Quietly-published Government report recommends hiking RAS payments to landlords

The Department of Housing report published last month also suggests introducing ‘finder’s fees’ for new properties

In a report apparently at odds with views Taoiseach Micheál Martin expressed in a recent 'Irish Examiner' interview, the Department of Housing calls for hikes in the level of payments councils can make to landlords, currently capped at 92%. Picture: iStock

A Government report has recommended a hike in payments to landlords renting out properties under the State’s rental accommodation scheme.

The report also suggests that ‘finder’s fees’ for new properties be introduced.

The recommendations are among a number contained in a report, quietly published by the Government last month, on the future of the rental accommodation scheme.

The recommendations appear to be at odds with Taoiseach Micheál Martin, who told the 'Irish Examiner' that the State is already pumping “huge subsidies” into the housing sector with €6bn allocated this year.

The Department of Housing report includes a call for hikes in the level of payments that councils can make to landlords, which are capped at 92% currently.

“In our consultation process there was broad consensus that the level of rent payable to private landlords is a major driver in landlords leaving the RAS [rental accommodation scheme] scheme,” the report reads.

It highlights that, between 2020 and 2023, 3,811 landlords left the rental accommodation scheme. This is compared to just 515 landlords who have entered the scheme.

The rental accommodation scheme is a scheme that sees landlords draw up individual contracts with councils, covering tenants with a long-term housing need. The council directly pays the landlord, with options for the tenant to pay a contribution to the local authority.

The report also makes a number of recommendations to urge more landlords to enter the rental accommodation scheme, including through front-loading payments from councils to landlords.

Reference is also made to rent pressure zones, where the Department of Housing states that a number of rental accommodation scheme landlords are caught in a “rent pressure zone trap”.

“At the introduction of the RPZ [rent pressure zones] legislation there were a number of landlords who were not up to date in seeking their rent reviews so they are now caught in a situation where they are receiving well below the equivalent of the 92% of market rent that they can receive under RAS,” the report reads.

It cites this as another reason why landlords are leaving the scheme.

It comes as the Government is coming under sustained criticism after Taoiseach Micheál Martin revealed to the Irish Examiner on Saturday that rent pressure zones could be abolished.

Sinn Féin housing spokesman Eoin Ó Broin said Mr Martin’s comments caused great concern among renters and described the remarks as reading like “the speaking notes of an industry lobbyist for institutional investors”.

However, Public Expenditure Minister Jack Chambers said any system that replaces RPZs will protect renters.

Mr Martin said that tax breaks for institutional investors in housing would be considered, as part of efforts to increase housing supply.