Housing corporations are planning to increase the rent on social housing by an average of 3.1% for sitting tenants this year, according to the social housing monitor WSW.

The government has sanctioned an average rise of 4.2% a year up to 2018, which will take the average price of a rent-controlled property from €466 a month to €572, news agency ANP reports.

However, the WSW says it has doubts about the impact of the increase on tenants, given a large proportion live below the poverty line.

Housing corporations are increasing rents in order to help compensate for an extra tax the government has imposed on social housing providers. They are also building fewer new homes and cutting costs.

‘At first glance, this measure would appear to restore the financial position of the sector,’ the WSW said. ‘At the same time, social housing is becoming less affordable and the housing supply is getting older.’