Richard Boyd Barrett warns HAP and cost rental risk homelessness
Richard Boyd Barrett criticised HAP and cost rental arrangements, arguing they leave tenants vulnerable when household incomes fall and rents rise. He warned the schemes can produce arrears and homelessness and urged the minister and local authorities to take action.
He said HAP and cost rental do not automatically adjust rents when household size or income changes as happens in social housing - tenants can face higher rents, reduced income and growing arrears as a result.
He described a tenant called Sylvia who had paid a top-up to a landlord, lost household members and carer income, and then faced a rent increase. Sylvia went to the local authority and was told it could not help, leaving her with mounting arrears and a risk of homelessness.
The minister acknowledged pressures on existing tenancies and said the department is actively considering affordability issues for existing HAP tenants. The minister noted that since 11 July 2022 local authorities have discretion to agree a top-up payment up to 35% above the HAP maximum rent (50% for homeless households in the Dublin region) and can, in some cases, apply a couple HAP rate to single-person households.
The minister said a review of existing HAP rent limits has been approved to ensure sufficient support for eligible households and that the department is finalising the review parameters. Richard Boyd Barrett warned the problem would become more widespread if the new housing plan effectively replaced differential rents and social housing with cost rental, and asked for follow-up on individual cases from the department.
Main concerns
He said HAP and cost rental do not automatically adjust rents when household size or income changes as happens in social housing - tenants can face higher rents, reduced income and growing arrears as a result.
Case example
He described a tenant called Sylvia who had paid a top-up to a landlord, lost household members and carer income, and then faced a rent increase. Sylvia went to the local authority and was told it could not help, leaving her with mounting arrears and a risk of homelessness.
Ministerial response
The minister acknowledged pressures on existing tenancies and said the department is actively considering affordability issues for existing HAP tenants. The minister noted that since 11 July 2022 local authorities have discretion to agree a top-up payment up to 35% above the HAP maximum rent (50% for homeless households in the Dublin region) and can, in some cases, apply a couple HAP rate to single-person households.
Policy review and next steps
The minister said a review of existing HAP rent limits has been approved to ensure sufficient support for eligible households and that the department is finalising the review parameters. Richard Boyd Barrett warned the problem would become more widespread if the new housing plan effectively replaced differential rents and social housing with cost rental, and asked for follow-up on individual cases from the department.
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Transcript
minister in traditional um council housing or social housing if your income changes the number of people in the house changes because kids leave or anybody leaves your income gets adjusted you don't get thrown out of the house you don't get threatened with possible homelessness you don't build up arrears your your your rent is adjusted to your means and to the number of people in the house that doesn't happen if you're in hap uh and by the way it doesn't happen if you're in cost rental uh so you can find yourself very quickly in trouble what are you going to do about that thanks deputy by barris um the hap scheme uh continues to play a vital role in housing eligible families and individuals at the end of q2 25 over 128 500 hap tendencies had been set up since the scheme commenced of which there were 551 000 households actively in receipt of hap support under happy tenants uh sources their own accommodation in private rented market this accommodation should be within the prescribed maximum hap rent limits which are based on household size and rental market within which within the area concerned where a tenant circumvented change including their household size they should notify the relevant local authority the authority can then review the household circumstances including relation to differential uh differential rent charge and the relevant hap rate to apply since 11th of july 2022 each local authority has statutory discretion to agree to a half payment up to 35 percent above the receive maximum rent limit up to 50 percent in the case of homeless households in dublin region additional flexibility is also given for local authority to apply a couple hap rate to single people person's household recognizing uh that newer tenancies are of a higher cost than existing tenancies the measure only applied to new tenancies is a matter for the local authority to determine if an application of discretion is warranted on a case per case basis and the level of discretion applied in each case local are encouraged to focus the application of discretion on alleviating a financial burden for hap tenants where possible particularly for those in different financial circumstances and i have recently approved the review of existing hap rent limits to ensure that there is sufficient support under the hap scheme to assist eligible households in in assessing accommodations in the private rental sector and my department is currently finalizing the parameters this review and maybe deputy barrett you might just uh we'll say expand a little bit on the specific circumstances you were talking about uh sylvia is in hap tenancy for five years um she also from the beginning was paying a top up to her landlord but she used to live with her elder son he's now moved out the landlord has also increased uh the rent and she used to get carers for her father but her father's passed away so she doesn't get carers so she's been hit three different ways uh with increased rent lower income and now less people in the house she went to the council as you proposed she should do and they said tough luck because the rent is 2000 to the private landlord because that's the problem with hap and are the council willing to help her out no they're not willing to because your rules would actually preclude it uh and therefore rent arrears are building up and fairly soon should be threatened with homelessness unless something is done and by the way the same thing is happening with cost rental uh with people where people move out and they're faced with the same rent and they've less income what are they supposed to do thanks uh deputy barris and um it's good to see you back to your to staying with your passionate best uh the department and more particularly the minister is i suppose is very aware of the pressures on existing tendencies because it's existing tendencies you're talking about and the particular issues around that are currently under active consideration by the department uh and there it's it's something that we're actively looking at uh about existing tendencies in terms of affordability so i note the point i don't know the particular circumstances regarding sylvia if you want us to follow up with with local authority we will if we can assist in any way but about what we recognize the point you make okay well i i appreciate that minister and i will send you on sylvia's details but as you can see there's a more general problem and i i can say there's actually somebody who works in here i won't give away their identity on a very modest income got a cost rental uh 1200 euro but their son was living with them who was earning son is now gone moved out and they are stuck with a 1200 euro rent but with half the income right what are they supposed to do what are they supposed to they haven't got the money to to pay for their son's rent as well but because cost rental doesn't work the same way as social housing where your rent is adjusted you found yourself something and this is going particularly given that your new housing plan is proposing essentially to do away with differential rents and social housing in favor of cost rental this is going to cause a big problem and it's going to be much more general and it's happening in hap right so a lot of people are getting caught with this and we're going to see more and more of it so there's going to have to be a plan would you pack because people will end up homeless from cost rental and from half tenancies that's what's going to happen you've got to address it and the councils have to address it uh thanks again uh deputy uh barrett so if you wish to send on the details regarding uh the lady you referenced sylvia as i said earlier the minister and the department are fully aware of the pressures people under it more particularly and obviously your question in terms of hap uh there's obviously an active view on the way in that particular regard we know the point you raise in terms of the cost rental as well and something that we will consider thank you