Over the past 18 months, increasing demand for rented accommodation has led to escalating rents, particularly in large urban centres. In Dublin alone, rents are now 26 per cent higher than they were in mid-2011.

While the announcement of investment in social housing by the Government in yesterday’s Budget is welcomed, Threshold is deeply concerned that the Budget contains little to help those living in the private rented sector, who are struggling to meet the costs of rapidly rising rents.

Those who are dependent on Rent Supplement are being hardest hit by rent increases. Over 160 families in Dublin are now living in hotels after losing their rental accommodation, and in the vast majority of cases, this could have been prevented if there had been a modest increase in their Rent Supplement payment.

This is an issue that we have consistently highlighted in the lead-up to yesterday’s Budget announcement. It is extremely concerning that the Budget contains nothing to resolve the plight of those dependent on Rent Supplement.

Because investment in social housing came to a virtual standstill during the recession, families on low incomes were left with no choice but to turn to the private rented sector to find a home.  One in five families in Ireland now lives in private rented accommodation.

"Even if bulldozers are on building sites in the morning, it will take a number of years to see new social housing come to fruition."

Approximately half the 74,000 households currently availing of Rent Supplement should be moved on to the Housing Assistance Payment instead. This would remove the poverty trap inherent in the Rent Supplement scheme because the Housing Assistance Payment allows flexibility for claimants to enter the workforce. It would also address many of the administrative flaws associated with Rent Supplement. Although the Government has announced in yesterday’s Budget that 8,000 households will be supported through the Housing Assistance Payment next year, it is imperative that this scheme be mainstreamed more quickly.

Investment in Social Housing

The Government’s announcement of an investment of €2.2 billion to provide 10,000 social housing units over the next three years is a badly needed measure. It is promising to see the Government looking at more innovative finance models to provide for the high levels of social housing currently needed in Ireland. The establishment of an off-balance-sheet vehicle to provide funding for voluntary housing bodies and the focus on Public Private Partnerships are also welcome in this regard.

However, even if bulldozers are on building sites in the morning, it will take a number of years to see new social housing come to fruition. In the meantime, the problems in the rental sector remain unchecked.

The commitments in yesterday’s Budget will not be enough to fully address the current housing crisis, but they are a first step.

As a frontline service-provider dealing with 20,000 people every year, Threshold knows just how stark the situation is for low-income families living in rented accommodation. As the economy improves, we hope to see evidence that the Government is truly committed to tackling the current housing crisis by addressing the problems in the private rented sector, as well as providing increased levels of social housing.