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

Regarding the point raised by Deputy Cian O'Callaghan concerning carbon budgets, all developments are now covered by building regulations and energy standards. We had two contributions that said we are giving too much to developers, while others said we are not giving enough. The LIHAF scheme is important in frontloading infrastructure. Deputy Verona Murphy made disgraceful comments regarding wasting energy pursuing a climate agenda. This is a reminder that this issue is about our common home as well.

In closing, I acknowledge the current highly-visible reality of price inflation. New housing supply in Ireland, like much of the EU, has been impacted by periods of reduced construction activity in the context of the Covid-19 crisis and global supply chain issues.

The war in Ukraine has exacerbated inflationary pressures with rising energy and material costs impacting many sectors, including construction. Ireland is not a unique case but we are working to overcome these issues. Supply is a key issue and supply is increasing. Notwithstanding the challenges, the Central Bank's recent estimates of completions this year and next are in line with Housing for All targets. This trend will only accelerate in coming years. Positive figures for new homes completed and commenced, which were all higher than they have been for many years, indicate Housing for All is working. Over the past four quarters, 22,219 homes were delivered, 5,569 in the first quarter of this year, while 34,846 new homes were commenced in the 12 months to March 2022.

In the meantime, policies are being implemented to assist those for whom affordability and home ownership are particularly challenging. As we have said before, the Government believes that in home ownership we must use all tools at our disposal. The Affordable Housing Act passed overwhelmingly by this House last year laid foundations for a range of affordable housing schemes which like cost rental and the local authority affordable purchase scheme are now either already in operation or, like the first home scheme, very close to launch. With regard to recent reports which under-represented our affordable housing targets in referring singularly to local authority-led affordable housing, I want to reconfirm that this Government aims through the multiple channels it has activated to provide more than 28,000 affordable homes by the end of 2026.

Looking at the full picture, affordable housing will be provided through a combination of more than 7,500 homes provided directly across at least 18 local authority areas where affordable housing has been clearly determined. I stress that these targets are intended as a baseline for delivery that is led and arranged by local authorities. It will be further provided through 8,000 homes under the first home affordable purchase shared equity scheme which will be available nationwide in the period 2022 to 2026; 7,800 affordable purchase and cost-rental homes through the Land Development Agency delivered on State lands via Project Tosaigh. Some 1,500 affordable homes under Part V arrangements are targeted for delivery by local authorities. Some 4,000 cost-rental homes to rent are to be provided by approved housing bodies using the cost rental equity loan facility.

The local authority home loan and the help to buy scheme will also continue to help improve affordability for lower and middle income earners, allowing them to access home ownership in a way that otherwise they could not. This year, funding of €676 million has been made available specifically on affordability measures. A guaranteed €20 billion in State investment in housing will be made available to the end of 2025. The new national first home scheme to assist affordable purchases in the lower end of the price distribution of the private market is an example of a short-term, limited intervention. It is carefully designed to mitigate inflationary risk while helping people to achieve the stability of home ownership over the next four years. With the State's €200 million investment doubled by strategic partnership with mortgage lenders, first home is scheduled to be launched shortly.

I must re-emphasise our strong commitment to the State in action through public channels. Locally affordable housing delivery is also being placed on a more strategic footing. Local authorities with a strong and identified affordable housing need were asked to prepare affordable housing delivery action plans. In doing so, they take into account the intended provision of affordable housing by the Land Development Agency and approved housing bodies and assess the level of affordable demand in their area and arrange provision accordingly. Their plans are currently being finalised and it is expected that they will be ready for publication in the coming months. The targets for each local authority are aligned with the level of need arising in those areas as determined by the housing need and demand assessment tool which was developed in co-operation with the ESRI. Where local authorities such as Waterford, for example, have identified a demand and can secure delivery of a high number of affordable homes in their area, that affordable housing fund supported delivery is welcome. For those local authorities without affordability targets, we are aware that localised affordability challenges can exist in key towns. Where this occurs, funding can be made available if needed to address those localised challenges.

I am very happy to see that local authority delivery this year for the first time in well over a decade. The first such homes are being advertised and sold in Cork city, Fingal and south Dublin at significantly discounted prices with more new homes to follow across the country later this year. A pipeline of delivery is being developed by local authorities with nine further schemes expected to go on-site in 2022. Local authorities are also implementing the State's offering of long-term, low-cost mortgage credit with the home loans being designed to be particularly accessible for single people and those eligible for fresh start principles.

Overall, I am not discounting the very real challenges that ordinary people are facing. The outlook is more positive than might be presenting. The Housing for All strategy is working. Supply is increasing and, in particular, affordable schemes are being implemented to assist ordinary people into home ownership. In its amendment to the motion, the Government reflects these realities and I hope makes clear its commitment to the core principle that everybody should have access to good quality housing to purchase or rent. We have progressed much already and there is a long way to go. We are moving in the right direction.

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