Cost-rental figures don’t equal affordability

Senator Rebecca Moynihan
02 February 2021

Fianna Fáil must clarify what term loan they’re changing for the cost-rental of accommodation in Shanganagh , Dún Laoighaire, announced yesterday. Labour housing spokesperson Senator Rebecca Moynihan has raised serious concerns with the costing proposed by Fianna Fáil.

Senator Moynihan said:

“Based on figures from the Fianna Fáil press release, they are expecting anyone accessing cost-rental units in Shanganagh to be in the top 20% of earners. With a one bed priced at €1,000 per month, and rent of €2,000 required for a two-bed, serious questions must be asked about the affordability of this proposal.

“With rent of €24,000 a year for a two bed , a couple or a single parent with a child would need an income of €80,000 for it to be less than 30% of their income. How does this represent generally affordable housing?

“The most recent report carried out by Daft.ie shows that the average rent in South County Dublin for a two bed property is €1,919. What’s more, it currently costs €1,453 to buy a two bed house with a mortgage over 30 years in South County Dublin. So why is cost-rental in Shanganagh higher?

“I am really concerned by the notion that this is affordable or fair. We know that people who live in rental accommodation are at most risk of consistent poverty and this development is the perfect example of why we are in the depths of a housing crisis.

“If we are serious about solving the housing crisis, we need to place an emphasis on cost and affordable rental. The Minister needs a reality check if he thinks an annual rent bill of €24,000 represents affordability or will he commit to extending the term loads of cost rental so it is affordable for the majority of workers?”

 

 

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