Thousands of vacant homes could be brought back to the rental market through updates to the Fair Deal scheme, according to the Housing Minister.

The Fair Deal scheme helps people access long-term nursing home care by splitting the costs – with the resident paying a contribution and the State paying the balance.

Applicants are expected to pay 80% of their assessable income and 7.5% of the value of any assets they own per year.

The State then pays the rest of their fees.

It means that anyone moving to a nursing home and renting out their own home has to pay 80% of their rental income to the nursing home – significantly reducing the subsidy they receive from the State.

The Housing for All plan promises to exempt rental income from the assessment and On Newstalk Breakfast this morning, Housing Minister Darragh O’Brien said the change would come into force this year.

“We reckon there are about 8,000 homes empty at the moment because of [the Fair Deal assessment],” he said.

“It is quite punitive if someone decides to rent that out so I have agreed with the Department of Health that we are going to make changes through legislation that are going to make sure it will be easier, with the permission obviously of the owner of the house, for properties to be rented out.

“Even if we get a third of those properties back, that is about 2,500 or 3,000 - I think we can do more - and that change will happen this year.”

Minister O’Brien has been trying to change the scheme since early last year; however, he met resistance at the Department of Health – with officials warning that the changes could see families pushing older people into long-term care prematurely in order to access the rental income.

He said he has now reached agreement with officials – with the changes set to come into force later this year.

The Government has already updated the scheme to ensure proceeds from the sale of a home are capped at 7.5% for a maximum of three years.