STAR - Secure Tenancy Affordable Rental Investment Scheme

The Secure Tenancy Affordable Rental investment scheme (STAR) is intended to bring forward Cost Rental dwellings with the aim of assisting eligible households who are experiencing acute affordability pressures in the private rental sector, particularly in urban centres where prevailing rents are especially high.Red brick buildings in foreground

Dwellings made available under the STAR Scheme must be designated as Cost Rental dwellings under Cost Rental legislation as set out in Part 3 of the Affordable Housing Act 2021 (AHA 2021). These dwellings will be more affordable to the tenant than current market rents, being at least 25% below market rents in a given area.

To address challenges in the housing sector, hit by the combined effects of construction inflation, increased financing costs, and interest rate induced softening of yields, and given the high level of extant un-activated planning permissions, the Government is making this scheme available to market operators who will be required to make available residential units for Cost Rental tenure.

Tenants for dwellings provided under this Scheme may only be selected per the eligibility parameters for Cost Rental homes set out in Part 3 of the AHA 2021 (as amended) and associated Cost Rental Letting and Eligibility Regulations set out under S.I. 755/2021 (as amended) and in accordance with any guidance set out by the Minister in relation to Cost Rental homes.

This Scheme, together with the designation under AHA 2021 & the Cost Rental Investment and Equity Participation Agreement, will operate to confer a public service obligation on successful proposers in conformance with Decision 2012/21/EU[1].

The Scheme will be managed by the Housing Agency on behalf of the Department of Housing, Local Government and Heritage (DHLGH) and will be operated on an evidence based, open book basis, to ensure that the investment provided by the Government feeds through in reduced cost rents, in accordance with the requirements set out in the AHA 2021.

The Scheme shall be time bound and will operate from 1 August 2023 until 31 December 2027.

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The STAR Scheme document and Expression of Interest document are available for download below.

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[1] COMMISSION DECISION of 20 December 2011 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest (notified under document C(2011) 9380) (2012/21/EU)