“The security is just a weight off my shoulders” Secure tenancies drive the desirability of Cost Rental homes

A new report – the first major piece of research into Cost Rental housing in Ireland – reveals that the long-term stability of Cost Rental housing is a key factor for nearly two thirds of respondents (63%). Residents are also enticed by Cost Rental due to the quality of the homes (60% rated as very important), the essential need for a place to live (63%) and because the rent was attractive (51%).

One respondent remarked: “It was the long lease … I think that was the decider … It’s very secure for me, if we want to have a baby, we need to be secure.”

Another resident commented: “It does genuinely feel like you’re moving into our own home. It’s the relief number one, that you know it’s not going to be sold … The security is just a weight off my shoulders, it’s just incredible.”

Cost Rental housing is a relatively new housing tenure in Ireland, designed for households ineligible for social housing yet facing difficulties accessing the private market. Since the first cost rental homes were delivered in 2021, over 1,700 homes have been delivered through Approved Housing Bodies (AHBs), local authorities and the Land Development Agency.

Key Findings
• 84% of respondents described their Cost Rental tenancy as very secure
• Only 24% worry about eviction, sometimes or frequently.
• Over 70% report having a positive relationship with their AHB landlord.
• 81% felt confident contacting their landlord regarding repairs – underscoring their sense of security.
• Many of the residents noted that the quality and size of their cost rental home was far superior to their previous accommodation in the private rental sector.

Despite the success of Cost Rental in delivering secure homes, research shows that challenges remain on affordability. Of tenants surveyed, rent represented 34.5% of their disposable income and concerns were raised around what would happen in the event of income loss in the future, including on retirement. Alongside security of tenure, a core aim of the cost rental model is increasing affordability. One of the ways this will be achieved is in increasing the number of cost rental homes available, alongside an overall increase in public homes, which can help to dampen rents across the wider rental market.

The research was conducted by researchers led by Dr Michael Byrne (UCD) and Dr Cian O’Callaghan (Trinity College Dublin). Utilising online surveys and a mix of in-person, video and telephone interviews, the research gathered insights from current residents of Cost Rental homes, provided and managed by Clúid Housing, Respond and Tuath Housing. Commissioned by these three AHBs and funded by The Housing Agency, the research aims to deepen the understanding of how this new tenure type impacts residents’ lives.

Sean O’Connor, Chief Executive Officer, Tuath Housing, commented: “We are pleased to launch this important cost rental research report in partnership with our fellow Approved Housing Body (AHB) partners, Clúid and Respond. The report highlights the vital role that cost rental housing plays in providing secure, affordable, and high-quality homes. Cost rental offers tenants the security of tenure, with rents that are stable and below market rates, allowing them to plan for the future and create vibrant, sustainable communities. Efficient and well-designed homes not only enhance the quality of life for our tenants but also support a more sustainable living environment. At Tuath, we are committed to delivering more cost rental homes that positively impact lives and communities across the country.”

Brian O’Gorman, Chief Executive Officer, Clúid Housing, remarked:“While affordability is often at the forefront of discussions about the housing crisis, what Cost Rental residents across the three AHBs are telling us is that security of tenure is even more important. The testimonies paint a disheartening picture of the physical and emotional toll caused by housing insecurity. This report is further evidence of just how vital it is that the delivery of good value, high quality, secure Cost Rental homes continues at scale. We acknowledge the current government’s support of this new tenure and call on all political parties to commit to the expansion of Cost Rental during the next term of government.”

Niamh Randall, National Spokesperson for Respond, added: “Cost Rental housing offers a vital solution for those caught in the gap between social housing and the private market. Approved Housing Bodies play a key role in delivering this much-needed tenure, ensuring not just affordability but long-term security and quality housing. The expertise and experience of AHBs is central to fostering positive landlord-tenant relationships, as reflected in the overwhelmingly positive feedback from residents. As we continue to scale up Cost Rental delivery, we remain committed to providing high quality, stable and secure homes for people and families across Ireland.”

ENDS

Notes to the Editor:
Niamh McGovern – Communications Officer – Respond
087 946 5633 niamh.mcgovern@respond.ie

Report
The Impact of Cost Rental Housing: Security, Affordability and Place
Authors: Dr Michael Byrne, Dr Cian O’Callaghan, Dr Sarah Sheridan and Dr Robert Sweeney
View the full report at cluid.ie/publication

What is Cost Rental Housing?
Cost Rental is a new, secure form of rental housing tenure in Ireland, designed for people whose income means they don’t qualify for social housing or other support, such as HAP, but who still struggle to rent on the open market. All Cost Rental homes have their rents set at a minimum level of 25% below the local market rents. The rents in Cost Rental homes are set to cover the cost of construction, maintenance, and operation of the development, ensuring long-term affordability for residents.

To be eligible for a Cost Rental home, applicants must be able to prove:
• Their net household income is below €59,000 per year (€66,000 for homes in Dublin)
• They are not receiving any social housing supports, such as HAP or Rent Supplement
• They can afford the rent
• They don’t own a property
• The household is the correct size for the home

The first Cost Rental homes in Ireland were launched in 2021.

About Clúid Housing, Tuath Housing and Respond
Clúid, Tuath and Respond are three of the largest Approved Housing Bodies (AHBs) in Ireland. They were the first organisations to deliver Cost Rental homes in Ireland, and manage Cost Rental homes in towns and cities across the country. The three AHBs have delivered more than 870 Cost Rental homes since 2021.