Dáil debates

Wednesday, 13 June 2018

Housing: Motion [Private Members]

 

4:40 pm

Photo of John Paul PhelanJohn Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

Yes, but we did not grow up in a palace. I acknowledge the role of social housing and even significantly large chunks of social housing. There is a whole side of Kilkenny city, the western environs, which is virtually all composed of it. One can see by the house design in what era the houses were built. They were largely privately bought out by their tenants and some are now among the most costly houses that can be bought in Kilkenny. I refer to the old cut-stone social hoses that were built in the 1920s or 1930s near the Garda station.

I think there was a comprehensive decision, and it has been agreed pretty unanimously in respect of some of the larger-scale social housing developments on the south side of Limerick city.

Perhaps it is also the case in parts of Clondalkin. I do not know Clondalkin that well. In parts of north-west Dublin city, where the tower blocks were removed and other social housing units provided, the necessary social infrastructure was not put in. It was not so much that the housing itself was a problem but that communities were transferred out of the city into the suburbs and left to their own devices. That happened in different waves in the 1960s and 1970s and into the 1980s. There was a change whereby social housing should be more integrated into every other form of housing. At the time these issues were discussed, I was a Member of the Seanad and there was not much political opposition.

I refer specifically to some of the points made, progress is being made in the housing market. I know that at times perhaps it is imperceptible or not fast enough for people, but the indicators in most, if not all, areas are positive for the first time in several years. For example, there were 20,800 planning permissions in 2017, which was an increase of 27% on 2016. In the year to April, there were 23% more commencement notices and a 35% increase in housing scheme registrations. At the end of April, An Bord Pleanála had approved 19 planning applications under the new fast-track arrangements for almost 3,000 homes and 3,600 student bed spaces.

With regard to social housing, the Government has ring-fenced a capital programme of more than €6 billion. A significant expansion of the social housing build programme was evident in the fourth quarter of 2017. The construction status report indicated there were 850 schemes or phases at the end of 2017 delivering 13,400 homes, a substantial increase on the 8,400 homes in the programme a year earlier. All of this was facilitated by an investment of €1.6 billion of taxpayers' money, including an additional €100 million provided in December 2017. This year, the Government will allocate more than €1.8 billion to housing programmes, an increase of more than €500 million in 2017. To better co-ordinate the response to homelessness, the homelessness interagency group was established in September, and the Minister recently received a report from the group, which he will bring to the Government shortly. Earlier this week, he also received a report from the DRHE. The content of both reports will be reviewed carefully and I expect him to introduce a number of policy responses to address the issues raised.

As the economy continues to progress towards delivering the levels of housing supply needed, the Government is committed to ensuring new homes are accessible and affordable. The affordable purchase schemes were stood down in 2011, but it must be borne in mind that market conditions at the time resulted in house prices falling by more than 50% in some places and there was consequential significant easing of affordability during that particular period. However, the Government recognises we still face challenges with regard to affordability and the rental sector. Some of the recent target measures are helping in this area. We have measures such as the fast-track of planning reforms, and I referred to recent permissions approved by An Bord Pleanála. There is a €200 million investment in enabling infrastructure to service or open up housing land, with proportionate affordability dividends for house purchases, and the progression of large-scale mixed tenure housing projects with social, affordable and private housing on publicly owned lands. First quarter figures indicate the introduction of the RPZs is beginning to have a moderate positive effect on rent inflation. It is certain that rent would be higher without the RPZs and other controls.

We are supporting first-time buyers to buy a new or second hand home through the new Rebuilding Ireland home loan scheme, and 220 applications had been recommended for approval by the end of April. As the year progresses, we expect this to increase significantly. I will endeavour to get a more complete response for Deputy Gino Kenny on the issue he raised.

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