James Browne (Wexford, Fianna Fail) | Oireachtas source

I thank everybody who has contributed to this very important debate. As my colleague, the Minister of State, Deputy Troy, stated at the outset, this Government is absolutely committed to building more homes in Ireland. We are working continuously to meet the challenge to design and implement policies that shift the dial on delivery and to review and improve our approach where we identify obstacles to meet our targets. In that regard, we want to work collectively with Deputies throughout the House to bring forward solutions to the challenges that we face. This requires addressing the many challenges around housing delivery to achieve that shared goal rather than creating further obstacles or difficulties.

Addressing Ireland's housing shortage requires a substantial increase in the supply of new homes for purchase and rent. In that respect, simplifications are not constructive. They do not build homes and they set public opinion against channels that do. We must be clear on our purpose in attracting private capital; it is to increase the supply of housing. While we hear a lot of high-level remarks in here and a lot of ideology, we do not hear how we will increase that supply of housing and how we will get to those houses that we need delivered.

While Housing for All is backed by unprecedented State investment of more than €6 billion per annum, developing homes will require a significant amount of investment capital. The Government cannot deliver on this programme alone. Through the updated modelling undertaken by the Department of Finance, it is estimated that €20 billion of development funding per annum, comprising both debt and equity, will be required to develop the 50,000 homes per year that we need. While a portion of this will come from our domestic banks, the majority of private development finance will be acquired from international sources. Institutional investment, such as investment by Irish and European pension funds, is critically important in generating the additional supply of homes we need. Without this investment, activity in the housing market would be much reduced and would increase the significant pressure already facing renters and prospective homeowners.

Capital from well-established investors, including pension and insurance funds, is a normal facet of housing systems in many of our European neighbours and beyond. External sources of finance will be needed to bridge the gap between the overall funding requirements to build 50,000 homes each year and that provided via direct Exchequer funding, State borrowing, HBFI and the domestic banking sector. Apartment development in particular is capital-intensive. The forward investment provided by institutional finance has been a key enabler by unlocking the development capital required, enabling construction to proceed and to deliver much-needed supply. Many of these homes would not be available today without that investment. Since 2019, apartments as a proportion of overall completions have risen from 16% to 33%. This would not have happened in the absence of non-bank funding.

Overall, it is clear that in order to continue to make progress we need investment from multiple sources both private and public. Our mix of policies must reflect that. The State is doing more than it ever has before. An unprecedented level of public resources is being directed at housing. That is the right thing to do and the Government will continue to do it.

However, we cannot do it alone. We need more housing of every type – social, affordable and private. This can be achieved only through the public and private sectors working together and their respective strengths. The Government is firmly focused on the delivery of more homes for families, individuals, those who need support from the State, private owners, renters and right-sizers. Housing needs are varied and we have a multifaceted response to them. We have seen much progress in the delivery of homes; however, we know we need to do much more and we are committed to doing what is needed.

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