Dáil debates

Tuesday, 17 November 2015

Housing and Homelessness: Motion [Private Members]

 

8:30 pm

Photo of Alan KellyAlan Kelly (Tipperary North, Labour) | Oireachtas source

While the supply of housing is taking time, progress is being made by the Government, local authorities and approved housing bodies, AHB, sector. I met a gentleman today by the name of Patrick Kinsella. The Government, through the Peter McVerry Trust, acquired units that allowed him to get the keys to his new home, which is a five minute walk from where I am standing. He had spent more than a year in emergency accommodation. That is real progress.

On social housing, the Government has clearly and unequivocally accepted its role in putting in place the key elements required to increase the supply of social housing supports. However, it also requires a significant response from local authorities and approved housing bodies. In terms of the wider housing market, facilitating and encouraging the recovery of the construction sector and, in particular, the increased supply of residential units is the key objective of the Government's Construction 2020 strategy. This strategy which was published in May 2014 clearly sets out a cross-government plan of action to address issues in the property and construction sectors and, in particular, to ensure all critical bottlenecks that might impede the sector in meeting the forecasted residential demand are addressed.

Under Construction 2020 we have targeted a return to a sustainable proportion of GDP - 10% - from the low of 5% in 2012 for the sector, an increase in the number of construction jobs of up to 60,000 and an increase in output to the 25,000 houses required annually. While policies have been brought forward through recent legislation and again more recently through the Government;s decisions on housing supply, it is now the market that must respond to meet the demand and deliver double the current output of 12,000 houses per year. This is a significant challenge for the construction industry, given all that has happened in the past decade.

Let me talk about the most recent action we have taken to address the two key areas that require an immediate response. They are stability in the rental market and the incentivisation of extra supply of residential units. In tandem with the measures laid out in Construction 2020, the supply measures recently agreed to by the Government are designed to kick start the increased provision of housing at affordable prices in key urban areas, given the current dearth of supply which is impacting on rent levels, homelessness and competitiveness. While a number of important measures have been taken such as legislative changes around a vacant site levy, reductions in development contributions, Part V provisions and initiatives to improve financing, these measures will take time to impact fully on supply and in the interim shorter term measures are required. These measures, to which we are committed having fully in place by year end, include a targeted development contribution rebate scheme in Dublin and Cork, focused on large-scale developments at affordable prices; the fast-tracking of implementation of new apartment guidelines which, while supporting good quality build, will improve the viability of this type of development; and legislative amendments to introduce greater flexibility and streamlining of the strategic development zones provisions. My colleague, the Minister for Finance, has also indicated that the Ireland Strategic Investment Fund will support the delivery of housing-related enabling infrastructure in large-scale priority areas. This is in addition to the budget day announcement of the support which will be provided by NAMA within its mandate for the delivery of residential units.

On rent stability, the primary measure is to change the provisions around rent reviews in order that, instead of taking place every 12 months, they will occur every 24 months. This measure will give hard-pressed tenants certainty and stability, pending the coming on stream of supply. The proposal includes a sunset clause that will see the measure expire on the fourth anniversary of its introduction in order that the market has a clear indication that this is a short-term necessary measure. I am also bringing forward a series of amendments to the Residential Tenancies Act to improve its operation for the benefit of tenants and landlords. This series of amendments is quite sizeable.

Tenants will benefit from a number of measures, including a longer period of notification of new rent, confirmation of their rights under the Act and stronger verification arrangements where landlords seek to terminate a tenancy. Landlords will benefit from other measures, including a provision to prevent a notice of termination from being found to be invalid on the basis of a technicality and speedier PRTB enforcement by virtue of moving enforcement to the District Court. The measures will be provided through Committee Stage amendments to the Residential Tenancies (Amendment) (No. 2) Bill. The Bill will also include provision for the introduction of a deposit protection scheme, which I am sure will be welcomed. The introduction of a deposit protection scheme is a programme for Government commitment which is being delivered as part of this package. The motivation for introducing such a scheme is to provide a safe and secure means of holding tenants' deposits and for their speedy return at the conclusion of a tenancy. The dispute resolution function of the scheme will be carried out by the PRTB. The Bill provides for a new procedure to fast-track the hearing of complaints relating to the non-payment of rents and the build-up of rent arrears. It also extends the remit of the Residential Tenancies Act to approved housing bodies and their dwellings and will afford the same rights and obligations afforded to landlords and tenants in the private rented sector to those in the approved housing body sector.

As I said in my opening remarks, the Government's response to the housing challenge is comprehensive and timely. These measures will provide much needed stability in the key rental market, while also encouraging the real upscaling of the delivery of market housing solutions that we need.

We all accept that there will be those in society who will have difficulty in meeting their housing needs. The Government is committed to helping those who cannot support themselves. We set out a plan of action to do so under the social housing strategy 2020. The State, through the Government's social housing strategy 2020, has returned to its central role in the provision of social housing through a resumption of building on a significant scale, something which was abandoned by Fianna Fáil more than a decade and a half ago. The strategy is about building sustainable communities and a comprehensive response to the need for social housing. It targets the provision of more than 110,000 homes for those in need of social housing through the delivery of 35,000 new social housing units and meeting the housing needs of some 75,000 households through the housing assistance payment and rental accommodation scheme, at an overall cost of €4 billion to 2020. This will address the needs of the households on housing waiting lists and include additional flexibility to meet future demand.

In mentioning housing waiting lists, let me take a moment to address the numbers involved because there has been a lot of commentary on this subject. The 2013 summary of social housing assessments identified 89,872 households nationally as being in need of social housing supports. These are the most up-to-date and reliable figures available. The majority of this number, 46,584, or 52%, were found to be dependent on rent supplement and, therefore, already supported in the provision of housing by the State. The results of the 2013 summary of social housing assessment are based on a comprehensive review of households on housing lists on a set date and which involved local authorities contacting individual households to confirm their continued requirement and qualification for social housing support. All households which qualified for social housing support prior to 1 April 2011 were subject to a full review to ascertain whether they met the new requirements under the 2011 regulations, while those who qualified after 1 April 2011 were reviewed so as to ensure their continued compliance with the 2011 regulations.

The 2013 figure is subject to ongoing fluctuation due to households being allocated housing and new households applying for housing support. The recent claim that the 2013 figures have since increased to a figure of 130,000, on the basis of information obtained from current local authority files, is flawed as it does not compare like with like. It is likely that the latest figures put forward are based on the figures currently held on file by individual local authorities, which were not subject to the comprehensive review applied under the 2013 summary. For example, there may well be people included in the 130,000 figure who, while still appearing on local authority lists, may have secured employment or whose circumstances may have otherwise changed in the meantime, rendering them no longer interested in, or eligible for, social housing.

I can give an example of the dangers of taking an over-simplistic approach to the social housing waiting list. Cork City Council had a waiting list of 6,440 at the last full assessment in 2013 and in response to a freedom of information request this year, it reported a list of 8,043. In August this year, Cork City Council wrote to all households on its list to notify them that choice based letting was being implemented. As a result of this process and based on the responses received, there were 5,790 qualified households identified on the council's list at the end of October 2015, with a further 528 on transfer lists. One can see the danger of trying to take one point in time on the list without cleaning and analysing the data to ensure they are accurate. I should add that Cork City Council is in the second week of the choice based letting scheme and it has assured the public that the door is open for non-respondents to re-engage and respond within a reasonable time frame. Incidentally, choice based letting is an excellent way of letting local authority dwellings and giving people improved customer service. It should be available in all local authorities. I have asked chief executives to ensure that it is rolled out nationally.

To take a snapshot of housing need in a given county at a point in time in 2015 and compare it to 2013 data, which were compiled as a result of rigorous analysis, has methodological weaknesses which would distort the overall picture of need. The 2013 figures do not include duplicate entries and those already in local authority, voluntary or co-operative housing or the rental accommodation scheme, RAS, and, as such, are the most accurate that are available to date. While the approach of picking a point in time without examination and context is not the way to do it, I recognise that we must have up-to-date and comprehensive data on housing need on an ongoing basis. To ensure we have that data, the strategy includes a commitment to undertake housing assessments on an annual basis from 2016. In the meantime, throwing figures around from a flawed method is not helpful. We are working to house everybody and that will include all households identified when the more accurate housing list figure is available next year. Let me be clear that this Government is committed to providing social housing solutions to every household that is deemed eligible and in need at the end of that assessment process.

All the commitments made in the social housing strategy, both in terms of targets and funding availability, must materialise in new projects. I have made the funding available and have ensured that allocations and project approvals have been made. Following the strategy, I announced provisional funding allocations totalling €1.5 billion for all local authorities to meet an ambitious delivery target of 22,882 social housing units up to 2017. To date in 2015, almost €0.5 billion has been allocated to local authorities and approved housing bodies for the construction and acquisition of over 2,900 units. In addition, over €91 million worth of housing investment across a range of housing schemes to bring vacant social housing units back into productive use and to improve housing for people with disabilities, as well as retrofitting homes to improve energy efficiency, was announced in May 2015.

I have also provided funding for more than 300 new staff in local authority housing sections across the country to speed up the delivery of new social housing projects. All the details on a local authority basis can be found on my Department's website. Again, I urge all Deputies to be fully aware of and familiar with the targets, projects and funding for their areas and to work with and support their local authorities and approved housing bodies to ensure early advancement and delivery of projects. Given the time lines for delivering newly constructed projects, the first year of the strategy on the capital side was always going to have to rely on acquisitions and returning vacant units to use. My Department is working flat out with local authorities and approved housing bodies to deliver optimum output under all the capital programmes this year and the final picture in this regard will only be available at year end. However, I am confident that we will deliver in excess of 7,000 additional housing units across the range of social housing programmes this year.

While the activity in terms of housing supply is clear, both in private housing and social housing, the delivery takes time and, as I said earlier, those in most acute need are my priority. After yesterday's meeting with those working with the homeless, I am convinced that all the key players are doing everything in their power to deal with the immediate issues while the supply cranks up. The changes made in the rental market should also help to keep vulnerable households in their rented homes.

I am not prepared to leave people in emergency accommodation for a second longer than is absolutely necessary and I, therefore, secured Government approval for the delivery of 500 units of modular housing for homeless families across Dublin. The first 150 units are to be delivered quickly in the Dublin City Council administrative area. There will be 22 units by the end of December, 128 units will follow by late quarter one of 2016 through a fast-tracked procurement process and 350 units will be provided across the four local authorities in the Dublin region through a national procurement framework by mid-2016. This programme of modular housing provision is being implemented to help people in inappropriate commercial hotel arrangements. While the placement of households in these units will be on a temporary basis, such placements will offer a greater level of stability than possible in hotel accommodation while move-on options to long-term independent living are identified and secured. Furthermore, such arrangements will facilitate more co-ordinated needs assessment and support planning for access to all required services, including welfare, health and housing services.

On a broader level, the Government, through the homelessness policy statement, is very explicit in its commitment to a housing led approach to end involuntary long-term homelessness by the end of 2016. A range of actions is being taken to secure a ring-fenced supply of accommodation for homeless households and to mobilise the necessary supports to deliver on the Government's 2016 target. These measures have been identified in the Government's implementation plan on the State's response to homelessness and in the action plan to address homelessness.

The issues surrounding homelessness are often complex and multi-faceted. As such they require a multi-agency approach, and I note the very important work carried out by non-governmental organisations, NGOs, in this regard. The plans are a whole-of-government response to dealing with homelessness, and the implementation is being overseen by a group of senior officials drawn from key State agencies dealing with homelessness and the associated issues of housing, welfare, health care and so forth. In terms of funding, the homelessness budget for 2016 will be €70 million, an increase of 32% on the 2015 allocation of €53 million and a 55.5% increase on the 2014 allocation of €45 million. Preventing people from becoming homeless is the key objective and this requires a range of actions and various stakeholders to contribute towards homelessness prevention. In this regard, the tenancy sustainment services funded by many housing authorities, the public awareness campaign being implemented by the Private Residential Tenancies Board and the Department of Social Protection's interim tenancy sustainment protocol and national tenancy sustainment framework are all working to keep people out of homelessness.

In all their years on Dublin local authorities, did the proposers of this motion ever propose to introduce a 50% protocol to allocate social housing to those who are homeless or are facing homelessness, something that will take approximately 1,000 people out of homelessness?

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