Starter Homes for Renters

The Starter Homes Programme also supports the growth of cost rental homes, as recommended by the Housing Commission and the Programme for Government.

Cost rental is a new type of rental option introduced in Ireland in 2021. It was a major reform of the rental system, offering:

• Secure, long-term accommodation
• For people who earn too much for social housing but struggle with high private rents
• Rents set at least 25% below market rates

Government funding makes cost rental homes affordable through:

• Cost Rental Equity Loan (CREL)
• Secure Tenancy Affordable Rental (STAR) Investment Scheme
• Affordable Housing Fund (AHF)

These supports ensure lower rents and help deliver cost rental homes at scale.

• From Budget 2026, cost rental homes will be exempt from corporation tax, making projects more viable and ensuring the 25% discount is maintained.
• Applies to all new cost rental homes designated on or after 8 October 2025.
• Delivery streams will be reviewed, with plans to create a simplified, single funding model for cost rental across local authorities, AHBs, private developers, and the LDA.
• Local authorities will get support to develop more cost rental homes without borrowing limits being a barrier.

The Starter Homes for Rent programme will:

• Expand cost rental as a secure, affordable option
• Help moderate the wider rental market by putting downward pressure on rents
• Provide more choice for households who need affordable, long-term rental homes