Galway City Council executives approve 3pc increase in rent for local authority tenants
A recent Galway City Council briefing saw the approval of an increase in rent contributions that will affect 2,700 social housing tenancies.
Under the Differential Rent Scheme, where rent is calculated based on household income, a 3pc increase was proposed and approved by council executives. This would raise weekly rent to 20pc of a tenant’s assessable household income - up from the 17pc it has remained for the past six years.
While most councillors have expressed opposition to the increase, Fine Gael councillor Shane Forde described it as the “fairest option” to address the widening gap in housing maintenance costs. The proposal, however, falls under the council executive’s remit and is not subject to a councillor vote.
Galway City Council chief executive Leonard Cleary said the council are “committed to achieving a balanced and fair rent structure.”
"The council acknowledges that while some households have seen income growth, others rely solely on social welfare increases. The revised scheme seeks to accommodate these differences while addressing the rising costs of housing maintenance and repairs,” he added.
In 2019, maintenance costs for council housing stood at approximately €6 million. Cllr Forde said that figure is expected to rise to €25 million this year however, Galway City Council claims that maintenance costs are currently at €16 million per annum.
Cllr Forde noted that, as rents have not increased since 2019, it is “clearly not sustainable” to continue under the current model.
“If we don’t do anything we will not be in a position to maintain these properties.”
To illustrate the scale of costs, council executives provided sample estimates for home repairs:
New door: €9,000; Retrofitting a home: €44,000; Upgrading a kitchen: €7,500.
Those figures gave context to the significant price increase of repairs and refurbishments in between lets since 2019 when the recorded total figure was €7,600.
Currently, tenants must either have an active payment plan in place or be making regular rent payments for the council to undertake maintenance work.
“The reality is people cannot be penalised for not paying rent, but the local authority will not go near their home for maintenance and repairs,” Cllr Forde said.
The proposed changes would also eliminate the €5 child allowance but would not affect the lower rate applied to old-age pensioners. The hardship clause will remain in effect, ensuring that “every case will be treated individually,” with dedicated communication channels for tenants to engage directly with the council.
Meanwhile, the local property tax on these homes will continue to be covered by Galway City Council.
Cllr Forde also stressed the contrast between the council’s rent freeze over the past six years and increases applied by private landlords during the same period.
The proposal was first presented before the summer recess and returned for further discussion at this week’s briefing.
The increases will take effect in January 2026 and remain in place until the next review in 2029. New tenants will see the scheme take effect beginning October 2025.
Over the next three months, all tenants will be contacted by the council regarding this change. The council will also be launching an information campaign on the changes in the coming weeks.