Government delivers just 10% of low price 'cost-rental' homes

The Government has hit just 10% of its target for low price ‘cost-rental’ homes this year, new figures have revealed.

Despite hailing mandatory low-rent homes as key to ending the housing crisis, the Coalition is massively behind on its targets.

Just 234 cost-rental homes have been delivered in the past 12 months, in stark contrast with a Government pledge to deliver 2,000 homes a year as part of the Housing For All plan.

government delivers just 10% of low price 'cost-rental' homes
© Provided by Extra.ie The Government has hit just 10% of its target for low price ‘cost-rental’ homes this year, new figures have revealed. Pic: Gareth Chaney/Collins Photos

Although 350 cost-rental homes were expected to be delivered last year under plans unveiled in 2020 by Housing Minister Darragh O’Brien, just 65 were ultimately delivered before the end of 2021.

‘Cost-rental’ homes are so-called because the rent is based on the cost of building and maintaining the homes – and does not include any profit for a developer. The rent must be at least 25% below regular market rates in an area and the net household income must not be more than €53,000 per annum.

The Opposition is now warning the progress in building cost-rental homes is so slow that it is a ‘long distance’ from its desired effect of cooling the rental market.

government delivers just 10% of low price 'cost-rental' homes
© Provided by Extra.ie Despite hailing mandatory low-rent homes as key to ending the housing crisis, the Coalition is massively behind on its targets. Pic: Leon Farrell/RollingNews.ie

The first cost-rental houses were launched by Mr O’Brien in Balbriggan, north Dublin, last August, promising low-cost rental homes to be built ‘at scale’ in the coming years. He wrote on social media at the time: ‘Signing & sealing very first cost-rental designations in Ireland. 25 Cost Rental homes in Balbriggan at rents of between €935 & €1,100 – up to 50% discount on local market rates. We will be rolling out this form of tenure at scale over the coming years.’

Mr O’Brien said the cost-rental model was a ‘critical’ part of housing policy in a glitzy Fianna Fáil promotional video in January last year. He said: ‘Through the Affordable Housing Bill 2020 we will place this new cost-rental model on a legislative basis, a critical step towards our objective Housing For All.’

However, the Government must now deliver 1,411 units in the next six months to meet its goal for this year. With just 169 cost-rental properties delivered to date this year, there are is belief among Opposition TDs that targets will be missed again. The Government would need to deliver 1,411 costrental homes, or 89.3% of its target, in the next six months.

In response to a parliamentary question by Social Democrats housing spokesman Cian O’Callaghan, the Housing Minister confirmed that 234 cost-rental properties have been opened in the 12 months since the Affordable Housing Act was passed in July 2021.

government delivers just 10% of low price 'cost-rental' homes
© Provided by Extra.ie Mr O’Brien said the cost-rental model was a ‘critical’ part of housing policy in a glitzy Fianna Fáil promotional video in January last year. Pic: Leah Farrell/RollingNews.ie

Some 132 of these properties (56%) of these homes were in Dublin.

The remaining 102 (44%) were delivered in Kildare. There were no cost-rental homes opened in any other part of the country.

Of the 234 homes delivered to date, 65 were opened in 2021.

The remaining 169 were delivered in the first six months of 2022. The monthly rent in the six developments ranged from between €1,056 and €1,282 per month. In his response to Mr O’Callaghan, Mr O’Brien stated that 10,000 costrental homes will be delivered between 2021 and 2026.

Mr O’Callaghan told the Irish Daily Mail that the number of homes delivered is below where it needs to be. ‘We need thousands of these cost rental homes every year,’ Mr O’Callaghan said. ‘There is a huge demand for affordable renting. It is frustrating how slow the progress is on it… It is not going anywhere near meeting the level of demand that is there.

government delivers just 10% of low price 'cost-rental' homes
© Provided by Extra.ie Although 350 cost-rental homes were expected to be delivered last year under plans unveiled in 2020 by Housing Minister Darragh O’Brien, just 65 were ultimately delivered before the end of 2021. Pic: Fran Veale

‘Housing For All talks about thousands of cost rentals homes and there’s a long distance to go.

‘I’m very concerned that [the Government] is not going to hit their targets.’

Mr O’Callaghan also noted that targets tend to be backloaded and many of the homes in the 10,000 target, outlined by Mr O’Brien, will be delivered closer to 2026. He said: ‘Promising delivery in the future has been done for years in housing and they have failed to deliver on that. If [the Government] is serious about that 10,000 target, they need to be delivering a lot of that this year, especially as there was such a small delivery of 65 cost rental homes last year.’

Mr O’Callaghan said cost-rental projects, when delivered at scale, can ‘calm rents and prices’ in the private market. However, he warned it was a ‘long distance from having that kind of wider effect’. In the parliamentary question answer, Mr O’Brien noted that Dublin City Council is planning to develop an estimated 376 cost rental homes on the Emmet Road site in Inchicore. The Land

Development Agency (LDA), meanwhile, expects to deliver 306 cost rental homes at Shanganagh, Shankill, south Dublin.

Some 100 costrental units will also be opened on the former HSE site at St Kevin’s Hospital in Cork City, with the first homes expected at the end of 2023 or in the first quarter of 2024. ‘The LDA is actively developing 12 sites, capable of delivering about 6,000 homes and has recently submitted planning applications for 2,358 social and affordable homes,’ Mr O’Brien added.

The Housing For All plan has a target of 18,000 new cost-rental homes before 2030. However, the yearly targets for cost rental are included with affordable purchase homes targets.

This year, the target for both types of properties is 4,100.

There is a commitment to deliver one cost-rental home for every two affordable purchase homes. This means that the cost-rental target for 2022 should be approximately 1,366.

A spokesman for Minister O’Brien confirmed on Monday it is expected that 1,580 homes will be delivered before the end of the year.

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Palay-Palay  National ParkAbout PagudpudFive Levels of Aguinid FallsIntroducing San Pascual, MasbateMount Manmanoc ItineraryAdventures in Fortune Island of Nasugbu | LakwatseroNext Level Mobile Photography with Sony Xperia XZ1 | LakwatseroScuba Diving in Siargao: Discovering the Underwater Treasures of Daku Island | LakwatseroAbout Davao CityHow to Get to AndaJanuary: Cebu & IloiloHow to Get to Mines View ParkKamay ni Hesus: Pilgrimage Site in Lucban | LakwatseroPoon Hill: Three Days of Himalayan AdventureCalvary Hill Cemetery of SagadaHow to Get to TambobongMilford SoundTen Things To Do in Sagada: Bucket List for NewbiesDahoyhoy FallsPilot for a Day: The Ultra Light Aircraft Experience | LakwatseroReal Coffee and Tea Cafe of Boracay | LakwatseroGhorepani Poon Hill TrekAbout Maniwaya IslandHow to Get to Binanga FallsPalo Alto Falls of Baras, Rizal | LakwatseroExplore Moscow: Best Things to Do in the City | LakwatseroStairway to HeavenMount Guiting-Guiting Overnight Trek Complete ItineraryCape Melville LighthouseLa Cathedral Café: Restaurant with a View in IntramurosKapurpurawan Rock Formation: White and BeautifulDay Hike ItineraryThe Sandbox at AlvieraHow to go to Mararison IslandA Weekend of Adventures in South Cebu and DumagueteCalayan Island: A Virtual Diary of Our Epic Journey | LakwatseroFaro de Isla Jintotolo (Jintotolo Island Lighthouse)Low’s PeakAbout Taal VolcanoHow to Get to Mag-aso Falls of BoholSamar: Biri Rock Formations Up Close | LakwatseroBonbon BeachIntroducing Jomalig IslandAbout Cotabato CityAbout TabukLeyte Landing Memorial: A Memorial for a Fulfilled Promise | LakwatseroSilyang Bato, Mount MaramiPanimahawa Ridge and Cedar Falls Day Hike ItineraryFun in the World’s Best IslandSample Albay ItinerariesMagpupungko Beach and Tidal Pools6 Tips for Living in the Philippines | LakwatseroDaraga Church: The Nuestra Señora dela Porteria ChurchTulgao Rice TerracesCape Melville Lighthouse (Faro del Cabo Melville)Canyoneering to Kawasan FallsLake FewaLong Weekend: Five-Day Suggested Itineraries in Luzon | LakwatseroAbout CaponesThe Wichcraft Café of Zamboanga City | LakwatseroHow to Get to GuiuanAll-Female FloorHow to Get to Neri’s VilleDiotay’s EateryShort but Sweet Melaka Getaway | LakwatseroHow to Get to Tinuy-An FallsOslob: The Lost Grandeur of Tumalog Falls | LakwatseroIlocos ItineraryDitumabo Falls: The Mother Falls of San Luis, Aurora!Biking in Kalinga: Trek and Bike to TabukParadise Garden: A Haven for Sea TurtlesSiargao: Magpupungko Beach and Tidal Pools | LakwatseroAbout Bucas GrandeCoral GardenSagadaA Walk in Sangay Siapo Island Before it is Gone? | LakwatseroAmbaguio-Akiki ItineraryCorregidor Island Lighthouse (Faro dela Isla de Corregidor)Faro de Punta de Malabrigo (Malabrigo Point Lighthouse)About CulionNaidi Hill LighthouseBoquete IslandHow to Commute to Temple of LeahCatanduanes: The Heritage Church of Bato | Lakwatsero1. White Water Rafting or KayakingMount Fuji Overnight Climb ItinerarySip & Gogh Paint Studio: Unleash Your Inner Van Gogh | LakwatseroBatanes ItineraryHow to Get to Quitinday HillsAbout Callao CaveDiscover LakawonBiking to Taal: A Fun Ride to Batangas’ Heritage TownAntique Blooming: The Rafflesia of San RemigioMalasimbo Lights and Dance FestivalBacolod ItineraryPoon HillAttractions in Mirador Heritage and Eco ParkHulhumale Public BeachRomblon Island: Bonbon Beach, Tiamban Beach & MoreAdventure in Sabah: White Water Rafting in Padas River | LakwatseroHow to Get to Hinakpan Mystical HillsWelcome to Lake SebuAbout CasiguranAbout BuscalanHow to Go to Kalanggaman IslandFaro de Cabo Bojeador (Cape Bojeador Lighthouse)Backpacking Maldives: Budget Itinerary, Expenses & TipsHow to Get ThereOffbeat Bohol Itinerary: 3D/2N of AdventuresHow to Get to Tawi-TawiAlona BeachPangilatan Falls: The Forgotten Gem of Tapaz, CapizWorld War I: SMS Cormoran II3D/2N Taiwan Itinerary: Taipei – Yehliu – ShiffenLaos for Backpackers: Getting There on a BudgetBasic RequirementsHow to Get to Antong FallsCathedral CaveHow to Go to Gubat, SorsogonAbout SadangaHow to Get to Bugui Point LighthouseHow to Get to Cabra Island LighthouseCebu Itinerary: Three-Day Adventures in the SouthAbout AndaLuna: A Day in the Show Window of Apayao | LakwatseroMargues Blue LagoonFinding Palaui’s Cape Engaño Lighthouse | LakwatseroHow to Get to Mantayupan Falls of Barili, CebuHow to Get to MaligcongLinapacan Islands: Between Paradise | LakwatseroKLIA to KLCCHow to Get to JomaligBanaug ShoalEspadang Bato – Payaran Falls Day Hike Itinerary10 Remarkable Philippine Destinations for Solo TravelMiagao Church: A UNESCO World Heritage Site in IloiloAbout Carbin ReefAbout Parola IslandCabra WreckageCobra Falls: Ozamiz City’s Best Kept SecretBasco: The Chapel on the Hill of Tukon | LakwatseroBack in Kathmandu’s Lovely Mess | LakwatseroHimalayan Adventure: Kathmandu to Pokhara Overland | LakwatseroItineraryChinatown Vancouver (Stop #23)Situbo Falls: Tampilisan's Awesome SurpriseHow to Get to Inambakan FallsTuasan Falls: Another Camiguin’s Charmer | LakwatseroHow to Get to Lake SebuMarinduque Loop: Biking in the Heart of the Philippines1. 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