Roscommon councillors are calling for a major overhaul of the way cost-rental housing is funded, arguing that the financial burden placed on local authorities is limiting their ability to provide homes for working households who cannot afford to buy or rent privately.
The issue was raised by Fianna Fáil councillor Paschal Fitzmaurice, who brought a motion before Roscommon County Council calling on the Government and Minister for Housing James Browne to fully fund the purchase of homes delivered through the cost-rental scheme.
The debate focused on a group of households that councillors said can find themselves caught between existing housing supports: earning too much to qualify for social housing while still struggling to secure a mortgage or afford private rents.
Cllr Fitzmaurice pointed to Roscommon County Council’s purchase of 40 homes in Castlerea for social housing as an example of how local authorities could potentially use public funding to expand housing provision.
He argued that cost rental could provide another route for households above the social-housing income threshold who are finding it increasingly difficult to secure suitable accommodation.
Councillors question the financial burden on councils
Several councillors supported the motion, with the discussion repeatedly returning to the amount local authorities may have to contribute when they deliver cost-rental housing.
Cllr Fitzmaurice told the meeting that Government support for cost-rental homes can be up to €150,000 in many urban areas, while he said lower amounts can apply in some smaller towns and rural areas.
He argued that this can leave a substantial proportion of the cost with the local authority.
The figures were raised during the council debate as part of the argument for changing the funding model. They do not mean that every cost-rental development receives the same level of State support, as funding arrangements can differ according to the scheme and delivery mechanism.
Cllr Emer Kelly said she was concerned about households who are working but do not qualify for social housing while having few affordable alternatives.
Other councillors made similar points, describing people who are unable to buy because of house prices and mortgage requirements while also struggling with private rents.
Independent councillor Micheál Frain described this group as people who can fall between existing housing supports.
The underlying concern was that a household can have an income that places it above the social-housing threshold without having enough disposable income to make home ownership or market renting realistic.
Council warns direct cost-rental delivery carries financial risk
The council’s Director of Services, Chris Flynn, provided an important qualification during the debate.
He said most local authorities are delivering cost-rental housing through Approved Housing Bodies or the Land Development Agency rather than directly taking on the projects themselves.
He was aware of another local authority that had delivered a small cost-rental scheme directly, but said the approach presented financial risks for councils.
“The reality of local authorities being able to commit and deliver directly cost rental is a risky proposition,” Mr Flynn told councillors.
He said the existing model would need to be “de-risked significantly” to make direct delivery a viable option for local authorities.
His comments suggest that the issue is not simply the amount of Government funding available for individual homes. Local authorities also have to consider the financial exposure involved in developing and managing cost-rental properties themselves.
That distinction is important because increasing the number of cost-rental homes depends not only on demand from tenants but also on whether councils and other housing providers can deliver projects on a financially sustainable basis.
Cost rental is designed for a group often missed by traditional housing supports
Cost rental was introduced to provide long-term rental accommodation for households who are above the income limits for social housing but still face affordability difficulties in the private market.
Instead of setting rents entirely according to prevailing market prices, cost-rental rents are intended to reflect the cost of financing, building, managing and maintaining the homes.
Government policy has aimed to make cost-rental rents at least 25% below comparable market rents in eligible developments, although the precise rent depends on the individual project and its costs.
That makes the tenure particularly relevant as rents and house prices remain high.
For a household that cannot meet the criteria for social housing but cannot raise a sufficient deposit or meet mortgage affordability requirements, cost rental can provide another route to more secure accommodation.
The problem highlighted in Roscommon is whether enough of those homes can be delivered.
Councillors say demand exists but supply remains limited
Fine Gael councillor Liam Callaghan said households can face difficulties on several fronts at the same time.
People seeking mortgages need sufficient income and savings, while those seeking social housing must meet the relevant eligibility requirements. Those outside the social-housing system can then be left dependent on the private rental market.
Cllr Tony Ward said people regularly approach councillors about affordable housing but find that suitable options are unavailable.
Independent Ireland councillor Nigel Dineen similarly argued that many working households cannot afford either a home purchase or current private rents.
The comments reflect a wider challenge facing housing policy: increasing housing supply does not necessarily solve affordability problems for every income group unless different forms of tenure are available.
Government already provides funding for cost-rental housing
The State does provide financial support for cost-rental delivery.
Under the Affordable Housing Fund, local authorities can receive support towards the delivery of eligible cost-rental homes. The Department of Housing states that support of up to €150,000 per unit is available under the relevant funding stream, subject to the applicable conditions.
Cost-rental homes can also be delivered through different programmes and providers, meaning there is no single funding arrangement covering every project.
The Government has been increasing investment in affordable and cost-rental housing as part of its wider housing programme.
Budget 2026 allocated €1.2 billion for affordable purchase and cost-rental housing, with the Government targeting the delivery of thousands of homes through these programmes.
That means the Roscommon councillors’ proposal is not a call for the Government to introduce State support for cost rental for the first time. Rather, they are seeking a funding model that would place less financial pressure on local authorities and make direct delivery more attractive.
The bigger question is who should carry the financial risk
The Roscommon debate raises a question that extends beyond the county.
If local authorities are expected to help increase the supply of cost-rental housing, they need sufficient financial certainty to take projects forward.
At the same time, the State has to decide how much of the development and long-term financial risk should sit with central Government, local authorities, Approved Housing Bodies and other delivery partners.
The council’s Director of Services effectively highlighted that tension when he described direct delivery as risky under the current model.
For councillors, the argument is that households who earn too much for social housing should not be left with private rents as their only realistic option.
For the Government, the challenge is to expand cost rental without creating a funding structure that leaves local authorities carrying a level of financial risk they cannot reasonably sustain.
The motion in Roscommon adds to the wider debate over how Ireland can increase the supply of genuinely affordable rental homes and make cost rental a more significant part of the housing system.
