Housing Minister Darragh O’Brien is to allow international pension funds and other private investors to build ‘cost rental’ homes for profit. The Minister said investors’ returns would be capped at a “moderate” level when he publishes legislation on cost rental schemes shortly. But his plan runs contrary to popular understanding of the cost rental model which is that the rents cover the costs of construction loans and long-term property maintenance, not profit. The country’s first 50 cost rental homes will be completed shortly in a scheme developed by two non-profit housing bodies with State support. Mr O’Brien said the aim was to have large numbers of cost rental homes so that they would help keep private rents in check.

Source: Irish Independent April 29, 2021 18:19 UTC