Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

Obviously, when we talk about affordability and what is affordable to an individual, it depends on their means. The Central Bank has income limits in place when it comes to taking out a mortgage. When we talk about affordability, we look at two aspects. We look at what is affordable for the developer or builder to be able to be build a house that can then be sold at an affordable price, and we have brought in measures to help with that. Home Building Finance Ireland is one measure that is on the way, and there is LIHAF 1, the newly announced LIHAF 2 and other measures to help builders to build at more affordable prices. The fast-track An Bord Pleanála planning process is another measure in this regard.

The new affordability scheme that will be announced shortly will be looking again at income limits to help those people who are not accessible or eligible for social housing but who cannot afford to put together a mortgage for houses in high demand areas. We will be looking at income limits above the eligibility for social housing in order to bring that to a range of probably between €45,000 and €70,000 or €75,000. That will be finalised when we announce the criteria for access to the affordability scheme.

Of course, we have a number of models already under way in terms of affordability. There is the Ó Cualann model of co-operative housing which was delivering a two-bedroom house for €140,000 and a three-bedroom house for €170,000. We want to do that now at scale, which is what the €25 million fund is for.

With regard to rent pressure zones, to date, the data shows us that rent is increasing by less than 4% in those zones, compared to over 8.5% last year. We will have quarter three data on rent pressure zones next week, I hope, and that will tell us if the trend is continuing. If it is, that is welcome. Every quarter new areas come under those zones, which means rents at an affordable price.

To conclude, within the LIHAF funding there are rent affordability measures on some of those sites, in particular in Cork and also on a site in Dublin, which will allow for rents at an affordable price.

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