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

While Covid is front and centre in people's minds, which is very understandable, other issues are not getting the attention they deserve. One is the jaw-dropping decisions being taken on housing. I want to focus on one of those, namely, the long-term leasing of social housing. Incredibly, social housing is now being actively sold as a financial product. One website states:

There is no requirement to deal with tenants, as local councils (or housing agencies) are your lessees. This is a hands-off situation with no risk of vacancies or the usual tasks associated with managing property lets. The cash comes directly from local government into your bank account, there is no intermediary. Build a portfolio of approved social housing units, houses, and apartments that will be rubber stamped by local councils and housing agencies for long-term leases. Sleep peacefully without worrying about stock markets! Your obligations stop at buildings insurance. There is no local property tax when leases are over 20 years.

This model effectively means developers build housing estates and rather than the State purchasing 10% for social housing at cost price, the properties are leased for 20 or 25 years with a four-year rent review. Houses are refurbished at the end of the lease and handed back to the developer, and presumably the tenant is then chucked out.

The dominant means of delivery of social housing is now Part V and it is increasingly and, in some areas, exclusively delivered through long leasing. Are councils obliged to accept leasing if offered under Part V? Do they really have a choice? The Minister for Housing, Local Government and Heritage has stated on the record of the Dáil that it is up to local authorities to decide, but it seems to be a take it or leave it scenario.

I have been told in the House that there has been no change in policy. I have to ask whether the Dáil is being told the truth or are we being misled? In addition, there is little transparency regarding the process in the planning files. Thousands of these tenancies will be in place before people realise they are being taken for complete fools.

An example given on hobbsfinancial.ieis a two-bedroom apartment in Dublin 8. It is stated that the investment, including all acquisition costs, is €290,000 and after 25 years the investor would have earned a rent of €520,000, a profit of €229,000. That is, of course, courtesy of the taxpayer. It goes on to state that the investor will have a refurbished property and no property tax obligations. There will be thousands of these. This may not be a product of Taca or the Galway tent, but it is right out of the same playbook.

Has the Government examined the cost of this? Has it considered it from a societal perspective? What is the Taoiseach's view on social housing being sold as a financial product? Will he change that policy?

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