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

I propose to take Questions Nos. 63 and 83 together.

I thank the Deputies for their questions. Against the background of the affordability pressures in the rental market in certain areas, the Government is determined to make affordable or cost rental a major part of the housing system. Under this approach, rents are set at levels to recover the construction costs and facilitate the management and administration of developments but with only a minimal profit margin included. To this end, on 22 January, I announced a suite of affordable housing initiatives, including a new affordable rental scheme, to be based on a cost rental model. Further details on the suite of initiatives announced last week can be found on the dedicated Rebuilding Ireland website.

A pilot project is being progressed by Dún Laoghaire-Rathdown County Council, in conjunction with the Housing Agency and an approved housing body, using land owned by the agency. I expect the pilot scheme to go to the market later this year to secure a development partner and the best value for both the State and prospective renters.

I want to see local authorities realise new affordable homes from their lands without delay. Following the housing summit with local authority chief executives on 22 January, I have asked each chief executive to furnish a report to me by middle of February, setting out his or her plans for delivery. I expect further affordable rental proposals, based on the cost rental model, to be put forward by local authorities, especially those in the main urban centres, as part of this process.

The delivery of additional affordable housing will rely on the State developing the full potential of its residential land bank. To oversee this important work, I have established a dedicated residential land management and development group. In addition, my Department will lead an expert group to examine the issues around and provide advice on the most appropriate way forward in delivering a more sustainable rental sector in Ireland. I am considering the terms of reference, formation and composition of the group with a view to establishing it in the coming weeks. In parallel, discussions are ongoing with the European Investment Bank on its experiences in developing and supporting cost rental and other affordable models that could also work in Ireland.

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