Landlord gets almost €700,000 in rent supplement scheme

Some landlords get money for over 100 homes in scheme costing State €300m a year

Research found up to 78 per cent of properties in Dublin where tenants were on rent supplement did not comply with basic legal minimum standards; with mould on walls, no running water, vermin and windowless rooms
Research found up to 78 per cent of properties in Dublin where tenants were on rent supplement did not comply with basic legal minimum standards; with mould on walls, no running water, vermin and windowless rooms

One landlord received almost €700,000 from the State in rent supplement payments last year.

Figures released to The Irish Times show some top-earning landlords received State subsidy payments for 100 or more flats or houses.

Rent supplement – which costs the State €300 million a year – is typically paid to people on social welfare or low incomes who cannot afford to pay theirfull rent.

The highest earner received €690,000 last year, substantially more than the second (€284,000) or third highest (€270,000).

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These landlords are not representative of the large numbers involved in the scheme. Three-quarters of the 60,000-plus landlords registered in 2014 had a single tenancy, while 94 per cent of the total had three tenancies or fewer.

The scale of payments has prompted calls for the Department of Social Protection to arrange deals with individual landlords, given that the State gives them significant guaranteed income.

Landlords

A spokeswoman for the department said there was no contractual relationship between it and landlords, as tenants sourced their own accommodation.

The Government has shown little appetite to raise maximum rent supplement payments, despite calls by campaigners who argue that limits are leading to homelessness. Officials say raising rent limits is likely to add to further rental inflation.

Instead, it has focused on increasing rent supplement payments on a case-by-case basis by allowing community welfare officers greater discretion to award higher rates.

There have also been calls to improve accommodation in the private rental sector, especially in lower price ranges and where rent supplement is paid.

Several years ago research found up to 78 per cent of properties in Dublin where tenants were on rent supplement did not comply with basic legal minimum standards.

Much of this substandard accommodation had no hot or cold running water, mould growing on walls or ceilings, vermin infestation and windowless rooms.

Carl O'Brien

Carl O'Brien

Carl O'Brien is Education Editor of The Irish Times. He was previously chief reporter and social affairs correspondent