Key city workers to have income assessed for ‘affordable rental’

Coveney says those in such accommodation will pay 70% of market rate in same area

Workers based in “key” city centre jobs, such as those in hospitals, will have their incomes assessed to see if they qualify for a new scheme that will offer accommodation for cheap rent.

Minister for Housing Simon Coveney plans to introduce a so-called "affordable rental" model that would see developers provide cheaper rental accommodation in exchange for State assistance.

This could mean the State either provides cheaper land to developers or else makes direct payments to a developer to allocate some of their accommodation as affordable rental. It will initially focus on the Dublin area but could be expanded, if needed.

Mr Coveney says the "rule of thumb" for affordable rental is that those in such accommodation will pay 70 per cent of the market rate in the same area. "What we are saying is we are going to look at, effectively, projects that can provide accommodation for key workers and for people who would otherwise be driven out of cities because they can't afford to rent in cities," he told The Irish Times. "Dublin is the obvious place to start."

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Privately owned

He gave the example of the O’Devaney Gardens development in Dublin’s north inner city, which will have 600 housing units when completed. Mr Coveney says that half will be privately owned, 30 per cent will be social housing and the remainder will be affordable rental.

Another prospect for the affordable housing model is the Poolbeg special development zone on Dublin’s south side, as well as St Michael’s Estate near the planned new children’s hospital at St James’s Hospital.

"We know, for example, that we are going to have a new children's hospital," Mr Coveney said. "Close to there is St Michael's Estate where we have a big redevelopment complex. So that is a very good place to have an affordable rental model so that nurses and junior doctors and security staff in the hospital and so on [have a place to live]." The qualification criteria will be based on income, otherwise those nurses and doctors will end up lobbing out in Naas or Kilcock or Navan and they drive in every day."

Minister for Public Expenditure Paschal Donohoe ruled out a rent subsidy for people earning below €55,000 during recent talks on Mr Coveney's rent strategy.

Concerns

Mr Coveney said there were concerns about effectively creating a new social welfare category, but that access to affordable rental would be based on income levels. He has also indicated that he will lobby Mr Donohoe for the expansion of a scheme announced last year to fund small infrastructure projects in an effort to speed up development.

The €200 million local government infrastructure fund is directed towards building access roads and other local infrastructure that may be lacking in certain areas, thus holding back the development of lands. Demand for the scheme is four times higher than can be accommodated.

Mr Coveney has indicated he will push for its expansion. “I suspect I will be making a case that it has worked. It’ll probably increase its return 10-, 20-fold; €200 million we think can deliver 15,000 houses.”