Tenants living in social housing provided by Dublin City Council will see their rents increase significantly from next April. Under new payment guidelines, some tenants will face rent hikes of more than 50 per cent. The move is part of a broader plan by the council to bridge a €55.5 million funding gap in housing maintenance costs.
In one of the tightest votes in years, city councillors on Monday night voted by 31 to 30 to pass a budget of €1.69 billion to run the city next year. The budget includes rent rises for tenants of council flats and houses, starting from April. It is expected that this will provide additional income of €24.8 million for 2026 and €33.1 million over the course of a full year.
The council’s management has the power to set rents for social housing tenants. Councillors do not have this power, but they can refuse to pass the annual budget if they do not agree with its provisions. However, in doing so, they would risk being removed from office by the Minister for Housing and Local Government.
People Before Profit councillor Conor Reddy proposed that instead of increasing rents, commercial rates should be increased by 15 per cent. He suggested a fund be set up to supplement this cost for businesses with rates bills under €100,000. His amendment was defeated by 31 votes to 28.
READ MORE
For the first time in 30 years, the council is changing how it calculates rents so higher earners pay more. Despite this, tenants of all incomes can expect increases.
The move follows an analysis of tenant incomes, which found more than a fifth of council households have an after-tax income of greater than €1,000 a week. These households are paying heavily subsidised rents, with the average charge across the scheme €83 per week.
The council operates a “differential” rent system, with rents based on the net incomes of tenants. 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 next 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 earner’s contribution would almost double to €40 each a week. As well as this, 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 council said the current system “benefits higher income households in tenancies”.
[ Average rents at almost €4,000 a month in Ireland’s priciest areaOpens in new window ]
While the new system would result in increases across the board, it is envisaged that the lowest-income tenants will pay about 10 per cent more, with the rents of higher earners increasing at a greater rate.
“The measures we’ve introduced focused on protecting those on the lowest incomes,” said Mick Mulhern, the council’s head of housing.
More than half of principal earners have a net income exceeding €400 a week. If someone at the lowest end of that cohort (on €400) lives alone, they can expect a 14 per cent increase. If they live with two adult earners, the rent will increase by 47 per cent. If there are four additional adults in the house, then the rent will rise by 60 per cent.
