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Two thirds of renters want an affordable and secure long-term cost rental option

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John Coleman CEO of the Land Development Agency

John Coleman CEO of the Land Development Agency

LDA Shanganagh Development of proposed scheme

LDA Shanganagh Development of proposed scheme

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John Coleman CEO of the Land Development Agency

Two thirds of renters are interested in an affordable and secure long-term cost rental option, according to new research published today by the Land Development Agency (LDA).

The research, conducted by Behaviour & Attitudes, an independent market research company, found that 67pc of renters saw cost-rental as a housing option for them with 89pc saying they like the idea in principle.

The cost rental model seeks to separate rent levels from the market and instead charge rents that cover the costs of constructing and maintaining the homes, with rent increases linked to the rate of inflation, thereby providing tenants with a predictable and typically lower level of rent.

The costs of delivery and operation are covered, which also supports the sustainability and scalability of cost rental over the long term.

The chief executive of the LDA, John Coleman, said the agency carried out this research to better understand the aspirations and challenges faced by renters in Ireland.

“We believe the cost rental model that is central to the LDA’s strategy can help address a crucial gap in the market to give a fair deal to the many thousands of people who currently struggle to meet their housing needs in an affordable way.

“Our focus now is on using the increased resourcing and pipeline of sites made available as part of Housing for All to accelerate delivery,” he said.

Director of Behaviour & Attitudes, Larry Ryan, said the survey was designed to capture the views of the cohort of people who are likely have greater relevance to a cost rental solution.

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“We have focused on adult renters in the major urban areas and looked to get a detailed understanding of their situation and aspirations. Where cost rental was properly explained and understood it was viewed by a large majority as an attractive long-term solution,” he said.

Under Housing For All, the LDA will be the State’s primary channel for the development of cost rental housing, offering a fair deal for those who don’t qualify for social housing but cannot afford the private market.

The LDA’s model aims for tenants to pay about one third of their net disposable income on rent.

According to the survey, affordable rental levels that could only increase by limited amounts were identified as the prime factor that would make renting more attractive by 78pc of respondents.

The desire for home ownership remains strong in Ireland, with 84pc of respondents saying they aspire to own their own home at some stage.

The findings suggest that around one third of renters are paying unaffordable rents. The LDA’s research shows 32pc of renters pay more than this, rising to 38pc for the Dublin area, and one in six people are spending over half of their net income on their monthly rent.


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