Paudie Coffey (Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy English, to the House for this debate on housing.I do not agree with Senator Craughwell, who said that statements are futile. It is an opportunity for all of us to raise issues of concern, put them on the public record and suggest solutions to the Minister of State, who, I know, is willing to listen. It is also an opportunity for the Minister of State to report progress and for us to contribute to that. It is very worthwhile, and we invited the Minister of State to come to the House for this debate.

I acknowledge the Government's commitment of €6 billion to fund housing construction activation in the social and private housing sectors. Along with the stakeholders, the approved housing bodies, the local authorities and many other agencies working to resolve the current housing challenge, we need to see delivery on that substantial commitment. The Government continues to prioritise homelessness in terms of housing solutions, housing access and affordability for people to get a roof over their heads.

I have said numerous times that it is all about supply of social and private housing. It is about increasing the number of housing units available to those who most need them. The Minister of State has comprehensively outlined the rising number of public and private housing units and solutions being delivered in various regions. He told us that last year more than 8,000 social housing units were provided and the target is to reach 12,000 units per year. I welcome that commitment the Minister of State has made here on the public record.

We have heard some criticism of the housing assistance payment, HAP, scheme, which essentially is an interim solution to help people find housing until adequate housing comes on stream. It has allowed thousands of people to find homes. Some people criticise that scheme, but what is their alternative to HAP while we await the additional social housing units coming on stream? I believe there is no alternative and it would only increase the problem if we do not engage in the HAP scheme. It provides thousands of units for people requiring homes.

The Rebuilding Ireland home loan scheme received some criticism prior to the summer recess. I acknowledge the work of the Minister of State and the Minister, Deputy Eoghan Murphy, in providing additional funding for the scheme. More than 1,000 people have taken advantage of this home loan. There are people who would have been caught between stools in that they would not qualify for social housing and would not qualify for a mortgage through the banks. The Rebuilding Ireland home loan scheme is proving a success. A further €363 million has been made available in addition to the €200 million previously provided.

In further progress, up to the end of June 2019, more than 22,600 new homes became available for use throughout the country. More than 30,000 planning permissions for new homes have been granted. On-site construction has commenced for more than 24,500 homes. These statistics should reassure people who are concerned that not enough housing is coming on stream.

There has been a growth in planning applications for apartments. Especially in the cities, there is more demand for apartments for young workers and students. There has been a 156% increase year on year following the changes the Government made regarding design and height guidelines. Clearly, something is working in that regard. It will offer more housing solutions for people in the future, which is welcome.

In my area, I recently visited some successful projects that are under way and supported by the Department of Housing, Planning and Local Government. The Minister of State mentioned thelocal infrastructure housing activation fund, LIHAF, which provided €3.5 million to Waterford City and County Council. I recently visited a LIHAF scheme in Kilbarry where water, sewerage and electricity infrastructure is being put in place to open those lands to new development. The builders are on site and 400 units are expected to be delivered by 2021. Many of those have already been front-loaded and delivered. Respond, a well-recognised approved housing body that has done great work around the country, has 69 units under construction on an adjacent site in Kilbarry, and they are due to be completed in quarter 1 of next year. There are many similar schemes. At Knights Grange in Lacken, a turnkey project funded by the Department of Housing, Planning and Local Government, 20 units have been completed with keys being handed over and another 20 are under construction.

I am just mentioning one area of Waterford city. I have visited many other schemes that are completed. The Alms Houses in Tallow were opened recently by the former mayor, Councillor Declan Doocey. Families recently moved into nine new units in Coolfin Woods in my village in Portlaw and the old cinema site in Dungarvan. Solid progress is being made. I know the Minister of State is also going around the country opening many of those schemes. We recognise that we need much more.

The Minister of State mentioned access to affordable housing. I welcome that the Department is again engaging with local authorities and has provided €310 million units for the serviced sites initiative on public lands. That was successful in the past. People can benefit from a subsidised site, making it more affordable for people to access homes, and we need to see more of that.

I agree with Senator Craughwell on the issue of rental versus mortgage repayments. Many individuals and families are finding they need to pay more in rent than they would in mortgage repayments. We need to address this issue. It is not entirely a matter for the Department of Housing, Planning and Local Government. The Department of Finance needs to address Central Bank lending regulations. We need to be careful to get the balance right in this regard. We do not want a repeat of what happened in the past with people overextending themselves and lending out of kilter with what people can afford, leading to another crash.

However, where people have shown they can consistently pay rent over a period of time, it should be taken into account for mortgage approval purposes. People are struggling to get mortgage approval, even though they are paying a consistent rent that may even be higher than their mortgage repayments would be. Government needs to address that issue. I have raised the matter with the Minister for Finance, Deputy Donohoe, because it is an area where improvement is needed.

I wish the Minister of State well as he continues to engage with all the stakeholders in an effort to improve supply of both private and social housing. Obviously, social housing must be the priority in terms of Government funding, and I am pleased that the supply is increasing throughout the country. We need interim solutions. I commend the Minister of State and his colleagues on implementing those. We are getting there and we need to stick with it. The challenge remains. The rent pressure zones are expanding in some areas. They will not be addressed until we address the fundamental factor of housing supply in cities and in the regions.