Seanad debates

Tuesday, 10 December 2019

Housing (Regulation of Approved Housing Bodies) Bill 2019: Second Stage

 

1:30 pm

Photo of Michelle MulherinMichelle Mulherin (Fine Gael) | Oireachtas source

Last weekend, I paid a very interesting visit to a construction site in Islandeady outside Castlebar in County Mayo where New Era Homes Limited is building a passive house. It is a very impressive, concrete building. While the house will be A-rated, it will cost no more per square metre than a regular house built with concrete. The annual energy bills for the property will amount to about €100. This is undoubtedly a house of the future. The firm has been engaged in Castlebar to construct a small development on behalf of an approved housing body. The heating comes from photovoltaic solar panels on the roof and goes into each individual room. The foundations are also insulated and there will be less heat loss. It is very impressive.

There is an affordability challenge for people trying to buy houses. Under the current criteria, borrowers can borrow 3.5 times their gross income. This means people cannot get loans of the size needed to buy a house or construct a new house. We are aiming to increase stock but builders cannot get enough money to make it worthwhile to build. It is a catch-22. Will the Government raise the borrowing limit with the Central Bank? If a household's energy bill will be €100 annually, surely people will save a lot of money in energy costs over their lifetime?Surely what I am saying has to be fact if we believe that energy efficiency measures and renewable heat sources work. I believe they do. Why should people who are buying new houses that are A rated, such as the one I described, not be able to get an increased multiple of their gross incomes? Why can they not be entitled to borrow more, given that they will save money elsewhere? This issue needs to be taken by the horns. It is impeding the construction of new houses for people who would otherwise be in a position to service mortgages for their houses. By coming out of rented accommodation, it means that-----

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