Catherine Murphy (Kildare North, Social Democrats) | Oireachtas source

We can all agree that 2020 has been a long and strange year. This time last year, we were facing into a general election where we knew that health and housing would be significant issues, and they were. Health has been front and centre all year and there is greater public understanding of the need for a functioning health service, a proper number of ICU beds, proper bed capacity, etc. However, the housing crisis has not received the same attention this year. One of the most important things for society is citizens having secure roofs over their heads. While a substantial housing budget has been approved for 2021, how it will be spent is critical.

I am increasingly seeing new builds being long leased. Instead of the State acquiring housing under Part V agreements, it is in some cases accepting 25-year leases on a 90% of market rent, four-year review basis. At the end of the 25 years, the properties revert to their developers. This appears to be the most expensive way of delivering social housing with no asset at the end. Essentially, the State is paying the mortgage on a new house for the mortgage's duration after which ownership will revert to the developer. What happens then?

This is not only happening in respect of Part V housing. New estates are being long leased. In some parts of the country, they are being acquired by housing associations and local authorities. According to information I received in response to a recent parliamentary question, there were 2,600 leases last year and the average cost was €13,000 per annum. Assuming that cost remains the same over 25 years, it equates to €845 million, which is not too far short of €1 billion, with no assets at the end.

A spending review published by the Department of Public Expenditure and Reform last month showed that it could be up to 30% more cost efficient for a local authority to build its own housing instead of buying ready-built turnkey units. When the housing assistance payment, HAP, was introduced more than six years ago, some of us warned that if it was not accompanied by a large public housing building programme, it would become unsustainable. HAP was introduced as a short-term measure, but there is no timeline for phasing it out. Realistically, that will only happen when there is sufficient housing stock.

Large sums are being spent on homelessness. For years, many functioning families and individuals have experienced homelessness, with significant evidence of developmental delays for children and high stress levels for all involved. Dublin City Council's spending on homelessness has grown as the problem has grown, but the issue is not confined to Dublin. This spending represents approximately 20% of the council's budget for next year.

Will the spending review by the Department help to change the policy on direct builds? Will the Government undertake a review of the 25-year lease policy as a matter of urgency?

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