Frances Fitzgerald (Dublin Mid West, Fine Gael) | Oireachtas source

The Deputy raised two important issues, namely, the changes to the Central Bank mortgage rules announced yesterday and the issue of homelessness. I will address both of them.

We welcome the changes to the prudential rules announced by the Central Bank yesterday. These rules had set borrowing conditions on those seeking to take out a mortgage. The changes will be welcomed. When we examine the figures on first-time buyers in Ireland, we know that the percentage is far too low. This gives a much needed opportunity to those first-time buyers who have not been able to get on the ladder. As a result of the easing of the rules, they will now be able to do that. This will be welcomed by individuals throughout the country. It is also important to note that it will impact on supply.

Yesterday Professor Lane stated, "The 90% loan to value ratio limit for all first-time buyers simplifies the overall framework, with only 5% of lending permitted above this level". He also stated that the rules needed to be adjusted because they were too complicated, but that the limit of a 3.5 times loan to income ratio on borrowing remains. I believe that deals with the point made by Deputy Cowen. Professor Lane further stated that he will monitor the situation, as will the Government. I believe that these are welcome initiatives that dramatically change the mortgage lending rules. In that regard, I note the reporting from various experts today which speak of a dramatic change. The move is expected to lead to a surge in home building, which is precisely what is required in the country. The situation will be kept under review, but we need an increase in supply and for first-time buyers to be able to move out of renting, as they are paying high rents, and get a deposit together. This allows them to do that. This is a very welcome change for a hard-pressed group, but the situation will be monitored.

The Deputy is well aware of the figures on homelessness. The new figures we have today are those for October. There is a slight increase, but they also show that there is a slowdown in the rate of increase, which must be welcomed. None of us wants to see families in accommodation for the homeless or hotel accommodation. The Minister has made it clear that it his intention, as I am sure it is everyone's intention, that no family would have to live in hotel accommodation. We are working steadily towards ensuring that that is the situation and there will be a change in the early months and towards the middle of next year.

There is an issue, but progress has been made. None of us want to see families in this situation. Let me note, however, that in 2016 there were 4,240 extra social housing units and that 1,755 homes were purchased, 670 were built and 1,500 voids were made habitable. These are significant figures and we are seeing many families moving out of homelessness. As a Government, we have acknowledged that this is a crisis, but it is being dealt with. The plan was announced in July but, as the Minister acknowledged this morning, it will take time.

See this speech in context