Housing Minister Darragh O’Brien has launched the Government’s first cost rental scheme of 25 homes.
The 25 properties are in Balbriggan in north Co Dublin and will be rented to qualifying tenants at rates of between €935 and €1,150 a month, which the Minister said is at least 25% below the market rate.
It is the first of seven schemes due for completion this year, which will see 440 affordable homes provided.
But Mr O’Brien came in for immediate criticism from the Social Democrats.
The party’s housing spokesman, Cian O’Callaghan, claimed Mr O’Brien’s plans for cost rental housing have “been distorted by a Minister who can’t see beyond private interests.”
Mr O’Callaghan said: “The Government is stretching the concept of cost rental to breaking point.
“A progressive vision for a new form of not-for-profit housing has been twisted into a for-profit model by a Fianna Fáil Housing Minister who can’t see beyond private interests.
“The cost rental model should ensure rents are kept low by linking them to the costs of construction and long-term property maintenance.
“Private profit is stripped out.
“It’s meant to be a move away from extortionate market-driven rents to provide an affordable and sustainable solution for renters.
“However, the Government’s Affordable Housing Bill allows for private investors and investment funds to provide cost rental and allows for equity returns.
“By any definition introducing profit into this model means it is no longer cost rental.
“This is a very different version of cost rental to the one articulated by the Green Party in opposition.”
