Protest to take place in Cork over proposed social housing rent hikes

Proposed changes to provide 'significant increased income from housing rents' to Cork City Council, increasing the takings from €46,185,300 this year to €57,352,500 in 2027

The current differential rent scheme, which aims to achieve equitable rents based on household income, has been operational since the 1980s. File picture

A protest will be held next week ahead of Cork City Council’s annual budget meeting to oppose planned social housing rent hikes, which could see rents doubling.

The draft council budget, set to be voted on next Monday, November 23, notes that the current differential rent scheme, which aims to achieve equitable rents based on household income, has been operational since the 1980s.

It sees the rent calculated at 15% of the assessable income of the principal earner together with a calculated contribution from any subsidiary earners in the household, currently capped at €23.80 per week.

The proposed change will increase the base rate from 15% to 17% of assessable income of the principal earner and will also remove the capping of rent payable by subsidiary earners.

This is set to provide “significant increased income from housing rents” to the council, increasing the takings from €46,185,300 this year to €57,352,500 in 2027.

Sinn Féin’s councillor Joe Lynch called for the planned hikes to be rejected by councillors when they vote on the budget on November 23.

Mr Lynch said: “Proposed changes to the way the council calculates rents will mean that a household of two employed adults, for example, may see their rent increase by €75/week and a household with three people working will see their council rent nearly doubling, with all tenants seeing an increase of some kind, including pensioners.

“Many adult children, who are working long hours and are trying to save for a home of their own, are back home living with parents due to the housing crisis,” will feel the changes the most, he said.

In the midst of a cost-of-living crisis — with the price of groceries skyrocketing and energy bills rising — people can’t give any more. This is the wrong thing to do.

"My Sinn Féin colleagues and I will oppose any increase in council rents, and we will vote against this budget,” which is set to also contain a 7% increase in commercial rates paid by businesses.

The party recently voted against an increase to the local property tax for homeowners approved by council, and he said that the “triple whammy” of increases was down to government failure to properly resource local government.

He invited everyone to attend the protest from on Monday, November 23, at City Hall, from 4pm.

It comes as Cork County Council recently passed its budget, on the second attempt, after the first attempt was shot down.