‘Urgent need’ in budget to raise rent supplement

Rent supplements must be increased as a matter of urgency in Budget 2016, the Simon Communities have said.

The call came as the Simon Communities launched their second report into the rental property market, revealing that 92% of properties were beyond the means of those on rent supplements.

The three-day snapshot study tracked rental properties falling within rent supplement and housing assistance payment limits in 11 areas including Cork City centre, Dublin City centre, Galway City centre, Kildare, Sligo town and Leitrim.

The report also reveals:

• Just 7.4% of the rental properties surveyed were affordable to those on rent supplements. There were no properties affordable for a single person on rent allowance in any of the five city centres studied;
• Nine properties were available nationwide to rent within the rent supplement / housing assistance payment limits for a couple;
• Nationally, 53% of the properties categorised as suited to a couple with child were within the rent supplement/housing assistance payment limits for a couple or lone parent with one child. The majority were one-bedroom apartments.

“These numbers are truly shocking when compared with growing housing need,” said Niamh Randall, spokeswoman for the Simon Communities.

“The question must be asked whether rent supplement remains fit for purpose in light of this evidence.”

The rent supplement/ housing assistance payment limits have remained unchanged since 2013 despite rent hikes of up to 25%.

Some 4,868 people are now housed in emergency homeless accommodation, including 707 families with 1,496 children, according to the Department of the Environment, Community and Local Government.

“Limits must be increased and long-awaited rent certainty measures must be introduced in Budget 2016 for this Government to start moving towards addressing the crisis,” said Ms Randall.

“This is about political will; the Government have the power to implement the changes needed. We urge them to do this on budget day.”

Minister of State for the Department of Social Protection, Kevin Humphreys, has in the past raised concerns that raising rent supplement limits will fuel rental inflation.

“Over 15,300 rent supplement tenancies have been awarded this year, indicating that landlords are accommodating significant numbers under the scheme,” the Department of Social Protection said in a response released by its press office.

“Rather than increasing limits at this time of this limited supply, rent supplement policy will continue to allow for flexibility in cases where landlords seek rents in excess of current limits,” he said.

Fr Peter McVerry, founder of the largest dedicated homeless charity in Ireland, said he isn’t confident the issue will be adequately addressed in the budget.

“Ideally, we’d see an increase in rent supplement combined with rent controls,” he said.