Threshold outlines supports renters need in upcoming budget

Threshold is calling for the re-introduction of a tax relief for renters, as well as an increase in Hap rates. Picture: Mark Stedman/RollingNews.ie

Threshold has demanded a range of measures from the Government in the budget to prevent renters having to choose between paying for rent or heating or food this winter.

The national housing charity is calling for the re-introduction of a tax relief for renters, as well as an increase in the Housing Assistance Payment rates.

Threshold also wants a €20m rent arrears fund to support renters experiencing financial difficulty.

It comes as spiralling rents and a shortage of rental accommodation continues to put pressure on people seeking to rent in the private market.

Threshold’s chief executive John-Mark McCafferty said: “Private renters must be a priority in this year’s budget. Renters are one of the groups hit hardest by rising inflation and are at greater risk of poverty in comparison to owner-occupiers, having sustained unrelenting rent increases since 2014. 

Private renters are now facing extreme financial uncertainty as the cost of energy, heating, transport and food has increased rapidly over the last year. Some may be forced to choose between paying for rent, heat or food this winter.” 

Threshold wants the re-introduction of the rent relief for private renters, which was removed in 2010, because of the recession. It says a similar scheme could now be supported by the data-sharing agreement between Revenue and the Residential Tenancies Board.

It also wants an increase to the base rates for the Housing Assistance Payment because it believes the current rates are not enough to help people meet rent costs.

The charity warned immediate actions must be taken by the Government “to protect against rising rent costs, exorbitant energy bills and the cost-of-living crisis, which are pushing many private renters further into financial distress or into homelessness”.

The current Hap rates in Cork City are €550 for one adult and €650 for a couple, while the highest family rate is €950. However, houses listed on Daft.ie for the city and suburbs on Wednesday ranged from €1,553 per month to €4,500.

In Kerry, one adult receives €380 while a couple gets €410. However, the cheapest property in the county on Wednesday was a one-bed apartment in Castleisland, with a rental tag of €550 per month.

According to Threshold, the upcoming budget on September 27 should also deliver measures to retain homes in the rental sector, via relief on capital gains tax.

Mr McCafferty said: “The only truly effective mechanism to increase affordability in the long-term is through reduced rents via the increased provision of affordable housing options. While the goal of [the Government's] Housing for All plan is to deliver increased affordable housing options, it will take some time for this to bring about increased affordability. 

"In the interim, landlords must be incentivised to keep tenants in situ even when selling property and tenants must be provided with relief from increasing financial pressures.”