Rising cost of borrowing impacts cost-rental homes
At the beginning of May 2022, the Housing Finance Agency (HFA) said its lending rates for Affordable Housing Bodies (AHBs), which develop cost-rental properties, were increasing to 2.5% for a 30-year fixed loan. A Cabinet sub-committee on housing was told that the cost-rental model, which aims to provide tenancies for €1,200 a month on average, faces “significant viability challenges” as a result of an increase in lending rates. The memo provided…