merrion street

Ministers Simon Coveney and Leo Varadkar speaking at the National Economic Dialogue earlier

Social Protection Minister Leo Varadkar and Housing Minister Simon Coveney have confirmed that Cabinet has agreed to increase rent limits under the Rent Supplement and Housing Assistance Payment schemes.

The new limits mean that people who cannot afford the full cost of private rented accommodation will receive greater assistance from the State from this Friday, July 1st.

Speaking following Cabinet, Minister Varadkar said:

This Government wants to ensure that our recovering economy works for everyone. We aim to achieve that by promoting an enterprise economy, making work pay, investing in public services, ensuring opportunity and a fair go for everyone. We must ensure that we have a strong safety net so that everyone has a roof over their head. In many cases, Rent Supplement or Housing Assistance Payment is that safety net.

Minister Coveney added:

I’m confident that the new limits being announced today will help alleviate the pressure experienced by families in the private rented sector, while other longer term housing measures are put in place. They will help households to remain in their existing homes while also providing sufficient flexibility to enable people to source accommodation in a constrained rental market.

There are increases in both urban and rural areas reflecting local rents, including a 25% average increase in Laois and Roscommon; a 21% average increase in Leitrim, Cork City, Longford, and Galway City; a 29% average increase in Dublin (outside of Fingal); a 19% average increase in Westmeath, Kildare, and Louth; and a 15% average increase in Cavan and Donegal. 

The new rent limits are benchmarked at the 35th percentile of agreed rents as collated by the Residential Tenancies Board. This measure will cost up to €15 million in 2016, representing €12 million under the Rent Supplement scheme and €3 million under the HAP scheme.

Read the full press release