Oireachtas Joint and Select Committees

Thursday, 3 June 2021

Public Accounts Committee

Vote 34 - Housing, Planning and Local Government (resumed)

9:30 am

Mr. Graham Doyle:

HAP gives local authorities greater flexibility to accommodate households in their areas of choice, provides a secure payment for tenant and landlord alike, removes barriers for people to return to employment and leads to improved property standards.

In terms of reliance on the private rented sector for housing supports, it is important to note that fewer households were reliant on State support in 2019 than were in 2014. The principal areas where such supports are provided are under HAP and RAS and also under rent supplement, which is operated by the Department of Social Protection. In 2014, there were 92,000 tenancies under these schemes. By the end of 2019, this number had reduced to 87,000.

Leasing is one of the range of options available to local authorities to supplement delivery of social housing. It represents less than 20% of targets but allows local authorities to secure long-term homes in areas where demand is high but they have neither land available for housing nor existing stock. It frees up fiscal space so that more capital can be invested in build activity. Leasing mechanisms allow the State to address a greater proportion of social housing need in the short run within a tight budgetary environment. There are many types of leasing, including the enhanced lease and the repair and leasing scheme, which are on the list of topics for this meeting.

The enhanced leasing scheme is aimed at property developers and investors who can deliver newly built or yet-to-be built houses and apartments for leasing at a scale of 20 or more units for a term of 25 years. It secures homes at the earliest stage, provides certainty to the market and allows developers to secure construction finance in order to commence builds. It also allows for units to be secured in areas or developments that may not otherwise be available for social housing. One of the advantages of the scheme is that the lessor is obliged to provide management and maintenance services for the properties.

The repair and leasing scheme is aimed at owners of vacant properties who cannot afford or access the necessary funding to bring them up to the standard required for rental properties. Under the scheme, the cost of the necessary repairs to properties will be met up front by the local authority or an AHB, with the cost of the repairs being recovered from the property owner by offsetting it against future lease payments. This allows the local authority to access units quickly that may not otherwise have been made available for social housing. Dwellings brought back into use under the scheme span a range of dwelling types, including over-the-shop properties, former bedsits, city centre terraced houses and one-off rural dwellings.

While what I have set out reflects some of the positive indicators and increasing provision of social housing, we are keenly aware of the substantial work that remains to be done. The number of homeless households supported to move from emergency accommodation to homes increased by 16% between 2018 and 2019, but the challenge remains in making substantial and sustainable inroads into reducing the net numbers reliant on emergency accommodation and services and we continue to prioritise working with housing authorities and NGOs. Prevention is just as critical as developing pathways for exits. In 2020 alone, almost 5,900 exits from homelessness were achieved. All of these exits were to homes with tenancies. Since the peak in October 2019 when 10,514 individuals were homeless, there has been a fall of 2,432, or 23%, based on the most recent data published on Friday last, 27 May. While this trend is welcome, there is a continuing need to work with local authorities to develop and deliver high-quality emergency accommodation for homeless households. Expenditure on homelessness involves much more than the provision of a bed and a temporary roof. Complex other needs must be met.

Across all areas, we will be unrelenting in our commitment to achieve the best outcome for citizens using the resources provided to us by the Exchequer. The new programme for Government seeks to place an even more demanding ambition on delivery to be achieved in the years ahead. Rising to meet this ambition will be the cornerstone of social housing activity for this Department.

Housing expenditure in 2020 amounted to over €2.6 billion and supported the social housing needs of more than 24,000 additional households across our social housing delivery streams and those already in a support. Like many sectors, the impact of Covid-19 has been challenging for the Department and its stakeholders this year. However, we continue to push for maximum feasible delivery across all streams. In 2021, a provision of over €3.3 billion is available for the housing programme. This represents the largest ever investment in housing and will support implementation of the ambitions in the programme for Government, with a particular focus on increasing supply through new build activity.

I hope that my opening statement, together with the advance briefing provided to the committee, has provided a rounded context for the specific housing programmes listed for today's discussion. Housing is clearly one of the Department's key priorities. I assure the committee that my team, our delivery partners and I will continue to work day in and day out to support the delivery of much-needed homes for citizens. My colleagues and I will be happy to respond to questions or issues that emerge in the course of the committee's work today.