A NEW rent scheme for social housing tenancies is to be introduced by Galway City Council.
2,700 tenancies in a mixture of tenures and property types will be affected by the changes which aim to support enhanced service delivery, maintenance, retrofits and tenancy support.
Under the new rent scheme, weekly rent will be based on household income, with a lower rate applying for Old Age Pensioners. No changes will be introduced for existing tenants until January 2026, with the local authority commencing an information campaign to explain the changes to tenants in the coming weeks. A hardship clause is included in the rent scheme – further information on this will be made available to tenants.
In recent years, the cost of maintaining Galway City Council properties has soared from €6,000,000 per annum in 2019, to €16,000,000 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. 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 the Council said is not practical or sustainable.
The cost of repairs, refurbishment and retrofit when re-letting a housing unit has gone from €7,649 in 2019 to over €41,000 in 2024.
This 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.
Galway City Council is the main provider of social housing support in Galway City. The Council is responsible for the management of over 2,700 tenancies. The new rent scheme will apply to households living in Galway City Council properties, as well as HAP tenants, RAS tenants and households living in Approved Housing Bodies in Galway City.
Social housing rent is calculated based on a percentage of income.
In the new rent scheme, weekly rent will be calculated as 20% of assessable income, with the exception of Old Age Pensioners, where weekly rent will be calculated at 17% of weekly income. Currently, rent is calculated at 17% of assessable income for all tenants and further discounts are applied in certain circumstances. No discounts will apply in the new rent scheme. However, details of the criteria for a hardship clause will be made available to tenants.
For new tenancies, or tenants seeking ‘reassessment’, the new rent scheme will come into effect from next month (October 2025). From January 2026, the new rent scheme will apply to all tenancies.
Leonard Cleary, Chief Executive, Galway City Council commented, “Galway City 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. The revised scheme seeks to accommodate these differences while addressing the rising costs of housing maintenance and repairs. The Council thanks Elected Members for their constructive input and reaffirms its commitment to supporting tenants through this transition”.
Galway City Council 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. For now, no action is required from tenants and the change to weekly rent in January will be based on the current details on file for each household. Further information on the scheme is available through the Housing team in Galway City Council – contact 091 536 400 or Housing.Department@GalwayCity.ie
