Neasa Hourigan (Dublin Central, Green Party)
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I wish to discuss build-to-rent construction. I will begin by being honest in saying I do not like it. I do not like it as a model and it did not exist when I was working in architecture. I do not like the fact there is a two-tier standard of housing that differentiates between what you might need when you are renting and what you might need when you own a building. I do not like the lower standards it engenders and that apply to build-to-rent versus owner-occupier units, and I do not like that Irish residents will be paying rent in perpetuity, mainly to foreign funds, for the pleasure of living in what I consider to be substandard housing, especially since the rents are often unsustainable at present.

However, even if I did like build-to-rent, I would still be concerned. The increasing prevalence of any typology in a particular area is a problem, especially in Dublin. It is an emerging issue in my constituency of Dublin Central. The Dublin Inquirer recently published an article which stated that between 2018 and 2020 as much as 70% of housing units granted permission in Dublin City Council were build-to-rent. My own review of strategic housing developments and their applications to An Bord Pleanála in the past year in the Dublin City Council area indicates a similar number, with approximately 65% of units being build-to-rent. In my constituency there is a single forthcoming development in Clonliffe College of more than 1,600 units, and 1,300 of those will be build-to-rent. That is the size of a small town.

There will always be a need for rental accommodation. People will need it for the short term, the medium term, the long term or for a particular life stage. They might need it for a certain type of employment or for financial reasons. They might need it just because some people like to rent and do not want to buy. We must have rental housing stock, but we do not need low-quality housing stock. Build-to-rent units have no requirement for cross-ventilation, minimal requirements for storage and minimal requirements for community amenity. They have a 5% variation, which means that there can be units that are smaller than the minimum requirement. They have relaxed fire safety regulations so there are no lobbies to kitchens and there are lower ceiling heights. There is a variation for sprinklers. That does not engender confidence in build-to-rent as a typology.

I am not sure that, when the then Minister with responsibility for housing introduced build-to-rent guidelines, he envisaged the level of uptake we see at present. I hear a great deal about social mix from other parties when we are developing sites. I believe we need a balance with build-to-rent developments. We limit the amount of social and affordable housing in developments. We should now, at a minimum, have a percentage cap on the build-to-rent element of any site, if not an outright ban. That balance is needed for sustainable communities so they do not become dominated by transient housing models. Those housing models are not transient because of the people in them, but because people do not want to live in them for long as they are not up to standard.

In November last year, the Department of Housing, Local Government and Heritage produced a welcome report on co-living developments. On foot of that report, the Minister took the view that the number of applications and permissions was too high and decided, effectively, to ban co-living. That was the correct decision in my view. I ask that the Department commence a similar review of what is happening with build-to-rent and the impact it is having on the market in inner city areas. We must make a conscious decision about the appropriate levels and locations for this type of development because every community deserves to have quality housing.

Peter Burke (Longford-Westmeath, Fine Gael)
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I thank the Deputy for raising this important matter. Members will be aware that what happened in Maynooth is not acceptable, as the Government moves quickly to address this issue. The Taoiseach was clear from the outset that the Government does "not want institutional investors competing with first-time buyers". He went on to say that, "Our priority is first-time buyers."

The actions taken yesterday by the Government are evidence of the priority we have given this matter and our commitment to levelling the playing field for ordinary people who rightfully aspire to owning their own home. I will return to this in a moment but in the first instance, I want to clear up any confusion that may exist between buy-to-rent and the recent bulk-buying of houses in Maynooth by institutional investors. For absolute clarity, let me state that the development in Maynooth did not go through the planning system as a build-to-rent development and, therefore, was not designed or planned as such. Concern around planning permission being allocated to build-to-rent is, therefore, not entirely accurate in this case.

The Maynooth issue has arisen as a result not of the build-to-rent application or planning permission but, rather, the standard-type planning permission with which we are all familiar. It was only after the planning process had concluded that the developer chose to sell all remaining units to an institutional investor whose intention to rent those units was not part of the original planning process. Prior to 20 May, if applicants or developers did not seek permission specifically for a build-to-rent development, they were still free to sell or rent any or all of the units, which included selling the units to anyone who wished to rent either one or all of the units. This is what gave rise to the issue of concern in the context of the Maynooth development.

I will summarise the issue and the way we addressed it. Yesterday, 19 May, saw the issuance of new ministerial guidelines under section 28 of the Planning and Development Act 2000, as amended, to address the regularisation of commercial institutional investment and regulations in certain housing developments. These guidelines will ensure new own-door houses and duplex units in housing developments are not bulk purchased by commercial institutional investors in a way that would cause the displacement of individual purchasers and-or social, affordable and cost rental units. The Minister, Deputy Darragh O'Brien, intends to bring further changes through in the Affordable Housing Bull 2021, which is currently before the Oireachtas, to enable local authorities specify a minimum percentage of these houses and duplexes solely for the purchase of owner-occupiers. Specific proposals will emerge in the coming weeks.

It is important for me to clarify the actions taken and that the reasons they were taken were different than those suggested by the Deputy in the question she posed. In that regard, I want to directly address the question posed and explain that the planning is not allocated. It is up to applicants or developers to seek planning permission specifically for build-to-rents, which permission has particular conditions and requirements attached. I will briefly summarise them. Chapter 5 of the Design Standards for New Apartments Guidelines for Planning Authorities addressed the relatively new and emerging build-to-rent sector and set out a number of key and distinct characteristics of this type of accommodation and relevant planning requirements. Build-to-rent projects are usually a single entity investment for a long-term rental undertaking comprising individual residential units within the development that are not sold off separately for private ownership and-or subsequent subletting individually, which is a key difference from the traditional housing development model. The guidelines provide for planning permission for specific build-to-rent developments to be sought from the planning authority. Where such permission is applied for, the proposed development must also include the provision for dedicated amenities and facilities, specifically for residents, in terms of communal recreational space and works spaces, as well as a range of other support services. My point is that there may be room for build-to-rent as envisaged and provided for in the planning guidelines while, at the same time, ensuring that safeguards are put in place to protect first-time buyers and owner-occupiers.

Perspective and balance are also important. Let us look at the data. Build-to-rent developments form a relatively small proportion of the planning applications lodged. As of February 2021, 48,397 residential units in total have been approved under the strategic housing development process, comprising 12,991 houses, 27,624 apartments and 7,782 build-to-rent units. Build-to-rent makes up 16% of the total residential units approved under the strategic housing development process. The amount of build-to-rent developments approved is currently, therefore, relatively small.

Neasa Hourigan (Dublin Central, Green Party)
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I thank the Minister of State. As he said, build-to-rent makes up 16% overall but that figure is 65% in my constituency. That is a predominance of build-to-rent. I take the Minister of State's point about Maynooth but we might just stick with the issue around the quality of build-to-rent accommodation. It is a lower standard and there are lower requirements for storage and public amenities. Even those people who rent should have a place to park their prams.

I want to bring to the Minister of State's attention something that has been raised in the Joint Committee on Disability Matters and not only by me. Some 13% to 15% of the population has a disability. Such people are more likely to be living in poverty and less likely to be purchasing their own homes. A considerable proportion of those people live in private rental situations. The minimum requirements for spatial set-outs in build-to-rent are fundamentally in conflict with the rights of people with disabilities. A 5% variance on spatial standards means that a studio or one-bedroom apartment of 37 sq. m can be brought down to 35 sq. m. That is a tiny amount of space without any room for storage. There is no generosity in that space. We already know there is an issue in accessing the home adaptation grant for private rental properties. There is no likelihood that the significant proportion of the Irish population who have a disability can seriously use the 65% of build-to-rent permission in my constituency. That is the outsized impact that build-to-rent has on areas such as Dublin Central. I would very much like if it was 16%.

For the record, I have no objection to professional landlords and landlords who are running properties in bulk. My query and concern is about the standard of the buildings we are now putting in place.

Peter Burke (Longford-Westmeath, Fine Gael)
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I thank the Deputy for her interest in the matter, which I know is genuine. As Minister of State with responsibility for housing for people with disabilities, I can tell the Deputy we are doing a huge amount of work on design in that space. That will be emerging in the coming weeks. We are also updating a new strategy, on which consultation is ongoing.

The question posed illustrated some confusion or misconception that may exist. I want to clarify the point about the curbing of planning or allocations for build-to-rent developments. I must say categorically that planning is not allocated. It is up to the applicant or developers to seek the planning permission specifically for build-to-rent, which has particular conditions and requirements attached, as I outlined earlier. Housing and planning, and how they interact, are complex, as the Deputy will know. As Minister of State with responsibility for these matters, I am grateful to have the opportunity to put the facts before the House and to dispel any confusion that may exist. I genuinely hope I have tried my very best to do this today. There are some real and tangible issues and I do not underestimate the impact that all of these have on our everyday lives. The Government has demonstrated by its actions that it does not want, in the first instance, institutional investors competing with first-time buyers and, for the Deputy's information, the new guidelines are now available on the Department's website, as I said.

I have already stated that affordable housing for buyers is a key priority for this Government. Legislation, namely, the Affordable Housing Bill, is currently passing through the Oireachtas. Giving first-time buyers a realistic chance is important, allowing them an aspiration of realising home ownership. It is important to recognise that a one-size-fits-all approach is not appropriate and Government policy must be broad and diverse enough to meet the varied housing needs of a modern, cosmopolitan society. A mix of typology is required for a varied market and in meeting the needs of one cohort, we cannot ignore another. That is why it is important to recognise the complexities involved and to ensure that in addressing one particular issue, we do not inadvertently create problems in another area. We have given careful consideration to all these measures and I will outline and raise the Deputy's concerns in terms of design with the Minister, Deputy Darragh O'Brien, and the Department.

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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I thank the Minister of State and the Deputy. I thank all Deputies who submitted matters for Topical Issue debate and the Ministers and Minsters of State who have attended to respond. To be helpful to Deputies, I will say that if they have specific concerns about the topic being raised, it would be helpful if those specific concerns were mentioned in the question itself so that a Minister, in responding, would have a chance to do the necessary research.