Malcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

I take this opportunity to reflect on a number of the matters touched on during the debate on the Bill. I reiterate that local authorities are not obliged to enter into agreements to deliver Part V obligations through leasing. A clear preference for housing authorities is to acquire units on site in order to comply with relevant Part V conditions. Leasing to satisfy Part V elements should only be used in limited circumstances as set out in ministerial guidelines and circulars. It is clear that, to date, this has been the case. Part V leasing delivery represents a very small proportion of total Part V output. Of the 742 Part V homes delivered in 2020, just 16 were subject to a Part V lease and total delivery between 2018 and 2020 was 39 dwellings.

The Government's objective and priority is to focus strongly on new builds and, in particular, local authority-led new-build activity. The major focus of the €3.3 billion in funding being made available for the delivery of housing programmes this year will be local authority and approved housing body build activity, with an overall target of 9,500 homes for this year.

The general leasing programme is separate to Part V leasing but utilises the same kind of agreement. A total of 1,440 leased properties were delivered in 2020, including the delivery under key programmes such as mortgage to rent and repair to lease. Mortgage to rent is a very important scheme that will allow families and households in mortgage distress to remain in their homes. The repair and lease scheme and the buy and renew scheme allow local authorities to return vacant homes in their area for use as social housing. Both mortgage to rent and repair and leasing schemes are key leasing delivery streams.

Leasing provides additional social housing on a long-term basis, allowing us to address a greater proportion of social housing need than can be addressed by means of construction and acquisition programmes alone. The build programmes are the main focus of delivering stock but leasing provides for additional delivery of homes on a waiting list. The priority for us all must be the delivery of homes for the households that need them. In many cases, leasing is assessed to be a viable option where local authorities do not have access to adequate land or build pipelines to cater for demand in the area. I understand the concerns arising from the fact that under a Part V lease agreement, a property is not owned by the local authority at the end of the lease term. The issue of asset transfer at the end of lease is tied up with the balance sheet status of the contract. If the house was to transfer to the State at the end of the contract, the lease payments would be on a general balance sheet, leaving less capacity for other State investments. Funding housing in this way gives the Government much more flexibility in its spending and allows us to deliver more social housing than we could under the capital programmes alone.

Concerns have also been raised regarding the value for money of Part V leasing and leasing in general. Relative cost-efficiency is always an important consideration in the mix of delivery but it is not the only consideration and this must be viewed in the context of policy objectives and wider concerns. The cost of leasing is kept under constant review but it is not the sole determinant of value.

I am also aware of recent commentary relating to a loophole in the private rental market whereby landlords are registering higher rents than they are charging in reality with the Residential Tenancies Board, RTB, in order to keep market rates high. The Minister, the Department, the Housing Agency and the RTB keep the operation of the rental market under review and any necessary legislative change will be made. If there is any evidence of this taking place and affecting the rents paid for leasing, it is of concern. I ask that any Deputy with any evidence of the practice to make it available to my Department as a matter of urgency so appropriate steps can be taken.

It is clear from this debate that all speakers agree on a fundamental point, which is that we need more homes. We need more homes for the rental sector, more social homes and more affordable homes. We also need more homes for first-time buyers. We need to increase supply. Earlier in the evening there was mention of the figure from the Economic and Social Research Institute of 33,000 homes being required annually. There is no single approach to deliver this number and we should have a multifaceted strategy drawing on the capacity of all sectors, including the private sector. We need to increase local authority builds and ensure we have a fit-for-purpose and affordable private housing market. We need an attractive and secure private rental market. We must ensure we can use every possible mechanism to bring vacant housing back to use. That is why, in formulating the Government's new housing plan, Housing for All, we are looking at avenues to increase delivery across all areas.

The Programme for Government: Our Shared Future commits the Government to the mission of housing for all.

The document articulates core beliefs that everybody should have access to good quality housing for purchase or rent at an affordable price and that the State has a fundamental role in enabling the delivery of new homes. It recognises, not only that the provision of more affordable housing has a profound benefit socially and economically, but that affordable housing contributes to a high quality of life for citizens.

The publication of the affordable housing Bill on Tuesday was a key step in that process. The Bill will be the first comprehensive and stand-alone legislation dedicated to the provision of affordable housing in the history of the State and will provide for the first scheme of direct State build affordable homes in over a decade. It will provide the first ever national scheme for the delivery of long-promised cost rental housing and will introduce a new affordable housing purchase equity scheme for homes in private developments. This will be landmark legislation and a game changer for affordable housing in this country. This Bill is delivering on the programme for Government commitment to put affordability at the heart of the housing system and to prioritise the increased supply of affordable homes.

The measures being introduced in this Bill will, in the near term, improve market access for first time buyers, stimulate an increase in the number of new homes being developed and provide State supported rental housing at more affordable prices. This Bill provides the statutory underpinning for affordable housing going forward. The detailed operations in the scheme, outlined in the Bill, are already under way and are being developed further, including terms of target setting and longer term funding provision in the context of the development of Housing for All and the Department's submission to the review of the national development plan.

I refer to homelessness. The publication of the Bill is just one of many steps the Government needs to take to deliver on its commitment in Housing for All. Our most recent homeless data for March 2021 shows that the total number of homeless individuals, including dependants, is 8,060. This represents an 18.6% decrease on February 2020 when there were 9,907 homeless individuals recorded. There were 913 families in emergency accommodation in March 2021, representing a 38.6% decrease on March 2020. This is the lowest number since March 2016. There is a declining use of hotels and bed and breakfast accommodation in Dublin and there has been an 80% reduction in the number of families accommodated in commercial hotels in the past year. While these decreases are welcome, the number of people experiencing homelessness is still a major cause for concern and the numbers are still far too high. We need to continue the work we have started and make sure numbers continue to come down.

The past year has seen extremely challenging conditions in social housing delivery for the construction sector as a whole. The unprecedented nature of the pandemic has led to major disruption of the sector and we still face considerable challenges in delivery. However, the Government's priority remains the acceleration of the social housing build programme. It is essential that any change in Part V leasing policy is carefully considered in terms of its implications for social housing delivery in the short to medium term. Therefore, the current policy will be reviewed in the context of the work being undertaken on the Government's forthcoming Housing for All plan.

I would like to mention the issue of institutional investment. The Minister is opposed to institutional investors purchasing inappropriate properties, such as housing estates, in bulk where there is no evidence of real additional supply. I know this has been referenced by Members. The Minister is considering taking additional measures to tackle this and already, on 4 May, he secured Cabinet agreement on increasing Part V from 10% to 20%, to include affordable purchase, which will ensure that every development has an affordable section. This, in itself, will prevent cuckoo funds from snapping up entire developments. Institutional investors occupy a relatively small share of the housing market; approximately 5% of tenancies. Investment that leads to additional supply is welcomed and needed. However, the move of some institutional investors into traditional estates, where demand and viability are not issues, is deeply concerning. The Minister for Finance sets out the regulatory basis for investment, in particular in ensuring that where an investment brings profit, a fair share of tax is paid, and that a whole-of-Government approach is required to address the issue. Our commitment in that regard will be dealt with as a matter of urgency.

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