The government has revised its plans to boost the supply of affordable housing next year in order to win left-wing support in the senate, cabinet sources have told broadcaster NOS.
The four-party coalition government does not have a majority in the upper house of parliament and needed to make concessions to ensure that the changes become law.
Ministers have now agreed to limit the maximum rent rise in the non-rent controlled sector to 1% plus inflation, rather than 2.5% as mooted earlier, NOS said. They have also agreed to pump a further €450m into neighbourhood improvement schemes.
The biggest change, however, is a revision of plans to change the income limit for social housing for single people. Ministers had been planning to lower this to €35,938, which campaigners argue, would mean more single people would be ineligible for social housing and would have to find a place in the free sector.
MPs are due to debate the housing budget on Monday.