The new cost rental scheme will mean that tenants could pay between 25% and 30% below market rents, says the minister

A NEW COST rental scheme will mean that tenants could pay 25% to 30% below market rents, according to Housing Minister Darragh O’Brien.

Speaking to reporters today on the 3.1 billion euro housing budget announced yesterday, the minister said the new cost rental plan costing 35 million euros will deliver 400 homes.

However, when asked for details on the rents to be paid by tenants, the minister said it depends on where the houses are located in the country.

He said they will be more detailed in legislation to be submitted to the Dáil before Christmas.

An affordable housing plan is also part of the minister’s goals for 2021.

O’Brien said today that the detailed preparation of the new scheme was approved last month, which will deliver 2,000 homes under the plan.

The minister said that “not all” of the 2,000 houses will be delivered next year.

He said that 75 million euros are allocated to the affordable housing plan.

The minister said next year’s promise to deliver 9,500 social housing was a significant increase from last year, a 22% increase, he said.

However, the minister acknowledged that just over 700 of the promised homes had been built this year by June, and claimed that Covid-19 restrictions had seriously affected the delivery of this year’s targets.

The minister is confident that the department will make up for the slow start, adding that it expects to reach 60-70% of this year’s goal by the end of the year.

As the country is likely to face further restrictions in the week and months to come, the minister said he would keep construction sites open even if the country goes to Level 4 or Level 5.

He said construction services are essential services, and stated that while the sector closed in the first wave of the pandemic, work practices had changed to ensure social distancing and other health measures.

“Construction will continue to be an essential service. I do not foresee a closure in the construction sector… we will not see a closure in the construction sector, ”he said.

Sinn Féin Housing spokesperson Eoin Ó Broin criticized the minister’s plans today, stating that the affordable housing scheme is “very unclear” and that “there are no targets on how many homes will be delivered through this fund in 2021.”

“The minister also announced a new affordable fund of 110 million euros. Part of this would be used to finance 400 rental homes at cost, although without a deadline for delivery. The rest will be used for a shared equity loan not yet specified for the purchase of private homes, ”he said.

One thing he agreed on with the minister is that construction workers should be classified as essential workers if the country moves towards stricter restrictions.