Changes in Fair Deal Scheme to Have a Positive Impact on the Rental Market

 

Who isn’t aware of the Nursing Home Support Scheme in Ireland! Also renowned as the Fair Deal Scheme, it offers financial support to people finding it challenging to fund nursing home accommodation. So, a beneficiary under the scheme has to pay only a portion of his income and return on assets to enjoy nursing home care. The figures are 80% and 7.5%, respectively.

A prime change is predicted to be introduced after the Dáil summer recess under Stephen Donnelly and Mary Butler - the Ministers of Health and State, respectively. The great news is that the Cabinet has expressed approval in favour of the memorandum. Curious about its outcome? Read on to find out.

What Change in Nursing Home Support Scheme is Likely to Hit Soon?

Presently, nursing home residents are paying a hefty 80% of rental income to the State. This has been discouraging them from renting out their property for quite some time. As a consequence, a long-running housing crisis has developed in the market. The Irish Government is struggling to deal with it. The pressure has intensified over the last few months as more refugees are arriving in the country from war-torn Ukraine.

In aid to resolving this accommodation issue, the Government has plans to reduce this 80pc contribution of rental income to 40pc. The State authorities believe this move will encourage nursing home residents to rent out their homes and make more living space for people looking out for accommodation. In other words, the rental market will revive from the amendment.

What is the Scenario at Present, and How Can the Amendment Bring About a Change?  

At present, 8000 homes are owned by Fair Deal Scheme beneficiaries. In future, 2000 homes can be freed and put up for rent. The remaining have either relatives and spouses of nursing home residents living there or are not suitable for renting out.

Nat O’Connor, the Age Action policy specialist, believes that such an amendment to the Fair Deal Scheme can result in elder abuse. Some relatives may prematurely admit the aged family members to nursing homes to take advantage of the fresh rules on rental income. Therefore, he is looking forward to safeguards in place that will solely engage the owner to decide on renting out his property before leaving for nursing home care.

Final Thoughts:

The rental market is said to benefit a lot from the State’s decision of cutting down rental income contribution to 40pc. Refugees moving from Ukraine to Ireland can quickly get accommodation, and the Government can easily strike a balance between the high demand for residence and the supply. A lot depends on the approval of the Cabinet. So, let’s wait with bated breath until the Dáil summer recess. Till then, seek Fair Deal solutions from the State and if you ever find anything going over your head, hire advisory services. Fair Deal Advice is a good place to look out for information and draw one-to-one consultations.