Dáil debates
Thursday, 7 December 2023
Ceisteanna Eile - Other Questions
Housing Schemes
10:20 am
Richard Bruton (Dublin Bay North, Fine Gael)
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16. To ask the Minister for Housing, Planning, and Local Government if he will activate the cities fund to ensure that more of the affordable homes developed in cities, particularly by the Land Development Agency, LDA, can be offered for affordable purchase, and make it easier for potential eligible buyers of such homes to establish that there are sufficient buyers with the necessary access to funds to avoid any uncertainty about take-up. [54192/23]
Richard Bruton (Dublin Bay North, Fine Gael)
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My constituency has been a significant beneficiary of Government policy and we now have over 2,000 social homes and 3,500 affordable homes in the pipeline. The crux of the matter is that there are not enough affordable homes for purchase. Too many are going in the buy-to-rent direction. I need to see initiatives to change that.
Kieran O'Donnell (Limerick City, Fine Gael)
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In the limited time I have, I will say that this is a matter the Deputy has raised on many occasions and we take what he says on board. We want that mix. The LDA is moving into that affordable purchase space. We want to look to increase that.
The Croí Cónaithe cities scheme was launched in May 2022. This scheme is a viable measure designed to support the building of apartments for sale that would otherwise not be built, providing a greater range of tenure in our urban centres. The scheme aims to bridge the gap between the delivery cost for buildings and apartments and the market price, where the cost of building is greater.
People can also avail of the first home scheme and can use it in conjunction with the Croí Cónaithe scheme, and also in terms of the help-to-buy scheme. The Croí Cónaithe cities scheme is part of a suite of housing measures designed to increase social, affordable and private supply.
As the Deputy referenced, the LDA can apply under the scheme to develop and sell apartments at market to owner-occupiers. The LDA can also deliver affordable purchase apartments at below market value.
The Deputy's point is well made. We are working with the LDA.
The LDA is very much doing that mix. In terms of affordable purchase, even in my own area of Limerick it is working with the local authorities. It is something that we keep under constant review.
10:30 am
Richard Bruton (Dublin Bay North, Fine Gael)
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I would suggest two things, if I may. First, the cities fund should be used by a partnership of the LDA and the local authorities to develop the affordable purchase piece. Second, the local authorities should create a pipeline of a substantial number of eligible buyers with provisional approval in order that developers, whether the LDA or others, can have confidence that there will be enough people to purchase homes. The risk factor is the problem and is stopping this option being developed.
Kieran O'Donnell (Limerick City, Fine Gael)
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The local authority affordable purchase fund can be used by the LDA in conjunction with the local authorities. That is there and that is its intended use. The local authorities and the LDA can partner up and funding can be provided under the local authority affordable purchase fund.
Many local authorities are already seeking expressions of interest from potential purchasers under the affordable purchase scheme. Indeed, we are encouraging the local authorities to do that. We are in constant contact with them and I will follow up on this to ensure that it is being done nationwide.
Richard Bruton (Dublin Bay North, Fine Gael)
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The key is to request that local authorities develop a pipeline of people with provisional approval who would be eligible. That is the key to giving people confidence that there will be enough buyers when homes come to market.
Kieran O'Donnell (Limerick City, Fine Gael)
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The local authorities identify schemes and seek expressions of interest. Deputy Bruton is making a more general point. Some local authorities would be doing it already but the Deputy makes a very good-----
Richard Bruton (Dublin Bay North, Fine Gael)
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They do not advertise them until they are built, which is too late.
Kieran O'Donnell (Limerick City, Fine Gael)
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That is correct although in some cases they advertise beforehand. I have seen some local authorities advertise schemes in advance of them being built. They identify schemes and before they are built, they advertise them. The Deputy's general point is well made though and is something on which I will follow up.