Affordable Housing in Ireland: Cost Rental, HAP and AHB Delivery

Cost Rental is a tenure where the rent is set to cover only the cost of delivering and managing the homes, with no profit element. Net household income must be below €66,000 in Dublin and €59,000 elsewhere, the household must not own other property, and the tenancy is on a 6-year lease with annual rent reviews capped at HICP inflation.

The Housing Assistance Payment is paid by the Local Authority directly to the landlord. The tenant pays a differential rent to the Local Authority based on household income, typically 10 to 18 percent of net assessable income. HAP rent limits vary by Local Authority area and household size, with a discretionary uplift of up to 35 percent above the standard limit available in tight markets.

Differential rent is the rent charged to tenants in Local Authority and AHB social housing, calculated as a percentage of household income. Each Local Authority operates its own scheme, but most assess net income from the principal earner plus a contribution from subsidiary earners and dependants. Income is recalculated on a change of circumstances or at annual review.

Part V of the Planning and Development Act 2000 requires developers of 5 or more units to provide up to 20 percent of the development to the Local Authority for social, affordable purchase or Cost Rental. The Affordable Housing Act 2021 increased the headline rate and clarified the calculation. Most Part V negotiations now settle on a mix of Cost Rental and social housing units at agreed unit prices.

Approved Housing Bodies are independent not-for-profit landlords approved by the Department of Housing. They deliver and manage social and Cost Rental housing on long-term leases. Tenancy management is broadly similar to Local Authorities (differential rent, RTB registration, anti-social behaviour procedures) but AHBs typically run leaner teams and rely more heavily on integrated housing management software.