Tenant-in-situ scheme collapse raises homelessness fears in Cork, Dublin and Limerick

A key scheme that kept families from homelessness has been paused as local councils face severe housing budget cuts

The tenant-in-situ scheme had seen local authorities authorised to step in and buy a rental property if the landlord was selling up, allowing the tenants to remain in place and continue renting.

Local authorities have been forced to put applications for a crucial scheme aimed at preventing families becoming homeless on hold due to a cut in Government funding, it has emerged.

The tenant-in-situ scheme had seen local authorities authorised to step in and buy a rental property if the landlord was selling up, allowing the tenants to remain in place and continue renting.

However, clarity on funding was only provided by the department of housing in late March, with councils in some cases being sale agreed on homes but unable to complete the purchase due to uncertainty over funding.

Cork City Council is among those who have said that it has been forced to curtail the tenant-in-situ programme over “inadequate” funding, and admitted it will harm its efforts to prevent families entering emergency accommodation this year.

Other housing schemes will also be affected by the capital funding allocation of €20m for Cork city this year, as set down by a recent Government circular.

In a reply to councillors this week, the council’s director of services in housing Alison O’Rourke said: “The funding allocation received by Cork City Council is inadequate to fulfil its existing commitments and the projected programme for 2025.” 

She said that the impact of funding on its acquisition programme will mean that its programme for this year “is now ceased”.

After reviewing the current programme and financial commitments carried over from 2024, we have determined that the allocated funding has been exhausted.

Cork City Council also said that the cessation of the tenant-in-situ programme is also expected to have a “significant effect on homeless preventions”.

Last year, it said the programme accounted for almost two in five (37.7%) homeless preventions in the city which included 51 families comprising 100 children.

In the first three months of this year alone, it has seen 104 eviction notices be issued and 39 new households have entered emergency accommodation on the back of such notices. Furthermore, it has had engagement with 33 households who are very soon to be evicted.

“The Council will pursue all avenues open to it, to assist with homeless prevention in such circumstances, however the availability of suitable and immediately available property for such large numbers will be limited,” Ms O'Rourke said.

Cork TDs and councillors have expressed deep concern at the developments.

Sinn Féin TD Thomas Gould has said his party will hold an emergency gathering at City Hall on Thursday over the “cruel decision”.

“The government must reverse this decision and provide funding,” he said

 This won’t reduce the need for housing, it will only reduce the numbers of families in homes. 

Separately, Independent Ireland TD Ken O’Flynn wrote to the ministers for finance and housing, saying: “This is not a matter of politics; it is a matter of principle, compassion, and basic decency.” 

In Limerick, it is understood that the council is no longer taking applications for the tenant in-situ scheme, with their allocated funding for 2025 to be used to clear an existing backlog of properties.

Limerick City and County Council previously said that 107 properties were put “on hold” for 2024, while awaiting a Government decision on funding allocations. The council will now receive €15m for the tenant in-situ scheme, alongside other acquisition schemes.

A note provided to local councillors outlines that the council is due to draft a "priority list" of properties that were put on hold last year.

Limerick City TD Conor Sheehan questioned what would happen to individuals who may miss out on the scheme due to the backlog.

“What is the Government’s plan? This is going to make people homeless,” Mr Sheehan said.

In Dublin, a number of councillors and TDs have flagged concerns that €95m allocated for four acquisition schemes will not be sufficient to last the year.

Mick Mulhern, the head of housing on Dublin City Council, indicated at the March council meeting that €45m of the funding would be spent on tenant in-situ acquisitions for 2024.

This means that just €50m would be in place for the entirety of 2025, across four separate schemes and not just tenant in-situ.

Sinn Féin’s housing spokesperson Eoin Ó Broin said: 'The direct outworking of the [housing] minister’s decision will be that more people will come into homelessness.' Picture: Liam McBurney/PA

Sinn Féin’s housing spokesperson Eoin Ó Broin said that this was not adequate to buy up the existing applications for the scheme in 2024, as well as new applications in 2025. He said:

The direct outworking of the [housing] minister’s decision will be that more people will come into homelessness.

Mr Sheehan said Mr Browne will need to do a “screeching u-turn” on the funding allocations or face rising homelessness figures.

Alongside funding reductions, local authorities are restricted in buying properties unless they meet a number of eligibility criteria, including two years of social housing supports and no longer applying to single people.

A department spokesperson said it is the clear focus of the Government to increase the supply of social and affordable homes, and eliminate long-term homelessness.

It said funding for the scheme would deliver “a similar number of houses as in 2024”.

“Local authorities should continue to take appropriate steps to ensure that their first response will be to support households to prevent homelessness in cases where tenants have been served with a notice of termination by their landlord,” it said. 

“All available options are considered in order to prevent homelessness.” 

One Government source highlighted the scheme was initially designed as a "last resort", but that some urban councils used it to increase their social housing stock.

They added it was not sustainable to allow landlords sell properties to local authorities into the long term.