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ARTICLE · 18 SEPTEMBER 2023

Secure Tenancy Affordable Rental (STAR) Scheme – How Does It Work And Will It Be A Success?

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The STAR scheme has been brought forward by the Government to assist the delivery of new rental stock that will be earmarked for those in the private rental sector who are struggling to afford market rents.

IrelandReal Estate and Construction
Evin McCarthy
Evin McCarthy
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Background

The STAR scheme has been brought forward by the Government to assist the delivery of new rental stock that will be earmarked for those in the private rental sector who are struggling to afford market rents.

It does this by addressing viability issues faced by developers (rising construction costs, softening of yields and increased finance cost) through an equity investment on the condition that the residential units will be designated as Cost Rental Units within the framework of the Affordable Housing Act 2021 (the “AHA”).

What are the Requirements?

In order to qualify for the equity investment, developers must commit to the following:

  • To dedicate the proposed units as Cost Rental Units available for Eligible Tenants under the regime set out in Part 3 of the AHA for a minimum period of 50 years.

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