The Government is understood to be considering a rent subsidy for middle-income families.

The initiative aims to prevent more families applying for social housing.

The payments would go to families earning up to €55,000 per year, according to a report in the Irish Times.

The scheme is being considered for inclusion in the Government’s upcoming rental strategy.

It comes as the latest rental report from Daft.ie showed rents rose by almost 12% in the year to the end of September.