Rent supplement rent limits to reflect real prices and promote fair rent ? ? Cu?v


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New rent supplement limits outlined following rent limit review

“The Department of Social Protection funds approximately 50% of the private rented accommodation in the country and with that level of influence on rents, it is essential that the maximum rent limits for rent supplement reflect real prices so that landlords are charging a fair rent and the State pays a fair price,” Minister Ó Cuív stated today (10 th June 2010).

“Our priority is to ensure that the 95,000 households supported by rent supplement can secure quality accommodation at a fair rent and that landlords are not charging artificially high rents. Reducing the rent supplement rent limits to reflect real prices will assist us to do that and will promote a fair rent.

“The cost of rented accommodation has fallen since its peak in 2007. Rental prices were last reviewed in June 2009 and have fallen since then. The current regulations that set the maximum rent limits for rent supplement have served us well but they have now served their time. The new rent limits which I am outlining today will reflect real prices in each county and Community Welfare Officers will continue to have flexibility to take account of the reality in their own localities.”

Minister Ó Cuív continued: “The new maximum rent limits for the rent supplement scheme will apply firstly to new claims for rent supplement and will then apply to existing claims as they come to be reviewed.”

The new rent limits follow a review undertaken by the Minister’s Department over the last 12 months.  The maximum rent limit refers to the maximum rent which can be charged on a property where rent supplement is payable.  In 2009 the Department paid over €500m in rent supplement.

The Minister added: “The State also needs to ensure that the person in private rented accommodation and not receiving rent supplement is not paying an artificially high rent. It is essential that State support for rents are kept under review, reflect current market conditions and do not distort the market in any way.”

The proposed new limits will ensure that different categories of eligible households can continue to secure and retain suitable rented accommodation, having regard to the different rental market conditions that exist in various parts of the country.

This most recent rents review undertaken by the Department of Social Protection used publicly available data to ascertain both market trends and the current rent asking prices for one, two and three bedroom properties throughout Ireland on a county by county basis. Information from the Private Residential Property Board databases; the CSO Rental Indices, in addition to the various rental market reports was utilised. Consultation with certain local Superintendent Community Welfare Officers also took place as part of the review.

As part of the consultative process, the views of various bodies were sought. The overwhelming view from the consultation process was concerns over the rent limit for single people. These views were supported by the analysis. Accordingly it is not proposed to reduce single rates for people living on their own for the majority of counties.

Dublin is generally unaffected under the proposals as average asking prices from the review’s analysis are still broadly in line with the current rent limits. Rent supplement limits specific to the Fingal Local Authority are being introduced to reflect the different levels of rent in the area.

EDITOR’S NOTE

New Limits

Current Single Person Rent Supplement Monthly Rate (in non-shared accommodation): Range €368 - €529; this rate is to remain largely unaltered.

Current Couple / One Parent Family Rent Supplement Monthly Rate (OFP) with 1 Child Rate: Previous Range €568 to €930;New Range €400 to €930.

Current Couple / OPF with 3 Children Rent Supplement Monthly Rate: Previous Range €663 - €1,110. New Range €500 - €1,100.

The purpose of rent supplement is to provide short-term support to eligible people living in private rented accommodation, whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. The amount of rent supplement a person can receive from the State depends on where they live in the country, their personal circumstances and what type of accommodation they have.

Since the Department’s last rent review in June 2009, rental values have fallen on average by 9.5% (CSO data). Other data sources indicate rental price drops of over 16% in the nine months to December 2009.

The new limits announced today will yield a minimum of €20m in savings for the Exchequer in 2010.  

Examples whereby rent supplement limits are too high compared to what is available for private market rent are as follows:

County Roscommon : The current rent supplement limit for a couple with three children or one parent family with three children is €780 per month. However, the average rental value for a 3 bedroom property in Co. Roscommon is €500 per month.

County Mayo : The current rent supplement limit for a couple or a one parent family with 3 children is €780 per month. However the average rent for a 3 bedroom property in Co. Mayo is €600 per month.

County Wexford : The current rent supplement limit for a couple or a one parent family with 3 children is €685 per month. However the average rent for a 3 bedroom property in County Wexford is €650 per month.  

ENDS

The following grids are below:

Maximum amount of monthly rent in respect of which a rent supplement is payable June 2010 to December 2010. By County and Houshold Composition.
 County  Single Person in Shared accomodation  Couple in Shared accomodation  Single Person  Couple with no Children  Couple with 1 child or one parent family with 1 child Couple with 2 children or one parent family with 2 children   Couple with 3 children or one parent family with 3 children
 Dublin-Fingal  €350  €390  €529  €770  €930  €1,000  €1,050
 Dublin-Other Local Authorities  €390  €400  €529  €800  €930  €1,050  €1,100
 Wicklow  €315  €325  €529  €710  €850  €900  €910
 Kildare  €320  €325  €485  €600  €750  €850  €900
 Longford  €195  €200  €345  €350  €400  €450  €500
 Westmeath  €220  €260  €407  €450  €550  €590  €600
 Offaly  €220  €240  €407  €485  €550  €590  €600
 Laois  €235  €240  €407  €485  €550  €590  €600
 Limerick  €255  €260  €446  €500  €605  €650  €700
 Tipperary North  €260  €265  €407  €450  €550  €640  €655
 Tipperary South  €250  €255  €468  €455  €555  €645  €650
 Clare  €220  €260  €407  €450  €550  €600  €650
 Louth  €285  €286  €468  €529  €600  €685  €700
 Monaghan  €195  €200  €368  €390  €500  €540  €550
 Cavan  €195  €200  €368  €400  €450  €500  €510
 Meath  €260  €265  €468  €550  €650  €700  €750
 Donegal  €235  €240  €368  €455  €500  €550  €560
 Leitrim  €190  €200  €368  €390  €400  €450  €500
 Sligo  €220  €240  €407  €485  €540  €550  €600
 Wexford  €260  €300  €468  €520  €600  €650  €660
 Waterford  €270  €280  €468  €470  €550  €650  €660
 Carlow  €260  €300  €468  €500  €600  €650  €660
Kilkenny  €260 €300  €468  €520 €600  €650  €665
Kerry  €235 €240  €407  €500 €550  €640  €650
Cork  €285 €290  €468  €610  €705  €765  €800
Mayo  €220 €225  €450  €455  €550  €600  €610
Galway  €255 €260  €468  €550  €700  €750  €760
Roscommon  €190 €195  €370  €375  €450  €500  €520

Maximum amount of monthly rent in respect of which a rent supplement is payable June 2009 to May 2010. By County and Houshold Composition.
County Single Person in Shared accomodation Couple in Shared accomodation Single Person Couple with no Children Couple with 1 child or one parent family with 1 child Couple with 2 children or one parent family with 2 children Couple with 3 children or one parent family with 3 children
Dublin €399 €399 €529 €806 €930 €1,110 €1,110
Wicklow €399 €399 €529 €767 €880 €1,110 €1,110
Kildare €399 €399 €485 €719 €880 €1,110 €1,110
Longford €286 €286 €407 €485 €568 €624 €685
Westmeath €286 €286 €407 €485 €568 €646 €706
Offaly €286 €286 €407 €485 €568 €646 €706
Laois €286 €286 €407 €485 €568 €646 €706
Limerick €286 €286 €446 €529 €607 €685 €745
Tipperary North €286 €286 €407 €529 €607 €685 €745
Tipperary South €329 €329 €468 €529 €607 €685 €685
Clare €286 €286 €407 €529 €607 €685 €745
Louth €286 €286 €468 €529 €646 €685 €806
Monaghan €286 €286 €368 €490 €568 €607 €745
Cavan €286 €286 €368 €490 €568 €607 €745
Meath €286 €286 €468 €568 €706 €767 €806
Donegal €286 €286 €368 €485 €568 €598 €685
Leitrim €286 €286 €368 €485 €568 €598 €663
Sligo €286 €286 €407 €485 €607 €685 €685
Wexford €329 €329 €468 €529 €607 €685 €685
Waterford €329 €329 €468 €529 €607 €685 €685
Carlow €329 €329 €468 €529 €607 €685 €685
Kilkenny €329 €329 €468 €529 €607 €685 €685
Kerry €308 €308 €407 €620 €620 €741 €793
Cork €308 €308 €468 €620 €706 €767 €819
Mayo €286 €286 €468 €468 €706 €780 €780
Galway €286 €286 €468 €568 €706 €806 €806
Roscommon €286 €286 €468 €468 €706 €780 €780

Last modified:11/06/2010
 

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