James Browne (Wexford, Fianna Fail)

The Land Development Agency is a key part of the Government’s housing strategy in delivering affordable homes for rent and sale in communities right across Ireland. The Department of Finance’s report on the sustainable funding options for the Land Development Agency considered the financing needs of the LDA and the implications of this need on the business model and operational activities of the agency. This report and the pressing need for further expansion in housing supply of all tenure types have informed the Government’s decision in June to expand the role and remit of the LDA.

The annual report of the LDA for 2024, for example, which will be laid before the House this week, shows that the Government invested a further €325 million from the Ireland Strategic Investment Fund in 2024. The LDA invested €535 million in 2024 which, combined with existing assets, means the LDA holds €600 million in cost-rental assets now and €305 million in assets under construction at the end of 2024.

The Government has committed to empower the LDA to widen its operational model to allow it to increase its level of capital recycling thorough the disposal of more units through affordable purchase schemes and, where appropriate to local housing demand, private sales. The LDA will also seek to further develop its land assembly function to ensure a healthy pipeline of serviced sites with a potential for further capital recovery where appropriate.

This expansion to the role and remit of the LDA will leverage its existing expertise and skills to accelerate the delivery of housing in vibrant, sustainable communities all over Ireland and support the LDA reaching the mature stage of its lifecycle as a major developer and provider of affordable housing. The LDA entered into spending commitments of €824 million in 2024 which will deliver around 1,750 homes and has major projects for direct delivery at various stages of planning and development which will deliver over 10,000 homes by 2029. In addition to changes to the LDA’s operating model, officials from my Department are currently liaising with the Department of Finance on the treatment of the LDA’s cost-rental activity with respect to corporation tax. This has the potential to further support the sustainability of the LDA.

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