Mr. Niall Cussen:

We engage constantly with our colleagues in the Department of Finance and the National Asset Management Agency, NAMA. There has been some interaction between those organisations on whether there are impediments in respect of apartment developments. In the city centre proper, particularly in the Docklands area, a combination of various different things have moved the viability point of city centre apartment developments from a marginal position to a reasonably viable position in recent months. These include what we are doing in the context of the Rebuilding Ireland strategy, what we did in the context of the Stabilising Rents, Boosting Supply package before that, the standardisation of approaches to apartment standards, the development contribution rebate scheme and changes to Part V.

There is a difficulty in peripheral locations where the cost of financing an apartment development for a build-to-sell as opposed to a build-to-rent model can pose certain challenges. As members of the committee will be aware, one is all in from the start when developing an apartment scheme. It has to be built out to the end. It is not like building houses where ten can be built, sold and the cash turned over. It is a much more straightforward proposition from a development finance perspective. One could be down €10 million or €15 million before getting the first sales back from an apartment scheme, which can take time. It can happen over a very short period where there is very strong demand. It can take longer to sell when one is competing with other conventional housing products. There are a number of issues there. That is an area on which we will have further engagement with our colleagues in the Department of Finance, with NAMA and with the local authorities, to see what further steps we can take.

Going back to the broader point around planning policy and meeting current housing needs, we have very clear choices available on how we meet that need now and over the next decade or more, as the Minister's initiative in Ireland 2040 has indicated. We have to try to secure more compact, sustainable urban development. That includes the efficient use of urban land, increasing densities or more compact development generally. It is vital for the sustainable development of our urban areas that apartment developments become more successful and more viable to progress in the short to medium term.