One hundred and twenty homes have been acquired by the Housing Agency as part of a State scheme which aims to buy houses from landlords in cases where their plans to sell up could result in homelessness for the tenants.
The total cost of the homes came to €31.73 million.
Under the cost rental tenant in situ scheme, introduced by outgoing Minister for Housing Darragh O’Brien in April 2023, the State is empowered to buy homes offered by landlords who are selling up and where their tenant is at risk of homelessness but is not eligible to qualify for social housing supports.
New information released by the Housing Agency to The Irish Times under the Freedom of Information Act shows that up until November 15th, some 120 homes have been purchased across the country.
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The highest number of purchases was in Dublin, where 23 properties were bought. The price of these properties ranged from €220,000 to €645,000.
Under guidelines given to tenants who are joining the scheme, they are told that their rent ‘may be reviewed and adjusted’ as part of any ‘transition process’
In Limerick, 16 homes were bought from landlords who were selling up, with the price of those acquisitions ranging from €179,000 to €365,000.
In Cork, a total of 13 properties were bought under the scheme, with prices ranging from €175,000 to €340,000.
In Wexford, eight homes were purchased with prices between €160,000 and €290,000. One home was acquired in Wicklow for €400,000. Five homes were bought in Kildare for between €270,000 and €380,000.
Under the scheme, introduced as part of a wider package which was unveiled after the removal of the eviction ban, the tenant pays the same rent as they paid under their previous landlord and the Housing Agency becomes the landlord.
It was originally intended that these rental properties, which have been acquired by the State, would be transitioned to cost-rental properties. As of early November, however, no tenants had been placed on rents below market rates.
Mr O’Brien has said that as the scheme is now on a legislative footing, he expects Approved Housing Bodies (AHBs) would begin to buy up properties, which would allow those tenants to progress to a cost rental model.
The Irish Times reported earlier this year, however, that in a Cabinet committee meeting Ministers were told a move to cost rental could mean higher rents for the majority of affected tenants.
One suggestion made at the time was that the subsidy for each tenant arrangement would be tailored so that the person’s new rent would be linked with rent pressure rules. Those rules limit hikes to no more than 2 per cent a year.
It was originally intended that these rental properties, which have been acquired by the State, would be transitioned to cost-rental properties
That would have seen some tenants given a higher subsidy than might be available to other tenants applying for new cost rental arrangements in new units.
Under guidelines given to tenants who are joining the scheme, they are told their rent “may be reviewed and adjusted” as part of any “transition process”. For a tenancy to operate under a cost rental model, they will likely have to be under an AHB first.
Under the cost rental tenant in situ scheme, the net annual income of the household must be below €66,000 per annum for applicants in Dublin, and below €59,000 per annum for applicants elsewhere. Landlords are not obliged to sell their house to the Housing Agency as part of the scheme.
This scheme is separate to the social housing tenant in situ scheme administered by local authorities, which buy houses from landlords whose tenants are in receipt of housing supports such as HAP, the housing assistance payment. A total of 1,830 homes were acquired by local authorities under this scheme in 2023.
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