Oireachtas Joint and Select Committees

Tuesday, 9 March 2021

Joint Oireachtas Committee on Housing, Planning and Local Government

General Scheme of the Affordable Housing Bill 2020 (Resumed): Land Development Agency

Mr. John Coleman:

I promise I was not putting in any interference to avoid Deputy Higgins's questions. I think I got most of them. As to when we will be able to give a flavour of the breakdown, I anticipate that following the enactment of the Bill, once we have clarity on its direction or are fairly sure where it is going, we will have those discussions with the Department to understand what the appropriate tenure mix is. We will be focused on how to maximise affordability. That is what we are going to do and those are the discussions we will be having with the Department. I do not know when the Land Development Agency Bill will be enacted but we should be able to give a clear picture very shortly after that.

It is important to note that some of the sites to which we have access are longer term in nature. Sometimes markets change and places become more expensive. Unfortunately the trajectory at the moment has been moving towards being more expensive. For instance, while an area might not be that expensive, relatively speaking, for rent today, by the time houses are completed in five years it quite possibly will be. In Dublin after the financial crisis, rents were what we would now call quite affordable. Ten years later, I do not think anyone would call them affordable. We will be thinking about those things and we will be having those discussions. I imagine we will have further clarity very shortly after the enactment of the Bill.

As regards the tensions around Shanganagh and some of the issues that have arisen there, the reality is that we have gotten a positive outcome. There will be 100% social and affordable housing and quite a large proportion of cost rental housing, which we like. That suited the scheme because it is a high-density one. All but 51 of the homes are apartments and because of costs apartments are more expensive to deliver. They tend to lend themselves better to and tend to be located in higher rent pressure areas. That is why cost rental is often a good solution for apartments. I understand that some councillors would have preferred more affordable purchase homes and we tried to strike a balance by including some further affordable purchase homes to take the number up to 91. Everyone will have different views. For every councillor who wanted more affordable purchase homes there was another who was very happy with high levels of cost rental units. It is a tricky balance to strike.

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