Eoin Ó Broin (Dublin Mid West, Sinn Fein) | Oireachtas source

I was genuinely surprised by two comments made by the Minister in our discussion around affordability.

He should correct me if I misrepresent what he said. He seemed to indicate that he thought rent of €1,200 per month is affordable and to suggest that €310,000 as the purchase price of a house is affordable for a two-income couple on the average wage. In the most comprehensive study of affordability to date, the ESRI states that for renting, affordability would be determined by 30% of net disposable income. On a rent of €1,200, one would need a net monthly income of €4,000. Clearly, it is affordable for such people. However, we are looking for affordable housing for people who are above the threshold for social housing and, according to the Minister's rules, earning less than €50,000 for a single applicant and €75,000 for joint applicants. That rent is not affordable for the Minister's system and rules; amounts of between €700 and €900 are. Likewise, if one is purchasing a home for €310,000, there is a 10% deposit of €31,000, which leaves a loan of €279,000. Under the Central Bank's rules, a gross income of €79,000 is needed. That household is above the threshold of eligibility for affordable housing. It is also above the threshold for eligibility for the Rebuilding Ireland home loan scheme. Even if it were not, the average Rebuilding Ireland home loan across the State is €200,000 or less. Does the Minister know how many loans under the Rebuilding Ireland scheme Dublin City Council has offered since the scheme opened that are close to that price? Only 16 have been drawn down.

Here is the problem. We are trying to get the State to invest in a supply of affordable rental and purchase accommodation for households on incomes between €38,000 and €75,000. None of the stuff the Minister is promising, meagre and all as it is in the context of numbers, is going to meet their needs. Somebody will be able to afford what the Minister is offering; I am not doubting that. Some people will pay for it even though it is not actually affordable according to mainstream ESRI rules. Enniskerry Road and O'Devaney Gardens are the only developments we are seeing prices for and our big fear is that they are way off the Richter scale. What I would like to know, and what those who are desperate for affordable housing would like to hear, is what is coming down the line for the families on €38,000 to €75,000 that will be affordable to them under the existing rules and mainstream understanding of affordability. When will those units be available? For the people we all represent, nothing is becoming available now.