Latest news with #ARP
The Journal
17 hours ago
- Business
- The Journal
Clampdown on payments for hosting Ukrainians as new rule to limit some RTB registered properties
GOVERNMENT HAS MOVED to clampdown on the state payment for housing Ukrainians by agreeing today to limit the eligibility of some properties. Concerns have been raised about the scheme's impact on the rental market and it was agreed at the Cabinet Committee on Migration in July to limit eligibility in some specific cases. Justice Ministers Jim O'Callaghan and Housing Minister James Browne got approval today for proposals to limit the eligibility of some properties for the tax-free €600 a month payment. The changes mean any property registered with the Residential Tenancies Board at any time since 1 January 2022 will be ineligible to make a new application for the Accommodation Recognition Payment (ARP). Advertisement Existing claimants are unaffected. It is expected that a memo will got to Cabinet in the autumn seeking the government's approval of the publication of the Housing (Miscellaneous Provisions) Bill, which will contain the legal changes for this amendment. In March 2025, the payment was extended until 31 March 2026, but the payment was cut from €800 to €600 per month. Rise in households in receipt of payments As reported by The Journal at the weekend , there has been a considerable rise in the number of households in receipt of the state payment for housing Ukrainians, as the government has ended the contracts for over 100 centres that were housing them so far this year. Since January of this year an additional 3,125 payments have been made to property owners, representing a 16% rise in payments made under the ARP scheme since the start of the year. Sinn Féin has called for a full review of the ARP scheme, and said that it is giving landlords 'tax free' payments and reducing the rental stock in certain counties. Related Reads 'They have nowhere else to go': Payments for hosting Ukrainians on the rise as centres close Cabinet green-lights cutting of Ukrainian accommodation payment to €600 per month from June The party has also said that the government has ignored calls for the scheme to be 'means-tested'. At the same time, however, 109 accommodation centres that were hosting Ukrainians have returned to their original use, according to figures provided by the Department of Justice. Agencies involved in arranging local accommodation for Ukrainians told The Journal that hundreds of Ukrainians have sought out hosting arrangements locally due to these closures, as in many cases the alternative accommodation they are offered is far away, and they have become embedded in the local communities they're in. The Department of Justice has said that 16,900 hosts are currently accommodating almost 39,600 people under the scheme in over 21,800 properties. With reporting by Eimer McAuley Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Examiner
2 days ago
- Business
- Irish Examiner
Rent-a-Room explainer: How to earn up to €14k tax-free by opening your home to a lodger
The Rent-a-Room scheme (RAR), launched way back in 2001 and now approved by the Government until 2027, has been described as everything from a band-aid on the housing crisis to a vital lifesaver for desperate house-hunters, pensioners, separated individuals and struggling students. For anyone with a spare room or an independent living space structurally attached to their home, it's a very attractive prospect if the environment is right, you are temperamentally suited to the arrangement and open to a lifestyle change. Renting out a room or suitable accommodation to a private individual using RAR can deliver a tax credit of up to €14,000 per year (not including for PRSI and Universal Social Charges). Broken down into a few monthly lets or used year long, this figure is well in excess of the price of all student housing over the 38 to 40 weeks of a typical academic year in college. RAR is very useful for professionals working away from home for a longer contract, who want to cut the weekly commute. For tax purposes, Revenue demands that the home you're sharing must be your primary residence, and the renter must occupy the room or unit within the house for 28 consecutive days. Occasional accommodation falls under short-term lets for tax purposes, but four- to five-day occupancy for properly set, shorter or longer periods is acceptable under RAR once a proper licence is in place. If you're interested in pledging a place in your home for a refugee, the Accommodation Recognition Payment (ARP) of €600 per month for hosting a refugee recognised under the EU Temporary Protection Directive, can be combined with RAR if you meet the criteria for both schemes. ARP is only set to continue until March 2026. Using RAR with a licence agreement as the tenant, you can apply for a valuable rent tax credit from Revenue (including renting RAR accommodation for a child on an approved educational course). As a homeowner or leaseholder, there are lesser-known details to the scheme that might make it interesting for anyone from a retiree to a young family to carefully consider as part of their financial planning. For instance, although you cannot rent out your space under the scheme to your spouse, civil partner or partner, son or daughter, extended family members are not totally precluded. You could use the scheme for a grandchild, nephew, niece or cousin. Martina Hennessy, managing director at Doddl: 'Mortgage lenders do not take this potential income into account as it is non-taxable and is not deemed to be earned income for mortgage assessment.' Since December 2023, the scheme has also included the opportunity for local authority tenants to rent out a room to a student or to someone getting a housing assistance payment. Once approved by your local authority, the tax credit of €14,000 will be honoured by Revenue, and this will not affect most means-tested social welfare payments. This €14,000 ceiling set by Revenue (before tax kicks in) includes charges for laundry, utilities, and foodstuffs. As a local authority tenant renting to a student, Citizens Information set out the parameters here (both must make an application for every academic year), and the authority will review the rent you are paying as a local authority tenant: As a landlord You must not have any rent arrears, or if there are arrears, you must have a payment plan in place You must be complying with the terms and conditions of your tenancy agreement with the local authority Your local authority home must be in good condition and be well-maintained Your home must not become overcrowded if you rent a room to a student As a student, you must Be a registered full-time student at a higher education institution. You must provide proof of this Be over 18 Not be closely related to the local authority tenant you are renting from Not have engaged in anti-social behaviour Be tax-compliant Tenants and homeowners It's not well understood that RAR is open to tenants as well as private homeowners. If your landlord is agreeable, you can sublet under the scheme, following the same guidelines as if you owned the house or apartment. Obviously, don't even approach this sort of tenancy before getting full permission in writing from the owner or property management team. Could an RAR-operating home help to improve a mortgage? Martina Hennessy, founder and CEO of digital mortgage brokers says: 'Mortgage lenders do not take this potential income into account as it is non-taxable and is not deemed to be earned income for mortgage assessment. While you may have the ability to rent a room, a mortgage lender will not allow this income to be included to increase mortgage lending under a home loan mortgage application. Rental income can only be taken into the mortgage assessment for a buy-to-let property. If you have a self-contained unit that was originally part of the property, there are a couple of extra things to know that could protect your position, but which may give someone looking for accommodation pause. First of all, the same rights and responsibilities will apply as if you were letting to someone under a normal lease (Residential Tenancies Act 2004), and the standards for the property must meet a set baseline. You must also register the rental with the Residential Tenancies Board (RTB). On the flip side, those signing up to the RAR mechanism can opt out of a typical 'right-to-stay' requirement covering a designated period of time. As a landlord, you must inform your potential renter in writing that you're opting out of this clause so that they are fully aware of what they are signing up for. On the other hand, renting out a spare room in the house itself, as a tenant, there's no minimum standard to be met, and no protection under the Residential Tenancies Act. Many householders within the vicinity of a place of further education or, for instance, a hospital, find the licence-based renting agreement perfect for their situation, as renting out just a room, there's more flexibility and no binding lease. This can lead to a happy win-win situation that continues for years, or weekly misery for a vulnerable tenant finally pushed out under 'reasonable notice.' Students renting under the RAR scheme can be pressured to absent themselves over weekends, even where this is not actually designated in the licence (it can be). Self-contained but not structurally separated areas of your home including basements, converted attics and garages can be used for the Rent a Room scheme but there are added conditions. File picture Opening up your home so intimately to a stranger is not something to be taken lightly. The scheme focuses on spare bedrooms and self-contained annexes like converted garages and attics that are fully part of the house. Detached buildings currently do not qualify for the Rent-a-Room scheme. As a landlord and tenant, you're a bit more present in each other's lives. In some cases, the arrangement will include sharing living spaces, the kitchen and even the bathroom, depending on the layout of your property — a classic 'digs' arrangement. Some empty-nesters taking on younger renters will enjoy the new refreshing energy brought back to a larger, rattling home where the chicks have flown. That said, life is about compromise, and you cannot expect a grown adult to tiptoe around your house in monastic quiet, even five days a week. It's hard to preserve the typical stipulation of 'undisturbed occupancy' at every turn. Older adult tenants may prove to be just as challenging as a first-year engineering student. As a landlord and renter, ensure you work out the house rules in a proper licence agreement that you will both sign. This will include (at least) what length of reasonable notice there is if the arrangement does not work out, expectations regarding utility bill payments, noise, deposit arrangements, house rules covering things like overnight guests and cleaning, and a set rental payment schedule. There's a good guide here. When renting any room, choose your home and prospective share carefully. Pushed up just that bit closer to the property owner or lease holder, things could prove extremely awkward and stressful. There's an excellent page outlining your rights when sharing a home online at Read More Medical card assessment to disregard €14k-rent-a room scheme income
Irish Independent
4 days ago
- Politics
- Irish Independent
More than 400 households in Wicklow reimbursed for housing Ukrainian refugees
The ARP is a tax-free monthly financial contribution of €600 available to households who provide accommodation to a person or people who arrived in Ireland under the EU Temporary Protection Directive since March 2022. Figures released to Sinn Féin's spokesperson on migration, Matt Carthy TD, reveal that the number of properties nationwide in receipt of ARP rose from 4,245 in January 2023 to 21,803 by mid-July of this year, a rise of over 17,500. In Wicklow, the number has jumped from 154 to 463 over the same period. Deputy John Brady has raised concern at what he calls 'a significant and worrying increase in the number of private properties being brought into the ARP scheme. 'In Wicklow alone, we have seen ARP properties triple in the space of just 18 months. This is happening while thousands of families in the county are being priced out of the private rental market. This is particularly concerning when only 58 properties are currently available to rent in the county'. The Wicklow TD said that the government had failed to acknowledge the impact of the scheme on rental supply. 'We are in the middle of a housing emergency', he said. 'Instead of protecting tenants or investing in long-term housing solutions, the government has created a system where landlords can cash in on the ARP, avoid the rules of the private rental sector, and bypass tenant many protections'. The figures show that 21,803 properties are being paid under the scheme, provided by just 16,900 owners. Deputy Brady claimed landlords are taking advantage of a state-funded scheme with 'little oversight or long-term benefit to the housing system'. 'This is a direct consequence of the government's failure to plan and their refusal to engage in proper housing reform. Wicklow families are being left behind while landlords are benefitting' he added. Funded by the Local Democracy Reporting Scheme
The Journal
4 days ago
- Business
- The Journal
'They have nowhere else to go': Payments for hosting Ukrainians on the rise as centres close
THERE HAS BEEN a considerable rise in the number of households in receipt of the state payment for housing Ukrainians, as the Government has ended the contracts for over 100 centres that were housing them so far this year. Since January of this year an additional 3,125 payments have been made to property owners, representing a 16% rise in payments made under the Accommodation Recognition Payment (ARP) scheme since the start of the year. Sinn Féin has called for a full review of the ARP scheme, and said that it is giving landlords 'tax free' payments and reducing the rental stock in certain counties. The party has also said that the Government has ignored calls for the scheme to be 'means-tested'. At the same time, however, 109 accommodation centres that were hosting Ukrainians have returned to their original use, according to figures provided by the Department of Justice. Agencies involved in arranging local accommodation for Ukrainians have told The Journal that hundreds of Ukrainians have sought out hosting arrangments locally due to these closures, as in many cases the alternative accommodation they are offered is far away, and they have become embedded in the local communities they're in. The Department of Justice has said that 16,900 hosts are currently accommodating almost 39,600 people under the scheme in over 21,800 properties. That means that there are currently over double the amount of payment recipients that there were in January of 2024, when payments were being made in respect of 10,208 properties. A spokesperson for the Red Cross, however, has said that their register of pledged accommodation has seen a steady decline in numbers. Angie Gough, the CEO and founder of Helping Irish Hosts, a network that has been informing Ukrainians and hosts of their rights and obligations under the ARP scheme, told The Journal that that's because there has been a steep rise in the number of Ukrainians that are living with 'solo hosts' who have not gone through official channels. 'There is no other option for people leaving other state accommodation, apart from the private rental market. 'Increasingly people are seeking out 'solo host' arrangements on the internet, and that means that more people are going into unregulated arrangements, where you see a prevalence of Ukrainians being charged 'top up' payments and even rent,' Gough said. Gough said that a full review of the scheme would be 'welcome' with a view to introducing 'stronger safeguarding'. Helping Irish Hosts members at an event in Dublin that marked the anniversary of the invasion of Ukraine. 'This scheme wasn't created to bypass tenancy obligations. Behind every figure is a person who needed shelter, and someone who offered it. Let's not allow that core human story to be lost in political point-scoring,' she said. Advertisement Since the scheme kicked off in July 2022, over €339m has been paid to some 26,100 recipients in respect of hosting over 56,700 temporary protection beneficiaries. Sinn Féin's Justice Spokesperson Matt Carthy, who requested the figures via a parliamentary question, has called for a full review of the ARP scheme. 'The number of properties in the scheme in some counties is astonishing – for example there are 2,070 properties receiving payments under the scheme in Donegal, while on there are only 20 properties for rent in the county this morning,' he said. Carthy said landlords 'are using this scheme because it is financially beneficial and to avoid tenancy obligations.' He said that the scheme gives 'tax free' payments to landlords, who can also get a 'top up payment' from the Ukrainian tenants of the properties. Carthy slammed the scheme as 'deeply unfair' and said that it gives access to 'non-means tested housing support' to one group of people 'which is available to no others'. He said that the Government has ignored calls for the scheme to be means-tested. Social Democrats TD and Spokesperson on Justice Gary Gannon told The Journal that a survey published by the Red Cross found that of the homes where Ukrainians have been welcomed most have never been RTB registered as rentals. 'This is a system that has worked during the crisis and for families taking people in, it's not a huge amount of money for having somebody living with you when you consider the increase to bills and all of the other aspects that go into it. 'For all these people to be placed into the IPAS system would put a huge financial strain on the system,' Gannon further said. The Dublin Central TD added that he 'absolutely' thinks the ARP scheme should be extended beyond March 2026. 'In the absence of that, we still have a huge number of people who came who are women and children, with childcare needs, and a lot of older people, who haven't been able to access employment. I don't think there's this story of Ukrainians living here 'rent free', lots of people are renting, but there are lots of other variables for those who can't,' Gannon said. Justice Minister Jim O'Callaghan replied to Carthy and said that there is ongoing engagement between his department and the Department of Housing in respect of the scheme. O'Callaghan added that the scheme has been extended until March of this year, and that the monthly contribution rate was reduced to €600 as of 1 June. This year the Department of Justice set out a plan for closing Ukrainian accommodation centres it is funding across the country, and for 1,800 beds in the student accommodation centre to be returned to their primary use for the upcoming academic year. In areas where this has already happened , Ukrainians have sought out accommodation in their locality, as many who work in the areas they have spent two years in some cases, and others have children attending local schools. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Independent
7 days ago
- Business
- Irish Independent
Sinn Féin calls for review of ARP as figures show rise in properties availing of scheme
Today at 11:55 Sinn Féin are calling for a full review of the Ukrainian Accommodation Recognition Payment (ARP) after figures show a 17pc increase in the number of properties receiving payment under the scheme this year. The ARP is a tax free payment that property owners receive for housing those fleeing the war in the Ukraine. Register for free to read this story Register and create a profile to get access to our free stories. You'll also unlock more free stories each week. Already registered? Log In
