Tens of thousands of tenants living in social housing across Dublin city will receive letters from Monday notifying them of rent increases, averaging 30 per cent, which will kick in from April.
Residents of Dublin City Council’s 29,000 houses and flats, as well as tenants in the private sector in receipt of housing benefits such as the housing assistance payment (Hap) and tenants of approved housing bodies all face increases.
The council produced its new social housing rents policy, the first change to the rent system in 30 years, last November. However, Monday marks the first time individual tenants will be officially notified of how much additional rent they will have to pay.
Average rents will increase from €83 to €108 a week, but higher-income social housing tenants will face steeper hikes, with some seeing their rent bills increase by more than 50 per cent.
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The council is changing how it calculates rents so households with multiple incomes pay more, but tenants of all incomes can expect some increases.
The move follows an analysis of tenant incomes, which found more than a fifth of households living in city council houses and flats have an after-tax income of greater than €1,000 a week but were paying heavily subsidised rents.
The council operates a “differential” rent system, with rents based on the net incomes of tenants. Currently the principal earner in a household pays 15 per cent of their net weekly income exceeding €32. Up to four subsidiary earners pay a contribution, which is capped at €21 each per week, or a maximum of €84 in total.
From April, the principal tenant charge will rise to 18 per cent, but the unassessed portion of income will also increase from €32 to €55. Subsidiary earners’ contributions would almost double to €40 each a week and the cap on the number of subsidiary earners charged would be removed.
The council also intends to increase the assessable income of self-employed tenants. Currently, taxi drivers and other “non-trade” businesses are assessed on an “assumed net income” of €500 per week, while tradespeople, such as plumbers and electricians, are assumed to have a net income of €560 a week. This will be increased to €700 for all self-employed tenants.
The letters, which will be issued to all tenants from Monday, detail the new rents which will be charged from April 6th and warn: “you must pay your rent charge in full each week. Failure to do so will result in legal action to recover your home.”
The letter also instructs tenants to notify the council’s rent section of any change in circumstance, “providing employment income details and current pay slips for all working occupants and education details for those over 18 who are still in education, as it may affect your weekly rent charge”.
Details of support available for households facing “exceptional financial hardship” are included in the letter.
The council said 5,000 households on the lowest incomes will see increased weekly charges of €5 or less, while 6,000 households will pay €5-€10 more a week.
“Lower-earning households and those with dependent children will have increased unassessed income allowances and dependent deduction increases to lesson scheme impact,” the council said.
“Larger increases may be seen in households where there is more than one occupant in receipt of income. These households have previously paid a significantly lower percentage of household income than average rates.”
