Oireachtas Joint and Select Committees

Thursday, 25 January 2018

Joint Oireachtas Committee on Housing, Planning and Local Government

Update on Rebuilding Ireland - Action Plan for Housing and Homelessness: Discussion

9:30 am

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

No. That would be a matter for Irish Water but what we would want to do with the new delivery unit, the land management office, is to make sure that those problems would not arise and that there would be consistency between a local authority's priorities for large-scale housing development and the priorities of Irish Water for its infrastructural development.

In regard to rent-to-buy, under the affordable rental scheme, we are trying to pursue a cost-rental model, not rent-to-buy model. Cost-rental is a huge percentage of some of the markets in European countries. When I think about cost-rental in some of the places in which I have lived, one of the ideas around it and where it would be of benefit is where someone did not own or buy a house over the course of his or her working life and he or she will be retiring and will be on a pension and is worried about being opened up to the vagaries of the rental market and how it might undermine his or her pension and even his or her security of tenure over the next 20 or 25 years. If the person was able to get a cost-rental rent, the rent would be fixed, based, more than likely, over the lifetime of the rent, because it would be linked to the cost of construction plus management fees and some upgrade fees. The person would not be exposed to the vagaries of the rental market.

There is huge potential here for those who do not and will not own homes and those are the types of ways that I want to bring in cost-rental. However, it will take time to bring in cost-rental and to have it as a percentage of our rental market, as we see in other cities. The pilot project that is currently being progressed with Dún Laoghaire, with the housing body there and with our Department is going to pave the way. I will be visiting the European Investment Bank shortly to talk about how we can expand the ambition we have for that at the moment.

Just for the record, I will be pushing the rent-to-buy model. It is a no-brainer. Deputy Ó Broin wanted some clarification?

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