Secure tenancies drive the desirability of Cost Rental homes – new report

Posted on: 12 September 2024

The first major piece of research into cost rental housing in Ireland, has found that that the long-term stability of Cost Rental housing is a key factor for nearly two thirds of respondents (63%).

The research also found that residents are also enticed by cost rental housing 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%).

The project was co-led by Dr Michael Byrne, University College Dublin and Dr Cian O’Callaghan, School of Natural Sciences, Trinity College Dublin, and was funded by The Housing Agency's Research Support Programme.

The research was conducted in partnership with Clúid Housing, Respond and Tuath Housing. A report on the research was launched today, Thursday, 12 September.

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.

Dr Cian O’Callaghan, Associate Professor of Geography, School of Natural Sciences, commented:

“Cost Rental is a potential ‘game changer’ in terms of the Irish housing landscape. It makes secure, non-market housing available to a much wider cohort of households. This study provides the first in-depth baseline of how the new tenure is experienced and interpreted by residents.

"The research found that access to Cost Rental has been transformative for many residents, offering them a sense of long-term security, ownership and pride over their housing, and is associated with many positive impacts. It shows that Cost Rental, while in its infancy, has been an important policy intervention.  Continuing to monitor its impacts on residents will be crucial to evaluating its success going forward.”

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.

 One respondent to the research 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.”

Utilising online surveys and a mix of in-person video call 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.”

The report, 'The impact of cost rental housing on social inclusion and wellbeing: affordability, security and community' by Dr Michael Byrne, Dr Cian O’Callaghan, Dr Sarah Sheridan and Dr Robert Sweeney, can be read on The Housing Authority website. 

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