The first homes to be delivered under the Government’s new cost rental tenure model have been launched by housing agency Clúid.
The 25 properties in Balbriggan in north Co Dublin will be rented to qualifying tenants at sub-market rates of between €935 and €1,150 a month.
Under the scheme, rents for the homes are set at a minimum of 25 per cent below market values.
The idea is that tenants pay rent that covers the costs only of delivering, managing and maintaining the homes.
The State-backed scheme aims to assist those on “moderate incomes” who are above the income threshold for social housing.
The 25 homes in the Taylor Hill estate in Balbriggan were purchased by Clúid, one of three approved housing bodies to qualify for funding under the Government’s scheme, from home builder Glenveagh.
Applications open on the Clúid website today, with the properties available to move into in early August.
Prospective applicants are obliged to have a net household income of no more than €53,000 per annum; not to be in receipt of any social housing supports ; and not own a property.
Minister for Housing Darragh O'Brien said establishing cost rental as a new form of tenure in Ireland was a key commitment in the programme for government. "In less than one year we have announced funding for this new model, opened a call for proposals from our AHB sector, put cost rental on a legislative footing and now here today we announce the first cost rental homes," he said.
“Cost rental aims to help households with moderate income access affordable, secure tenancies in accommodation suitable to their needs,” he said.
Budget 2021 ringfenced €35 million in funding for the scheme, which is expected to deliver 440 homes in Dublin and Cork this year. The Housing Finance Agency has also made financing of up to €100 million available to support the delivery of homes under the scheme.
"The introduction of the cost rental scheme marks a fundamental shift in the way people rent in Ireland," Fiona Cormican, Clúid's new business director, said.
“Cost rental offers long-term, secure tenancy at a reduced rent, at least 25 per cent below the average local area rent and for some properties a discount even greater than 25 per cent will be offered,” she said.
“As long as your rent is paid and the tenancy agreement is followed, you can continue to rent the property for as long as you like. Combined, this security of tenure and affordable rent will change how we think about renting in Ireland.” Ms Cormican said.
Glenveagh’s 385-unit Taylor Hill development contains a mix of private, social and cost rental homes.