Ireland’s first cost-rental homes are due to be constructed by three housing bodies this year across Dublin and Cork.
Around 390 homes will be built where rents are charged to cover the costs of construction and managing the homes, and where market forces do not come into play.
The deal would mean rents of at least 25pc less than open market values.
Approval has been given to housing bodies Respond, Clúid,and Tuath for the homes after €35m was made available in Budget 2021.
While the precise locations have not been published until commercial and contractual arrangements are complete it is understood 50 cost-rental homes at Enniskerry Road, in Dublin 18, are also due to be completed this year.
“Shortly before Christmas I put out a call to our approved housing bodies asking them to submit proposals for cost rental homes,” said Housing Minister Darragh O’Brien.
“Through the Affordable Housing Bill 2020, cost rental will be placed on a statutory footing and the conditional and operational matters for cost rental are being finalised as part of this process,”
“These homes will be made available to middle-income households, with a reduction of at least 25pc on open market rental values. It is my firm commitment that we build on this new scheme and expand it further so that many more tenants live securely in cost-rental homes,” he added.
Subject to the application, the Housing Finance Agency has also made financing of up to €100m available to support schemes approved under this measure.