John Lyons (Dublin North West, Labour)
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The Government is currently examining a number of measures in preparation for its social housing strategy and wider housing policy. Securing a deposit for a house is challenging for young families, in particular, given the fall in incomes and the inability to save money.

One innovative response has been the rent-to-buy scheme which can effectively allow a tenant to convert a portion or a proportion of rent paid into a deposit to buy at the end of a defined period. A three-year pilot scheme was launched by Dublin City Council in 2010 and interest was strong at the time. This model should be examined as part of a future housing and social housing policy.

One of the key points of the rent-to-buy scheme is that obligations on both the tenant and the seller are adhered to and that timetables are met. However, I know of a case in my constituency where, unfortunately, a proportion of the Dublin City Council rent-to-buy tenancy agreements have not been met. This problem must be dealt with because the scheme is a good scheme.

Approximately 64 tenants in my constituency are part of the rent-to-buy scheme. This scheme is available to people on the council's affordable housing list and is aimed in general at low to middle income families who do not fit the social housing criteria. Properties were viewed in September 2010 and tenancies commenced in the period from November 2010 until April 2011. The original terms of the scheme state that people who availed of the scheme were supposed to rent their property at an affordable rent, at 80% of the estimated market rent for three years. At the commencement of the contract the council set the terms for the future sale of the property. Eighty per cent of the rent paid by tenants over three years was to be deducted from the sale price of the property as agreed between the tenant and the council at the time. However, there had been a change to the scheme in September 2013 whereby Dublin City Council, without any consultation with the tenants who signed up to the rent-to-buy scheme, informed them of two changes decided by the council. They were informed that the properties would not be offered for sale at the market value agreed at the beginning of the rent-to-buy scheme and that there would be no deduction for rent paid over the term of the three years. The council had broken two significant terms of the agreement with the tenants.

While the lack of consultation was regrettable, it is accepted that the motivation of the council was to realign the scheme with falling apartment prices.

From the outset, the scheme should have been proofed against market fluctuations, perhaps in a way similar to that adopted by NAMA in the context of deferred payment schemes.

At no stage during the re-evaluation process carried out in 2013 and 2014 or when the three year tenancies were coming to an end were tenants informed of any delay relating to the scheme. Everyone operated on the basis that when the three year tenancies ended, the properties involved would be offered for sale and that those tenants who did not want to proceed to purchase would surrender their properties. As a result, people put mortgage arrangements in place, saved money for deposits and incurred the usual expenses relating to buying a home. It is seven to nine months since their tenancies ended, but the city council has not offered any property for sale. I understand the council is prepared to extend rental contracts to the end of this year and then review whether the technical issues holding up the sale of the properties have been resolved.

As matters stand, the 61 residents of Prospect Hill, Finglas, to whom I refer are in limbo. They do not know whether the agreements to which they signed up under the rent-to-buy scheme will be honoured or whether the money they paid in over three years and expected to be deducted from the eventual sale price agreed at the outset will be offered back to them. They also do not know whether the additional rent they have paid beyond the term of the three year scheme will be taken into account in any future deal.

The rent-to-buy scheme is a good one, but there are a couple of problems relating to it which need to be solved. I ask that the Minister for the Environment, Community and Local Government contact Dublin City Council in order to discover how effective the scheme is and in the interests of addressing the issues of concern to the people of Prospect Hill in Finglas.

Paudie Coffey (Waterford, Fine Gael)
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I thank the Deputy for raising this matter. Increasing both public and private housing supply is a critical issue and the Government's construction strategy, Construction 2020, published on 14 May, is a blueprint for a properly functioning and sustainable construction sector. It provides for a strategic approach to the provision of housing based on real and measured demand and addresses the full range of relevant issues, including the planning process, financing, access to mortgage finance and the construction workforce. The Government has committed, under action 8 of Construction 2020, to publish a social housing strategy. This strategy, which isin preparation, will provide the basis for an enhanced approach to social housing provision in Ireland. The strategy is being developed by my Department, with input from key personnel in the Housing Agency and the National Economic and Social Council. A public consultation process was undertaken by the Housing Agency during the summer. A wide range of submissions from key stakeholders were received and have informed the development of the strategy.

The social housing strategy will build on the strengths of the sector's key players and provide for a coherent, sustainable and reliable framework for the delivery of social housing support in Ireland. The strategy will necessarily concentrate on social housing issues, but it will also make the connection with key issues affecting the Irish housing market as a whole. It will quantify the nature of the challenge with regard to housing need, housing demand and housing supply. Based on 2013 figures, 89,800 households are in need of social housing supports. The Construction 2020 target of tripling annual housing output in the next six years further informs the scale of the challenge. A range of delivery mechanisms are being considered and the strategy will provide pathways for the delivery and financing of the increased supply of social and public housing which will be required in the coming years.

In the context of the issue raised by the Deputy, Dublin City Council launched a pilot rent-to-buy scheme in 2010. This scheme was intended to provide Dublin city with a further option for dealing with unsold affordable houses. All properties under that pilot scheme have been allocated and I understand no further offers are being made at this time. The Government's 2011 housing policy statement announced the standing down of all affordable housing schemes in the context of a full review of Part V of the Planning and Development Acts 2000 to 2013. The review of Part V of the Planning and Development Acts, which provides for social and affordable housing supply, has been completed by the Housing Agency - at my Department's request - and submitted to the Government. I anticipate that any legislative change required on foot of the review will be incorporated into the general scheme of a new planning Bill that is expected to be published shortly.

John Lyons (Dublin North West, Labour)
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I thank the Minister of State for his reply. He is correct to state all units advertised by Dublin City Council were taken up under the rent-to-buy scheme when it was launched 2010. As stated, the scheme is an excellent one. It allows people who cannot afford to put aside money for a down payment or a deposit on a house to get onto the property ladder. In addition, 80% of the rent they pay on their dwellings for three years goes towards an eventual sale price agreed with the local authority. Effectively, this means that they can live in the property, in respect of which they are setting aside a down payment and which, I hope, they will be able to purchase in the future. It is a win-win for everyone involved. Unfortunately, the goalposts were moved and those who signed up to agreements have been informed by the city council that it does not know whether it is going to allow them to buy these units as a result of some technical difficulties that need to be ironed out, whether - if sales proceed - the market price agreed three years ago will apply and whether it will provide some waiver or recognition of the additional rent they have paid for seven or eight months beyond the terms of their original agreements.

If nothing else, the tenants in Prospect Hill, Finglas, should be treated fairly and consulted by Dublin City Council. If an agreement is reached, they should be given recognition for the fact that have spent over three years in their apartments and that they are currently paying rent which they did not plan to pay. They do not even know whether they are going to be able to buy the homes in which they are living. Will the Minister of State ask his officials to, at the very least, contact Dublin City Council in order to discover what is happening and ensure the 61 families in Prospect Hill who signed up to the original agreements will receive answers and be treated fairly?

Paudie Coffey (Waterford, Fine Gael)
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Given the concerns raised by the Deputy, I will ask my officials to engage with Dublin City Council in order to examine this issue to see if any progress can be made or a resolution found.

In the wider context, the key focus must be on significant intervention by the State on multiple fronts in order to ensure delivery and provide an adequate supply of secure, good quality housing in sustainable communities for all citizens as the country continues on the path to recovery. In the interests of ensuring short-term supply is maximised in tandem with any new-build programme, the social housing strategy will be key and include a range of actions to maximise the supply, management and maintenance of social housing stock in the longer term. The strategy will be finalised in the coming weeks and take cognisance, in particular, of the outcome of the Estimates process.