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Coveney's Cost Rental Plan won't work - Ó Broin

29 December, 2016 - by Eoin Ó Broin TD


- Relegates Councils to Marginal Role in Housing Provision

Sinn Féin Housing spokesperson Eoin Ó Broin TD has said that Minister Coveney’s ‘cost rental plan is ill conceived, badly designed and wont work.’ The Dublin Mid West TD also said ‘once again it highlights the Governments over reliance on the private sector and their determination to relegate Councils to a marginal role  in housing provision.’

Deputy Ó Broin said:

“There has been a lot of discussion on how to provide affordable long term rental housing for people on average incomes who don't quality for social housing. Much of that discussion has focused on the ‘cost rental model’.

“Minister Coveney’s re-announcement today of a private sector led cost rental model is ill conceived, badly designed and work work. Once again it highlights the Governments over reliance on the private sector and their determination to relegate Councils to a marginal role in housing provision.

“Cost rental housing –providing housing to working tenants on average incomes  at fixed rents over a long period of time- should be seen as a key element of public housing provision not as another opportunity for private developers to make profit.

“Cost rental is a good idea if it is designed well and delivered by the right body. The Minister’s proposal to link  rents to percentage of existing market rents will not guarantee affordability. Instead rents should be linked to the cost of servicing the financing of the property and the lifetime cost of maintaining the property.

“In Sinn Féin’s view the private sector is not  equipped to deliver cost rental. Rather Local Council’s and Approved Housing Bodies should be required to include cost rental accommodation within all future housing developments.

“This would generate a greater income mix within new housing developments. It would also provide the housing body with a more sustainable rental income for the long term maintenance of its housing stock.

“I would urge the Minster and Dublin City Council Housing Officials to use the O’Deaveny Gardens pilot project in Dublin to test run a model of cost rental delivered by the Council and with a rent based on the cost of the unit rather than market rent.

“This would ensure that 50% of the housing on the site remains public with 20% being used for cost rental managed by the Council. This model is better for the tenant, for the Community and for the long term stability of the public housing stock.” ENDS

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