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

As members of this committee know, we are in the middle of an affordable housing crisis the likes of which we have not seen for a long period of time. Average rents in Dublin, for example, are €1,700 per month for a standard two-bed. In fact, in many parts of Dublin city, in particular, rents are now at €2,000 to €2,500. Purchasing a home is becoming increasingly difficult for larger numbers of people, including young people on good incomes. A recent report by the Society of Chartered Surveyors Ireland showed that in terms of live apartment-building projects currently under way in Dublin, the all-in development and sales cost is now somewhere around €400,000. It is important to stress that it is not just first-time buyers who are being locked out of affordable housing. Many Deputies and Senators are contacted regularly by people at a later stage in their career who, because of the loss of their family home arising from repossession or a relationship breakdown, are also unable to buy. This is particularly affecting single people.

The measures we are discussing today and, in particular, the way in which the serviced sites fund, which this amendment relates to, is used is really important because if the serviced sites fund is used in the correct way, it can deliver genuine affordability. We can use it to assist our local authorities and approved housing bodies to deliver homes at prices people can actually afford. However, the problem is that if we continue to repeat the mistakes of the past, and if we allow private developers to have access to this finance, the consequence will be twofold. The purchasers will end up paying higher prices and in some cases large numbers of affordable purchasers will not be able to afford those properties. Also, the taxpayer will be cross subsidising developers profit.

For clarity, in this instance, I am not talking about private building contractors. Private building contractors build all public homes. This amendment does not refer to that. Nor am I talking about finance. Almost all public housing is built with some form of borrowed finance, whether it be from Government borrowing, the Housing Finance Agency or other groups. This is specifically about private developers.

Briefly, I will give two recent examples of the impact bringing in private developers into affordable housing provision has had, which demonstrates why it does not make any sense. In my constituency, South Dublin County Council had a significant piece of public land named the Kilcarbery estate. Members of this committee who were previously with me on South Dublin County Council will know the estate very well. There was a proposition to build approximately 1,000 houses on that site, consisting of social rental, affordable rental, and affordable purchase. However, in their wisdom a majority of members of that council decided to sell that land to a private developer. As a consequence of that the all-in development cost of those homes, which are currently commencing construction, has increased significantly. For example, the cheapest discounted home on that land will retail for more than €325,000, which is way beyond the affordability reach of many of the people were are trying to target with the serviced sites fund.

The example is one we all know, because we debated it at length in the House previously, namely, O'Devaney Gardens where Dublin City Council, under instruction from the Department of Housing, Local Government and Heritage, engaged in a lengthy competitive dialogue with private developers and eventually signed a deal with Bartra. In this instance, they have access to the serviced sites fund and yet the all-in cost that will be paid for the affordable homes is €360,000. The buyer will pay €310,000 but will ultimately have to pay the €50,000 serviced sites fund amount back as well.

Compare that to what happens when one allows only the local authorities of the approved housing bodies sector to use the serviced sites fund. Homes are developed by, for example, Ó Cualann Cohousing Alliance, whereby the homes sell for between €160,000 and €200,000. This is well below, in fact, €60,000 less, than what is happening in Kilcarbery or in O'Devaney Gardens.

This amendment only refers to the serviced sites fund. We will talk about cost rental later. The amendment clearly states the only people who should have access to this fund in terms of the developer are not-for-profit agencies, local authorities, approved housing bodies, and community housing trusts. The consequences of allowing private developers access to this funding is that it pushes up prices, it locks people out from being able to afford these homes and it has the taxpayer cross subsidising private developers very substantial level of profit, which is not a good use of taxpayers' money. Therefore, I commend the amendment to the committee.