8 hours ago
Plans for Galway local authority rent increases criticised
Galway City Councillors have roundly criticised plans to increase rents for over 2,500 local authority tenants.
The proposals arise from a 'Differential Rent Review', which aims to generate an additional €1 million in revenue per annum.
The proposals would entail a 3% increase in the proportion of assessable income, to be paid in rent, by those in social housing - going from 17% to 20%.
In real terms, this amounts to a weekly rent rise in the region of 17.6%.
The measures also include plans to abolish a €5 discount on rents for pensioners, those with children or people with a disability.
The local authority's meeting heard the move was an executive function, as opposed to a decision that would be made by elected representatives.
Effectively, this means councillors have no say on whether the decision will proceed.
The meeting heard that €2.8 million is outstanding in rent arrears at present.
Maintenance costs have doubled since 2019, and repair costs have surged for re-lets due in part to energy retrofitting obligations.
The council's Chief Executive Leonard Cleary said the plan was difficult but necessary to address a significant gap in funding for housing.
He said the revenue generated would go towards the maintenance of properties owned by the council.
The increase will also apply to tenants in accommodation provided by approved housing bodies.
Labour Councillor Niall McNelis described the proposed increase as "the third nail in the cross" for local authority tenants across the city.
He said a number of people on Housing Assistance Payments were already making under-the-counter payments to secure their tenancies.
He added that "the most vulnerable are the ones that are going to be hammered here".
Social Democrats Councillor Eibhlín Seoighthe said she was taken aback by the proposal.
She described the plan as "absolutely appalling", adding there was no cognizance of the societal impact it would have.
She added it was "a huge burden to bear, which should be measured more clearly".
Independent Councillor Mike Cubbard said some of the most vulnerable people in society were tenants of the local authority and that they needed to be protected.
He said the proposal to remove a €5 discount for those eligible was the worst decision he has seen since being elected to the local authority in 2014.
Labour's John McDonagh said the plan was like something from a Charles Dickens novel.
Sinn Féin Councillor Aisling Burke asked the executive not to proceed with the move.
She said people were already experiencing significant financial difficulties and that the increase in rents was unconscionable.
Citing one of four case studies presented to councillors in which a tenant's rent would go from €51 to €71 per week, she said the scale of that increase was very difficult to comprehend.
"You just cannot do it," she added.
Fine Gael's Shane Forde said there had been years of under-investment in Co Galway, adding the council was now experiencing the full force of this.
He pointed out that in recent months, councillors had approved increases to the Local Property Tax and commercial rates.
He said he was sickened that elected representatives in Dáil Éireann "never wear the Galway jersey" but were happy to be on the airwaves discussing issues of national and international import.
Fianna Fail's Michael Crowe said the examples presented to elected representatives appeared to show that those who were working would be most heavily penalised by the measures.
No date has been given for the increase to take effect, but it will be in place by the end of this year or early in 2026.
The Director of Services for Housing defended the proposals as "timely, proportionate, reasonable and needed".
Elizabeth Fanning said rents had not increased since 2019, adding that a large proportion of those impacted would be able to afford the rise.
She gave a commitment that the council would "100% work" to support vulnerable renters.
She also pointed out that even after the increases were processed, tenants of local authority housing in the city would still be paying around seven times less in rent than those in private rental accommodation.
A motion calling on the executive to abandon the 3% rent increase and instead proceed with a 1.5 % increase in January 2026, a similar hike in January 2028 as well as maintaining the €5 discount, was approved by all councillors.
However, the motion is not binding on the decision made by the Council Executive.
At the conclusion of more than an hour of discussions, the Council Chief Executive said he had noted the input of members and would reflect on their motions and feedback before making a final decision on the matter.
