, managing and maintaining the homes. It does not include any profit for a developer. This makes the rent cheaper than standard rents. The rent for cost rental homes must be at least 25% below regular market rents in an area.

Cost rental homes are delivered by approved housing bodies (AHB’s), local authorities and the Land Development Agency (LDA). They provide long-term security of tenure, so people can rent the same home indefinitely.

The Government aims to deliver 18,000 cost-rental homes by 2030. This is outlined in the Housing for All plan, which sets out the housing plan for Ireland to 2030.

In cost rental homes, the rent is based on how much building, managing and maintaining the property will cost. 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.

Rents are linked to annual inflation, so any rent increases will be in-line with inflation.

Tenants have greater security of tenure in cost rental homes, making renting a long-term option.

Cost rental homes are delivered by approved housing bodies (AHB’s), local authorities and the Land Development Agency (LDA). The local authorities and approved housing bodies apply for government funding and grants to help cover the cost of building or buying these homes.

Cost rental homes are aimed at people on middle incomes who may have difficulty paying the rent in private rented accommodation, but who don’t meet the income criteria for social housing support.

You qualify for cost rental housing if:

• Your net household income is below €66,000 per annum for Dublin and €59,000 for everywhere else in the country
• You are not getting any social housing supports, including the 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 property
• All members of the household are living in Ireland when you apply

Eligibility criteria for cost rental homes are set out in SI 755 of 2021.

What is net household income?

Net household income is calculated by adding together the net income for each household member aged 18 and over.

Net income means that income tax, universal social charge, PRSI and superannuation contributions are deducted from the relevant gross assessable income.

When cost rental homes become available, they are advertised online by the AHB, local authority or LDA, depending on who is administering the individual scheme.

If you are interested in cost rental housing, you should check the LDA, AHB and local authority websites for details about upcoming schemes. You can also find a current list of scheme providers and available cost rental homes on the Affordable Homes website.

You can apply for each cost rental home as it becomes available, there is no central application system.

The landlord (AHB, local authority or LDA) decides on the application process for each cost rental scheme. For example, an AHB may take applications online on its website.

When you apply you will be asked to confirm your eligibility and will have to submit these documents:

• Proof of ID for everyone in the house, including children
• Proof of address
• Proof of residency
• Proof of income for everyone over 18
• Employer references for everyone over 18
• Bank statements for everyone over 18
• Landlord references for everyone over 18. (If you haven’t rented before, you might need to provide additional information, such as a character reference and evidence of a track record of savings or contribution to household expenses.)

You can find more information about what documents are accepted as proof on affordablehomes.ie.

If there are more applications than homes available, there will be a lottery for places. Every eligible application for each unit type will be entered into a lottery and names will be chosen at random.

If your application is successful, the organisation administering the scheme will contact you to let you know.

You will be asked to pay a deposit of one month’s rent minus €50. You will then be asked to sign Tenancy Agreement and will be given a move-in date.

Cost rental homes do not come furnished. So, you will have to get your own furniture for your home. However, some items may be included already, such as:

• White goods (like a fridge-freezer, dishwasher, oven and hob, microwave, washer-dryer)
• Blinds
• Flooring

You will also need to set up utilities yourself, such as:

• Electricity
• Internet
• Telephone

When you are a cost rental tenant, your landlord will be the organisation who delivered your home. For example, the AHB or local authority who provided your cost rental home or an agent operating on their behalf. You will have a tenancy agreement with the landlord, which will include details about the length of the tenancy, as well as the rights and responsibilities you have as a tenant.

With cost rental homes, you get longer security of tenure. You get security of tenure after the first 6 months as long as there are no issues with breaches of tenancy or rent arrears. This means if you are paying your rent and meeting your other tenant obligations, you can continue to rent your home for as long as you want.

If you are a tenant in cost rental housing, you are protected in residential tenancies legislation. You have some of the same rights as private tenants. For example, you can access the RTB’s dispute resolution process and your tenancy must be registered with the RTB. However, there are some differences, for example, the rent setting process is different and a cost rental tenancy cannot be terminated for the same reasons as private tenancies.

Your rent must be at least 25% below private market rents in the area. Rents are linked to inflation, so any rent increases will be in-line with inflation. Your cost rental tenancy agreement may include information about how often your rent will be reviewed. However, if it does not, the general rules say that rent cannot be reviewed within 12 months of the start of the tenancy and not more than once every 12 months after that.

You must get notice of a rent review and this notice must contain specific information about the new rent. If you have a dispute about the new rent, you can bring this to the RTB within 28 days of getting the rent review notice.

If your circumstances change when you are a cost rental tenant, you can continue renting the property. For example, if your household income increases above the income limit after you’ve moved in, you won’t have to move out.

Regulations on cost rental housing are set out in the Affordable Housing Act 2021.

The Affordable Homes website has developed an FAQ about the scheme. They also have a step-by-step guide on how to rent a cost rental home.