Politics

Rent allowance increase only part of solution, says Focus Ireland

Housing crisis: Government needs to address landlords refusing supplement, says Allen

Sherry FitzGerald said the imbalance between supply and demand remains the foremost obstacle facing the market
Sherry FitzGerald said the imbalance between supply and demand remains the foremost obstacle facing the market
Vivienne Clarke
Tue Jun 28 2016 - 09:26

An increase in rent supplement is only part of the solution to the housing crisis, according to Mike Allen of Focus Ireland.

The increase, which is expected to be announced later today, is to provide extra financial assistance to people at risk of becoming homeless.

The Cabinet is expected to agree this afternoon to increase rent supplement and housing assistance payment with effect from next week.

Both allowances are paid to people who cannot afford the full cost of renting a home and are, in effect, top-ups to cover the full cost of the rent.

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Mr Allen, the director of advocacy at Focus Ireland told RTÉ's Morning Ireland that they had been seeking an increase in the supplement for many years.

"This increase is to be welcomed. The recommendation of the Oireachtas Committee was that the increase should be at market rates. I'm not sure that the increases suggested here would do that.

“As market rates have been going up people have been trying to pay the difference with their social welfare payments. These top-ups are illegal.

“I just hope that this increase in rent supplement is not swallowed up by an increase in rents.

“The last government made it illegal for landlords to refuse rent supplement, yet there are still adverts on websites where landlords say they won’t accept rent supplement. Why is this not being policed? It is another area that needs to be addressed.”

The Cabinet’s decision today means the maximum rents that may be paid by people receiving rent supplement and housing assistance payment will be increased from July in an effort to prevent people becoming homeless.

A memo from Minister for Social Protection Leo Varadkar would see the rent limits that apply in councils across the country increase by more than 25 per cent in some cases.

The move from Mr Varadkar, in tandem with Minister for Housing Simon Coveney, will see the limits increase in both urban and rural councils, although the exact increase will depend on the location.

Housing assistance payment is another form of housing support that is a long-term replacement for rent supplement.

It is expected the increase in limits for the remaining six months of this year will cost €15 million, with €12 million going on rent supplement. It will cost an estimated €30 million in a full year.