COST-RENTAL APARTMENTS which opened for applications in the last two weeks have attracted thousands of applications.
The 621 homes cost-rental apartments in four locations in Dublin and Kildare are being delivered through the Land Development Agency’s Project Tosaigh initiative.
Applicants for the cost-rental homes must have a net household income of below €66,000 in Dublin and €59,000 outside Dublin, with rents of the new apartments set at least 25% lower than market rates.
A total of 3,351 applications were received in one week for just 247 homes at Barnwell Point Apartments in Hansfield in Dublin 15.
Rents at this development range from €1,050 for a studio, €1,225 for a 1-bed apartment and €1,400 for a 2-bed apartment. Applications opened on 18 January and closed 25 January.
A total of 1,269 applications were received for the 52 cost-rental apartments in Harpur Lane, Leixlip, Co. Kildare, which opened 15 January and closed 22 January .
Rents at Harpur Lane are €1,357 for a one-bed and €1,585 for a two-bed.
For the 236 apartments located at The Quarter, Citywest, Dublin 24, 456 applications have been received in the last two days with the application process closing on 31 January.
The rents at Citywest are priced at €1,390 for a 1-bed, €1,580 for a 2-bed and €1,750 for a 3-bed.
The application process for 86 apartments in Dun Óir in Kilternan in Dublin, with rents of €1,300 for a one-bed apartment and €1,450 for a two-bed, will be announced in the coming weeks.
Those that apply are selected via a lottery process.
Speaking this week at the launch of the latest Housing for All progress report, Housing Minister Darragh O’Brien said the government has approved 3,000 affordable cost-rental tenancies, investing a €600 million.
“There’s more coming through every week,” he said, adding that these secure tenancies are a very popular form of tenure.
The report found that 32,695 homes were delivered in 2023, exceeding the target of 29,000 set out in the Government’s housing plan – and a 10% increase on 2022 figures.
The number of social and affordable houses built in 2023 has not yet been calculated; the government had set out to build 9,100 social homes and 5,500 affordable and cost-rental homes in 2023 in its housing plan.
On the issue of the cost-rental homes which attracted thousands of applications, Sinn Féin’s Eoin Ó Broin recently criticised the cost of the rents, stating that they should not be dubbed ‘affordable’.
He said €1,390 for a 1-bed; €1,580 for a 2-bed; and €1,750 for a 3-bed “are not affordable rental”.
“Buying expensive turnkey units from developers is not cost rental. The LDA model in broken,” he said.
A spokesperson for the housing minister told The Journal that under the cost-rental model, rents for homes are set to cover only the cost of financing, building, managing and maintaining the homes over a set and long period of time.
“That means they are not driven by profits. Cost rental homes which are funded by the State whether they be delivered by the LDA, Approved Housing Bodies or Local Authority’s must be provided to tenants with a minimum of 25% discount below a comparable market rent.
“This discount to market rent will vary and may be greater than 25% for many cost rental homes. In fact we’ve seen some homes delivered at rates which are over 40% lower than local market rents.
“Minister O’Brien awaits the publication of Deputy O’Broin’s long promised affordable housing plan and his detailed costings on how the party plans to provide cost rental homes.”
When asked by The Journal how the rents are calculated, a spokesperson for the LDA said:
“The LDA uses data on rents provided by independent estate agents , which are based on market analysis. The rents for cost rental apartments are set following a detailed external approval process that ensures compliance with the legislation governing affordable housing.”
Despite the housing delivery figures released this week showing the government met its overall target last year, the latest figures from the Department of Housing show that 9,356 adults and a 3,962 children were in emergency accommodation last month.
The figure of 13,318 is a drop from the 13,514 people living in emergency accommodation in November.
Despite the numbers seeing a drop since last month, the total number of people living in emergency accommodation in December 2023 has increased by 13.5% since December 2022 when 11,632 people were recorded in emergency accommodation.
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