The first homes to be delivered under the Government’s new cost rental tenure model have been launched in Balbriggan by housing agency Clúid.
The 25 new homes are a mix of two-, three- and four-bedroom properties.
Under the Cost Rental Scheme, rents for the homes are set at a minimum of 25% below open market values with prices for the Taylor Hill, Balbriggan homes starting at €935 per month.
Applications are officially open on the Clúid website from today, with the properties available to move into in early August.
Cost rental is a new concept in Ireland and a cornerstone of Green Party Housing policy whereby tenants will pay rents that are based only on the cost to build, manage and maintain the properties.
The rents will consequently be a minimum of 25% below open market value and are aimed at middle income households who do not qualify for other housing supports, but who are finding it extremely challenging to find affordable accommodation to rent on the open market.
The Balbriggan homes are conveniently located close to social, educational, commercial, transport and recreational amenities.
The properties are semi-furnished with white goods and flooring supplied. To apply for the cost rental homes, applicants are obliged to provide evidence of the eligibility criteria.
Should more applications be received than properties available, completed applications will be selected at random. The random selection system is automated and auditable to ensure a fair application process for all.
Speaking following the launch of the new homes, Darragh O’Brien TD, Minister for Housing, Local Government and Heritage, 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.
“Cost rental aims to help households with moderate income access affordable, secure tenancies in accommodation suitable to their needs.
“Rents in cost rental homes will be a minimum 25% below open market value and tenants will pay rent that covers the costs of delivering, managing, and maintaining the homes only.
“Today is a really exciting milestone in our delivery of cost rental. This year we will deliver 440 cost rental homes in total and we are working with AHBs and with the LDA to significantly scale up our delivery of much needed cost rental homes,” he said.
Minister Joe O’Brien also attended the launch at Taylor Hill.
“I am delighted to see the first cost rental homes being delivered in Balbriggan,” he said.
“Cost Rental homes are a cornerstone of Green Party housing policy and these new homes are coming as a result of the Green Party’s input into the Programme for Government to improve the supply and affordability of rental accommodation and the security of tenure for renters.”
“As part of the Programme for Government there is a commitment to develop a cost rental model for the delivery of housing that creates affordability for tenants and a sustainable model for the construction and management of homes. In doing this, we will be informed by international experience of the delivery of cost rental, such as the ‘Vienna Model’.
“This is a great day for Balbriggan and Fingal to be first to offer the cost rental option. The Government is committed this year to delivering 440 cost rental homes which will bring some must needed support to families who are struggling with exorbitant high rents in the open market.”
“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.” she said.