Mr. Noel Cahill:

There are various ways permanent affordability can be achieved. Social housing is permanently affordable at least up to the point of tenant purchase. Some forms of social housing, for example housing associations, do not do tenant purchase so that is permanently affordable. The idea we had on cost rental accommodation is that rents were pitched to suit middle income households. That should also be permanently affordable. While owner occupation is not a common model elsewhere, permanent affordability would mean having a mechanism in place to regulate the resale price for houses developed on that basis. One would regulate the resale price and the extent of appreciation so that it is affordable for the next purchaser as well. Leasing the land is a mechanism that would make this possible. If the public body continued to own the lease, it could regulate the retail price. In Singapore, the state plays a substantial role in supplying houses to the housing system. It retains the land and has leases, as was said. Closer to home, Amsterdam city council going way back adopted a policy of leasing the land rather than selling it. Not all the housing was affordable but it did reduce speculation. The city owns something like 80% of the land but it has moved now towards selling land. It is a useful mechanism.