The Minister for Housing, Local Government, and Heritage, Darragh O’Brien has said he was delighted that a Dublin housing development that featured the first purpose-built Cost Rental homes in Ireland has won the Social Housing Development of the Year at the National Property Awards.
Minister O’Brien lauded the ‘Woodside’ scheme at Enniskerry Road, Stepaside, County Dublin, as a development where collaboration between various stakeholders showcased the type of innovative cost rental scheme that can be brought forward and gives the cost rental concept real substance and tangible impact on people’s lives.
The scheme of 155 homes (50 cost rental and 105 social housing) was delivered by Respond and Tuath Approved Housing Bodies in partnership with the Department of Housing, Local Government and Heritage, Dun Laoghaire Rathdown Council, the Housing Agency, and the Housing Finance Agency.
‘Woodside’ is a unique development, a mix of 1, 2, and 3 bedroom properties, built on public land, to be managed by Respond and Tuath Housing.
All of the 50 Cost Rental homes are 2-bedroom apartments. The Cost of Rental apartments will be let at a monthly rent of €1,200, a significant reduction when compared to market rents for 2-bedroom apartments in this location. The rent charged to tenants will cover the cost of delivering, managing, and maintaining these homes and will not be driven by market movements.
Minister O’Brien pointed out that Cost Rental is a new form of secure, long-term rental tenure where homes are made available to middle-income earners at below open-market rates.
“The homes at ‘Woodside’ have rents of approximately 40% below open-market rates. Under Housing for All, the Government’s plan for housing, 18,000 Cost Rental homes will be provided between now and 2030,” he said.
“Woodside, and other developments like it currently underway, show the delivery of affordable housing is happening and it’s making a positive difference. Ensuring there is affordable housing to rent is a Government priority. Cost Rental housing addresses the affordability challenges faced by those on moderate incomes who wish to rent a home. This model of housing is a new departure in the delivery of housing in Ireland, providing a new type of housing tenure in addition to social housing, private renting, and private purchase. It provides renters with the long-term security of tenure with a rent level significantly below open-market rates.”
The Department of Housing, Local Government, and Heritage have approved funding through the Cost Rental Equity Loan (CREL) Scheme for the development of approximately 900 Cost Rental homes, to be delivered in 2022 and 2023 by Approved Housing Bodies. An average of 2,000 homes will be provided per year, by the AHBs, local authorities, and the Land Development Agency (LDA) between now and 2030. Where State funding is made available, rents are targeted to be delivered at 25% below market rates.