Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

To date, almost 1,600 units, across 20 housing authority areas, have been approved by my Department under the social housing leasing initiative. This comprises 1,281 properties in respect of which full funding approval has issued and a further 316 units in respect of which provisional approval has issued. A number of other proposals are also under consideration by my Department.

I will circulate in the Official Report a table showing the breakdown by housing authority of the 1,281 properties in respect of which full funding approval has issued. The average leasing cost in respect of these units is just over €390 per month. However, the majority of these units are unsold affordable dwellings, where the average cost would be less than if they were either leased by housing authorities from the private sector or provided directly by approved bodies. Therefore, the average cost is likely to increase as other projects are progressed. The lease period in respect of the unsold affordable units is five years, while in all other cases the lease is for a minimum of ten years. The 1,281 units involved comprise 193 one bed units, 613 two bed units and 475 units with three bedrooms or more.

The issue of including break clauses in lease agreements is a matter for housing authorities and approved housing bodies to deal with as part of their negotiation process. My Department has, however, issued guidance to authorities advising them to exercise caution in making provision for break clauses and that where such clauses are agreed, the authority concerned must be satisfied that it will be able to rehouse the occupant in the event of the option being exercised.

Overall, I am pleased with the progress being made in rolling out the new leasing initiative. With 1,600 units approved, the initiative which I only introduced in February this year is becoming a crucial delivery mechanism in meeting housing need, particularly in the context of the prevailing constrained fiscal environment. I have recently announced the extension of the leasing arrangements to the voluntary and co-operative sector which will further accelerate activity under the initiative. I am confident the target to source 2,000 units under the leasing arrangements in 2009 will be substantially achieved by year end. Table

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