Galway City Council (GCC) is set to increase the rent paid by tenants of social housing in a bid to cover the “soaring” cost of maintenance and retrofits of properties.
Social housing rent is calculated based on a percentage of income. Currently, the council calculates rent at 17 per cent of assessable income for all tenants while further discounts are applied in certain circumstances.
Under the new scheme, weekly rent for most tenants will be calculated at 20 per cent of assessable income. For pensioners, weekly rent will be calculated at 17 per cent of weekly income.
“No discounts will apply in the new rent scheme. However, details of the criteria for a hardship clause will be made available to tenants,” a statement from the council noted.
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No changes will be introduced for existing tenancies until January 2026. For new tenancies, or tenants seeking “reassessment”, the new rent scheme will come into effect from next month.
The changes will affect about 2,700 tenancies, including tenants in GCC properties, tenants supported by the Housing Assistance Payment or Rental Accommodation Scheme, and households living in accommodation provided by approved housing bodies in Galway city.
Outlining the rationale behind the new scheme, a spokeswoman said the cost of maintaining GCC properties has “soared from €6 million per annum in 2019 to €16 million per annum at present".
“The reason for this is due to the increase in costs largely attributed to construction inflation costs and higher standards relating to energy efficiency,” a statement noted.
“But income from housing rent has remained relatively static, with no change to the Council rent scheme since 2019. This means that currently, the rental income does not meet the cost of housing services, which is not practical or sustainable.
“The cost of repairs, refurbishment and retrofit when re-letting a housing unit has surged from €7,649 in 2019 to over €41,000 in 2024.
“The new rent scheme, the first in six years, will generate additional income to support Galway City Council tenancies, ensuring the sustainability of housing services across the city.”
Leonard Cleary, chief executive of GCC, said the council is “committed to achieving a balanced and fair rent structure that reflects household income and supports the delivery of essential housing services”.
“The council acknowledges that while some households have seen income growth, others rely solely on social welfare increases,” Mr Cleary said in a statement. “The revised scheme seeks to accommodate these differences while addressing the rising costs of housing maintenance and repairs.”
GCC said it will “undertake a review of all rent accounts, starting in mid-2026, asking all households for up-to-date information relating to income and household composition”.
