Kieran O'Donnell (Limerick City, Fine Gael)
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I thank the Ceann Comhairle for facilitating me in regard to this important topic. I want to begin with the Housing for All document. The review of the income eligibility for social housing is pending. It is something I feel strongly about. As a Deputy in Limerick city and north Tipperary, the whole issue of social housing is something I deal with every day of the week with constituents. When we look at the income limits for social housing, we find that the last substantial change to those limits was in April 2011, approximately 11 years ago. There were also some changes whereby the cap for the child allowance was removed last year, which was welcome.

Back in April 2011, the bands for a single person equated approximately to the average industrial wage. That average industrial wage is now up to about €43,000, which is a 20% increase. Furthermore, in that period we have seen an increase of nearly 100% in rents and we have seen an increase of 45% in the average cost of a house, from about €200,000 to €290,000. In April 2011, there was a €5,000 increase in all bands. I am proposing that this time there should be a minimum €5,000 increase across all bands. Second, the €5,000 is a 20% increase for band 3, which is a single person on €25,000. I would like to see a 20% increase in the allowance for an adult, which would go from 5% to 6% with the cap going from 10% to 12%. For a child it would go from 2.5% to 3%.

I do not want something to be done that would have the unintended consequence of being hugely inflationary. With the limits I have proposed, people would still qualify for the housing assistance payment, HAP, and social housing. The follow-on from that is that anyone who is involved in social housing should also aspire to be able to purchase his or her own home. The incremental purchase scheme is in place and I would advance it. However, at the moment many people might not be able to qualify for it with the current income limits for social housing. What I am proposing would increase the amount of a mortgage for someone who is applying for the incremental purchase scheme. This would be of the order of €20,000 because you would have people on €5,000 plus higher income limits within social housing.

Where is the review? When will it be published? I am talking about a €5,000 increase across the board on all bands plus an increase from 5% to 6% for the adult dependent, increasing the cap from 10% to 12%, which is two adults, to keep pace and then an increase in the child allowance from 2.5% to 3%. That is a 20% increase across the board and it somewhat keeps pace with the increase in the average industrial wage. Thus, the same basis that was there in 2011 would apply today. It will also feed into the incremental purchase scheme. Regardless of who one is, one should be able to aspire to own one’s home. The current income limits for social housing make that difficult under the incremental purchase scheme.

Peter Burke (Longford-Westmeath, Fine Gael)
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I thank the Deputy for raising this important issue and for the consistent work he has done on this, specifically on the income eligibility criteria and the workings he has articulated in his argument. The overarching principle of social housing support is to provide adequate housing support to those households unable to provide accommodation from their own resources. Applications for such supports are assessed by local authorities in accordance with the eligibility and need criteria set down in the Housing (Miscellaneous Provisions) Act 2009 and associated social housing assessment regulations.

The regulations introduced a standard system for assessing applicants for social housing in 2011, as the Deputy referred to, establishing a fair and more consistent and transparent approach to determine eligibility for support. To this end, they prescribed maximum net income limits for each local authority in three different bands according to the area concerned. The income bands are expressed in terms of a maximum net income threshold for a single-person household, with a 5% allowance for each additional adult household member, subject to a maximum allowance under this category of 10% and, separately, an additional allowance of 2.5% for each child. Given the cost to the State of providing social housing, it is considered prudent and fair to direct resources to those most in need of social housing support. The current income eligibility requirements generally achieve this, providing a fair and equitable system of identifying those households facing the greatest challenge in meeting their accommodation needs from their own resources.

Housing for All - a New Housing Plan for Ireland, was published in September 2021 and committed to reviewing income eligibility criteria for social housing. The review was considered necessary because, as the Deputy mentioned, the cut-off points for each income eligibility threshold band were determined when average rent prices across the country were decreasing. The continuing suitability of the banding structure was questionable given the significant rental price growth throughout the country since and given that private rents in all local authority areas had risen considerably since thresholds were originally set in 2011. The review was undertaken in 2021 and examined, among other things, the efficiency of the current banding model; the income limits applicable to local authorities; and the new initiatives being brought forward in affordability and cost rental housing. It was completed towards the end of last year, and included recommendations for short and longer term reform of the income eligibility arrangements. The Minister, Deputy O’Brien, is considering the review’s findings and recommendations and he expects to decide on the proposed changes to the recommendations shortly.

The review of income eligibility is part of a broad suite of social housing reforms and complements measures being delivered through the Affordable Housing Act 2021 to put affordability at the heart of the housing system and prioritise the increased supply of homes. The Act was commenced in August 2021 and established a fair basis for four new affordable housing measures, including delivering affordable homes on local authority lands; introducing cost rental, a new form of tenure; introducing first homes shared equity scheme; and expanding the Part V planning requirements to increase the 10% contribution requirement to 20% and applying it to cost rental as well as to social and affordable housing. The Act was supported through unprecedented funding, committed through Housing for All, of €4 billion annually. Specifically, 54,000 affordable housing homes, comprising 18,000 cost rental homes and 36,000 affordable homes, will be delivered between now and 2030. Targeted delivery for 2022 is 1,550 new cost rental homes and 2,000 affordable purchase homes.

I hear Deputy O’Donnell’s proposal clearly. I know the review is complete and I expect that the Minister will act on it shortly. I thank the Deputy for the substantial amount of work he has brought forward on this pressing issue.

Kieran O'Donnell (Limerick City, Fine Gael)
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Over the past 11 years, rents have gone up by 100% in the private sector, the price of houses has gone up by 45%, and the price of the average home has gone from €212,000 to €295,000. The income limits were set based on the average industrial wage, so these limits must go up to keep pace with that. My proposal is a straightforward one. I ask that we make a €5,000 increase on all bands, an increase for the adult dependant by the same 20% from 5% to 6% with a cap of 12%, and an increase for the child from 2.5% to 3%, which is the same increase. That is a relatively modest proposal. However, it ensures it should not be inflationary for rents. Furthermore, it ensures more people qualify for HAP.

The incremental purchase scheme requires people to be on a social housing payment for a period of ten years. That is either a council tenant or someone on the rental assistance scheme, RAS, or HAP. We have to have this integrated model such that people can go from being in rented accommodation to being able to purchase. However, they must get supports. For anyone on more than €30,000, the incremental purchase scheme is a 40% discount and I know that is changing, but that makes a huge difference. There is social housing and the incremental purchase scheme. The layer above that would be affordable housing and then there are people buying privately. One of the starting bases is that we get the social housing income limits correct, fair and in keeping with what has happened over the last 11 years.

When does the Minister of State expect the review will be published? Will he discuss these measures with the Minister?

Housing for All is a great document but we need an integrated model.

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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I suppose the question is, what does "shortly" mean?

Peter Burke (Longford-Westmeath, Fine Gael)
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That is a very difficult question to answer at times. I can only respond on items that are under my control. The Minister for Housing, Local Government and Heritage, Deputy O' Brien, has the review on his desk and is considering it in the context of the other affordability measures that he introduced by way of the Affordable Housing Act.

Under Housing for All the review was due to be published in the fourth quarter of 2021 and the same applies to the tenant purchase scheme. Both should go hand in hand in terms of assessing where the results should land.

Deputy O'Donnell's proposal is very sensible. Since 2011 our society and our economy have changed so much in terms of the journey we have travelled. Constituents have come to my office in very vulnerable positions, looking for a sustainable path to getting on the housing ladder. Everyone should have the aspiration to own their own home or see a pathway to try to do that. I will bring the issues that Deputy O'Donnell raised and the very clear proposals he made to the Minister. It is not often that someone comes into the House with very clear proposals in terms of each the bands, the 20% increase in allowances for partners and children, and the cap. The Deputy has put forward very clear proposals. I will bring them to the Minister and revert to the Deputy.

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Shortly?

Peter Burke (Longford-Westmeath, Fine Gael)
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Yes, shortly.