ESRI: Cost Rental Scheme Flawed but Aids Housing Affordability

A recent analysis by the Economic and Social Research Institute (ESRI) sheds light on Ireland's cost rental housing scheme, revealing its significant potential for affordability while also identifying key areas for improvement. The study, funded by the Department of Housing, confirms that cost rental properties offer a substantial discount of 29.9% compared to private market rents, a crucial benefit for households struggling with rising accommodation costs.

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These findings show a clear affordability benefit for households in Cost Rental properties relative to what they would face in the private market.

However, the ESRI's findings also highlight a geographical concentration of the scheme, with a notable presence primarily in the Dublin area. This focus, while understandable given the capital's acute housing challenges, raises questions about accessibility for those in other urban centers and regional towns facing similar affordability pressures. The report rightly emphasizes the importance of expanding the scheme's reach to these areas to ensure a more equitable distribution of its benefits.

Professor Conor O'Toole, a co-author of the report, underscored the clear affordability advantage for households participating in the cost rental scheme. To further enhance its impact, the study recommends periodic reviews of critical parameters such as income thresholds and affordability criteria. Such adjustments are vital for broadening access to the scheme and ensuring it effectively supports a wider geographic delivery of affordable housing solutions across the country.

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The study said that the scheme is concentrated in Dublin area. The ESRI said expanding the presence of cost rental to other urban centres and regional towns facing affordability challenges will be important.

While the cost rental model demonstrates a promising approach to tackling housing affordability, its success hinges on strategic expansion and continuous refinement. By addressing the current geographical limitations and regularly reassessing eligibility criteria, Ireland can maximize the scheme's potential to provide much-needed relief to a larger segment of the population facing housing insecurity.

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periodic reviews of the scheme, such as income thresholds and affordability criteria, could help broaden access across and support wider geographic delivery.