Mr. John O'Connor:

It will be critical to deliver cost rental on scale for the reasons given by the Deputy in respect of providing affordable housing long term for people and helping to moderate and bring down rents in the market overall. It is critically important. On the delivery numbers, a few thousand units per year would be needed. A very significant stock of housing needs to be built up. One thing that is really important in respect of cost rental is seeing it as a long-term measure. When it has been successful in other countries, it has taken decades for that stock of affordable rental and cost rental housing to be built up. It is critical. When it is built up on scale, the rents can be reduced significantly over time, so it is most important.

Another important point is that in most countries, cost rental is seen as being very similar to home ownership. It is a home that is affordable. I will tell the committee a secret that is not often understood. In Vienna, for example, people have the right to buy. Everyone in cost rental housing can actually buy their home, but they choose not to, because it is affordable, and it is seen as a home. In respect of any organisation providing cost rental homes, whether they are approved housing bodies, local authorities or the Land Development Agency, the rent must be based on the cost of provision, so that any surpluses or limited profits that are made are actually used to keep down the rents. We have been working very closely with the Department, and one thing that is most important is to keep the rents down and to make cost rental seem like a long-term home for households. It must be seen that way.