Back in April the Government announced changes to the Fair Deal scheme which could potentially see thousands of vacant properties brought back into the rental market. However, some Advocacy groups such as ALONE have raised concerns.
The Fair Deal scheme
The Fair Deal Scheme offers financial support to people who require long-term nursing home care in Ireland. It is designed to provide financial assistance regardless of financial circumstances. New legislation has been drafted aimed at encouraging people who are on the scheme to rent their homes as part of a broader effort to solve the current housing crisis.
The current Fair Deal scheme says that any nursing home resident must hand over 80% of any rental income earned from their main residence to help pay for their care. As of April this year, the Government has agreed to reduce this number to 40% allowing nursing home residents to keep 60% of any rental income. It is hoped the move will bring up to 8,000 homes back into the rental market.
Reviewed in 6 months time
Housing Minister Darragh O’Brien said ‘That should free up a lot of properties. I’m going to keep that under review for six months and we’ll review it then in November this year to see whether we need to reduce that further. It is a welcome change and it’s the most significant change that we’ve had Fair Deal since its establishment,”
While a further reduction in the tax is unlikely it’s certainly an option for the Government if this initial change doesn’t deliver the results they are hoping for.
Concerns
Advocacy groups such as ALONE, who represent elderly people, have raised concerns at the plans to change the Fair Deal scheme to try and bring vacant properties back into the rental market, with some calling it a “waste”. There have also been suggestions that older people may be pressured into renting out their homes by family members who could then pocket the rental income. While most would not do something like that to a family member, it is unfortunately a possibility.
ALONE has told the Government that the current private rental sector does not fully serve the needs of elderly people.
“Our current model of housing provision that we are relying on, the private sector rental model, will not fully serve the community nor the needs of older people. If you are renting, there are more barriers and fewer choices available.
“If we continue to rely on the model as it stands today, with greater numbers renting into older age, we will see a dramatic increase in the older people homeless numbers support needs among this age group.”
They have called on the Government to focus instead on increasing numbers of local authority, Approved Housing Body (AHB) and subsidised housing developments.
They say there will need to be long-term lease and cost rental houses being delivered on a much greater scale, and more measures to help protect our older tenants in society.
Property Management
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