Monday 26 September 2016

'Sweeteners' for developers who agree to set rent for homes by up to 30pc below market rate

Published 24/06/2015 | 23:05

'Sweeteners' for developers who agree to set rent for homes by up to 30pc below market rate
'Sweeteners' for developers who agree to set rent for homes by up to 30pc below market rate

DEVELOPERS are to be offered a series of sweeteners in return for offering discounted rents to their tenants, under plans being spearheaded by Alan Kelly.

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The Environment Minister's proposals will see concessions offered to landlords who agree to set rent by up to 30pc below the market rate.

Read more here; Fears grant would push up home prices  

The carrot and stick approach is part of an array of measures aimed at introducing "rent certainty" into the marketplace.

The so-called "affordable rental scheme" is to designed to benefit low-middle income earners in urban areas who do not qualify for social housing.

Read more here: Landlords accused of 'downright extortion'  

These households, Mr Kelly says, are struggling to meet their accommodation needs in the private rented sector.

Mr Kelly told Labour TDs tonight the scheme will ensure "intermediate households in the private rental market are not forced into seeking social housing support" and will also contribute towards "stimulating the construction of new residential properties".

In return for offering rents of 70-80pc of the market rate, developers will be offered a series of concessions including:

* a low-interest loan

* a grant

* a provision of land

* a loan guarantee on private borrowing

Mr Kelly revealed the plans in a lengthy housing document presented to the Labour parliamentary party meeting.

Read more here: Kelly says 'controls' not the answer  

He added that the scheme will help to "promote an increased supply of rental properties which should also contribute to the economy and provide a supporting infrastructure for employment".

And he also confirmed plans to link rent hikes to inflation - in a bid to prevent spiralling rent hikes.

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