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28th Jun 2016

Rent allowance set to increase across the country

Tony Cuddihy

If you’re renting a property in Cork or Dublin, there could be some financial relief coming your way.

Minister for Housing Simon Coveney has announced that people in Cork will receive up to 21% more in order to deal with the rising cost of accommodation, with people in Dublin set to receive 29% more and others in less populated parts of the country receiving up to 15% more.

The measure will come into effect this Friday, and will cost the government €15 million in 2016.

“As Minister for Housing, I am determined to tackle the housing crisis that Ireland is currently experiencing. This requires a range of measures from all sectors involved, both short and long term,” said Mr Coveney, Minister for Housing, Planning and Local Government.

“I’m confident that the new limits being announced today will help alleviate the pressure experienced by families in the private rented sector, while other longer-term housing measures are put in place.

“They will help households to remain in their existing homes while also providing sufficient flexibility to enable people to source accommodation in a constrained rental market,” he added.

According to The Irish Times, the maximum rent payable in Dublin is limited to €1,000 per month for a couple or parent with three children. This decreases to €350 for a single person.

Generally, people qualify for rent supplement if their only income is a social welfare payment, while there are certain other conditions.

Currently, the highest rent a couple with two children can pay in Dublin is €975-a-month (Fingal, where it is €900, aside). In Cork and Galway it is €725, while in Limerick it is €550.

Minister for Social Protection Leo Varadkar added that the new measures give a safety net to people who require rent allowance.

“These new rent limits reflect the fact that rents are rising right across Ireland and are back to their peak levels in some places,” he said.

“Through a combination of increased rent limits and the ongoing flexibility and discretionary increases provided by my Department’s Community Welfare Service staff, we will provide more stability for tenants and reduce the danger of families becoming homeless when their rent is increased.

“This Government wants to ensure that our recovering economy works for everyone. We aim to achieve that by promoting an enterprise economy, making work pay, investing in public services, ensuring opportunity and a fair go for everyone,” he added.

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