The high number of applications for LDA cost-rental apartments highlights the affordability crisis in the Irish housing market.
LDA apartments demonstrates the popularity of the new rental model which offers long-term tenures and stable rents typically 25 percent below local rates.Applications for the apartments, with rents from €1,175 a month for a studio, €1,250 for a one-bed, €1,575 for a two-bed and €1,775 for a three-bed, were open for just one week. By Tuesday afternoon 4,608 completed applications were received but just under half of these applicants – 2,215 – met the eligibility criteria for the scheme.
Cost-rental housing is aimed at low- and middle-income workers earning up to €66,000 after tax. However, other eligibility terms apply. Applicants must be able to demonstrate they can afford the advertised rent, which should not account for more than 35 percent of their monthly net income, although some flexibility is allowed for renters who can show they were managing to pay higher rents in the private sector. Housing academic Lorcan Sirr said the huge number of applicants for such high-priced rental accommodation points not to the need for more rental accommodation, but to the lack of housing available to buy. “The rent for these is the equivalent of a mortgage. Actually, the three-bed is more expensive than a €350,000 mortgage. This says to me there are an awful lot of people out there desperate for a home to own, who could afford mortgage repayments, but can’t find anywhere to buy.” In another indicator of the big affordability challenge for prospective purchasers, a report on Friday shows first-time buyers are typically paying €88,000 more for a house now than they did five years ago.(BPFI) said the median income of first-time buyers buying a new property in the first half of 2024 was €90,000, while their median age was 35. This is significantly older than in previous decade
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