New cost rental scheme to be introduced
A new cost rental scheme based on a European model, will aid renters who are heading towards retirement.
That’s according to the Housing Minister, who was responding to research that found older renters are more likely to live in poverty in years to come.
The ESRI study found 65% of people aged 35 to 44 are likely to become homeowners by retirement, compared to 90% of those currently over 65.
Minister Darragh O’Brien says they hope the new cost rental scheme will see secure tenancies and help renters heading towards retirement:
“We’ve started cost rental, so we have tenants in place that are already paying 40 or 50% below market rent. This is a European type of renting, and we’ll see hundreds of more tenancies in place now this year and why we’re able to do that is the state is backing those rents and they’re secure tenancies of 40, and in some instances, 70 years. So we need to be looking at that, particularly for that cohort of people who are getting older who haven’t been able to purchase a house over the period over that period of time.”