Soaring expenses confront elderly tenants with meager pensions, as the Government remains silent on the matter
In Ireland, an increasing number of older individuals are finding themselves struggling to afford housing, with rent costs eating up a significant portion of their disposable income. According to recent data, renters over 65 years old were likely spending more than 35 per cent of their disposable income on rent in 2021. This trend is expected to have grown since then, given the escalating rent inflation compared to increases in the State pension.
One potential solution for older renters in Ireland to pay their rent after retirement when their income decreases significantly is the Housing Assistance Payment (HAP) scheme. This government-funded programme supplements rental payments by having local housing authorities pay rent to landlords directly, subject to local rent limits. The HAP scheme is particularly relevant as older renters face vulnerabilities due to rising housing costs combined with limited pension incomes.
It's essential to note that HAP rent limits vary by local authority, with caps set for different household types and some flexibility available on a case-by-case basis if the tenant has several children or cannot find suitable accommodation within limits. Older renters may need to engage with their local authority early to explore eligibility and apply for HAP, as it is considered a primary state subsidy for rent affordability.
However, the ongoing housing crisis in Ireland is not specifically addressed by the government in relation to older persons. The Programme for Government does not include a specific plan for housing and older persons, aside from supporting people to live in their own homes. A lack of security of tenure is a significant concern for older renters, with more than half having long-term health issues.
In a bid to alleviate the housing crisis, taxation has been suggested as a method to encourage owners of larger properties with few full-time occupants to move to smaller accommodation. If home ownership continues to fall, the poverty rate among over-65s will more than double from 14 to 31 per cent.
While the HAP scheme offers a viable solution for many older renters, it's important to consider alternative housing options as well. For instance, Cohousing Ireland is starting to offer housing options for over 55s, but they require the cooperation of banks.
In conclusion, the Housing Assistance Payment (HAP) scheme is the main government-supported solution for older renters with reduced retirement income to help cover rent in Ireland. Retirees should explore HAP eligibility and local authority supports to maintain housing affordability post-retirement. However, it's crucial for the government to address the ongoing housing crisis in relation to older persons and consider implementing policies that ensure security of tenure and affordable housing for this vulnerable demographic.
Sources:
[1] Housing Assistance Payment (HAP) - Citizens Information (citizensinformation.ie) [2] Older people and housing - Age Action (ageaction.ie) [3] Retirement Housing: A Review of International Best Practice (housingagency.gov.ie) [4] Retirement Housing in Ireland: An Examination of Current Trends and Future Directions (tudublin.ie) [5] Retirement Housing in Ireland: An Examination of Current Trends and Future Directions (researchrepository.tudublin.ie)
Personal-finance concerns, particularly those related to housing, are increasingly impacting older individuals in Ireland as rent costs consume a large portion of disposable income for renters aged 65 and over. To help mitigate this issue, the Housing Assistance Payment (HAP) scheme, a government-funded program, offers support by supplementing rental payments for eligible older renters and is a primary state subsidy for rent affordability. It's important for retirees to consider their eligibility and engage with their local authority to take advantage of this solution to maintain housing affordability post-retirement. However, addressing the ongoing housing crisis in relation to older persons and implementing policies that ensure security of tenure and affordable housing for this vulnerable demographic requires further attention from the government.
