Mr. John O'Connor:

First, the Housing Agency welcomes the commitment in the programme for Government in terms of the focus on social housing and affordable housing delivery, and the broad principle of housing for all.

In terms of the Affordable Housing Bill, the provisions for affordable purchase and cost rental are most welcome. Specifically relevant to the Bill, the Housing Agency has established an affordable housing unit to assist and support the Department with the implementation of the affordable purchase and cost rental measures outlined.

In the Bill there are two major measures. One is the range of affordable home purchase measures and, second, there are the measures for cost rental homes. I will take the affordable home purchase measures first. It is very important for us all to understand that the key elements of supporting home ownership, as set out, are the shared equity arrangements. That is fundamental. This supports households to purchase a home in a fair and equitable way. It is an effective way of the State investing in affordable home purchase and that equity investment, when it is repaid, can be used to provide support to future households purchasing an affordable home. It is, essentially, a sustainable measure that will support both current and future generations, which is a very important principle. The measures, as we have seen in the Affordable Housing Bill, that amends the 2009 Act, is the local authority shared equity scheme, and delivery under this scheme can be by local authorities, approved housing bodies, the Land Development Agency and others. There is also provision for a national affordable purchase shared equity scheme using the open market.

In terms of cost rental homes, a key element of achieving affordable housing in many countries is the delivery of a cost rental sector. Over time that sector builds up so it can provide housing that is affordable for a wide range of households. Austria, Denmark and the Netherlands are some of the countries that have built up very effective cost rental sectors.

Cost rental aims to help households with moderate incomes access affordable and secure rental homes. It is a model of delivery where the provider supplies accommodation and charges rent that is sufficient to cover construction and financing costs of the housing, and the ongoing management and maintenance costs. So the costs are based on the cost of provision. That aspect is very important and over time it becomes even more affordable.

Currently, the Housing Agency is assisting the Department with the introduction of a new cost rental equity loan scheme delivered by approved housing bodies. Initially, there are 390 homes to be delivered. This is in addition to 50 cost rental homes that are to be delivered in the next number of months in Stepaside on the Enniskerry Road in Dublin. This is along with 105 social rental homes. It is a collaboration between Dún Laoghaire-Rathdown County Council, the Housing Agency, the Respond and Tuath Housing Associations, and the Housing Finance Agency.

To conclude, the overall aim has to be to make housing affordable for everyone of all incomes. We are pleased to support the committee and elaborate on any points raised.