Malcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

I welcome this opportunity to update Members of the House on the progress made in the time since the publication of Housing for All. It is 14 months since the plan was published and although the landscape and environment in which we are operating is ever-changing, real progress has been made. It is important to take stock of this progress and today is the perfect opportunity to do so.

We are seeing a combined level of commencements, completions and planning permissions that have not been seen in more than a decade. The construction sector is growing, affordability measures are beginning to take effect and the comprehensive review of the planning system is close to completion.

Housing for All is a comprehensive plan that covers all aspects of the housing system. However, the aforementioned ever-changing environment, means the Government must be both proactive and pragmatic when it comes to emerging issues. The greater range of settlements will further support the viability of developments and ensure the right houses are built in the right places.

Housing for All represents the most ambitious housing plan in the history of the State. This Government is committed to building an average of 33,000 homes a year over the lifetime of the plan. Achieving this ambitious target will require enormous effort, but as I said, the progress made is already evident only 14 months into a nine-year plan. Covid-19 and its associated lockdowns has understandably hampered the industry, but bounceback has been promising and the strong pipeline of home-building activity is encouraging.

New home completions over the past year to the end of September 2022 stood at more than 27,500 homes, which means the new-home completions in the first nine months of 2022 exceeds the total number of homes completed in all of 2021. In the past 12 months - October 2021 to September 2022 - commencement notices for the construction of almost 27,500 homes were received.

The delivery of social housing is being prioritised to address the problem. It is important to note that the Minister, Deputy Darragh O'Brien, has made it clear to local authorities that if there is a risk of tenants being evicted into homelessness as a result of a landlord selling the home, the local authority will be supported by the Department to purchase the home.

We are focused on accelerating social housing supply and have a target to deliver 9,000 new-build social homes this year. The latest construction status report from the second quarter of 2022 shows 8,247 social homes on-site with an additional 12,327 homes at design and tender stage, and 118 new construction schemes, which gives a total of 1,647 homes being added to the pipeline. In total, the report provides details on more than 27,500 new-build social homes across 1,566 schemes. In addition, recent changes the Minister made to the housing assistance payment scheme will help secure more tenancies and prevent households slipping into homelessness.

Housing for All is a plan for everyone, and addresses social, affordable and private housing provision. The secured funding will support the delivery of new social homes, with the main focus on capital investment to deliver much-needed new-build homes. The Government is also committed to increasing home ownership, and numerous schemes have been introduced to help buyers realise their dream of owning their own home. The first home scheme, launched in July, will support up to 8,000 affordable home purchases over the lifetime of the scheme. Since its introduction, more than 800 applications have been received with 606 approvals issued. This shows that the Government's determination to increase home ownership is more than an empty slogan. We have also increased the affordable housing fund grant from a maximum of €100,000 per unit to up to €150,000 per unit for local authority affordable homes. This measure is aimed at tackling the viability gap and ensuring as many affordable homes are built as possible.

Earlier this year the Minister launched the enhanced local authority home loan scheme, which is aimed at supporting first-time buyers on low or moderate incomes who are unable to secure the mortgage they need from a financial lending institution. Budget 2023 guarantees €250 million for lending under the loan. Since February 2018, under the previous and current iteration of the loan, more than €471 million has been lent, which has helped some 2,860 households achieve their dream of home ownership. The help-to-buy scheme is also being extended, at current rates, until the end of 2024. The scheme has been a significant support for first-time buyers of new homes. Since the scheme's commencement in 2017, some 35,000 people have benefitted from it.

Addressing issues in the rental market is also vitally important. Having good quality, affordable and secure rental accommodation is crucial to many sectors of society, be it those workers and families who are spending too much on rent, for students who need somewhere to live to further their education or the employers who worry about the availability and affordability of housing for their employees. Housing for All is focused on tackling supply and affordability issues in the rental market. The plan contains targets, actions and guaranteed State investment of more than €4 billion a year in housing aimed at increasing supply, which in turn will help increase access to affordable rental housing.

As I already mentioned, Housing for All commits to building more than 9,000 social homes next year. Increasing our social housing stock will reduce the demand on the private rental market. As committed to under Housing for All, cost-rental homes are now beginning to come into the market at scale, some of which were advertised at rates that are at least 25% lower than market rent. Hundreds of cost-rental homes have been tenanted less than 12 months since the passing of the Affordable Housing Act last July, which has facilitated this form of rental tenure. We are also supporting the delivery of cost-rental homes by increasing the cost-rental equity loan from a maximum of 30% to a maximum of 45% per project.

Although these measures are vital for relieving the pressure on the rental market going forward and are a long-term solution to the problem, the Government recognises that for many this is an immediate issue which needs an immediate solution. For those paying rent on their principal private residence, the Government is introducing a new rent tax credit valued at €500 per year. This measure will apply for 2023 and subsequent tax years. However, the Government is providing that it may also be claimed in respect of rent paid in 2022. Approximately 400,000 people are expected to benefit from this credit.

The Department of Housing, Local Government and Heritage will also review the operation of the private rental sector. This review will take into account the significant regulatory changes in recent years and the Government will act on its recommendations. It will ensure that our housing system provides an efficient, affordable, safe and secure framework for both landlords and tenants.While homes are being built at record rates and the key indicators are all positive, it will take time for the measures set out in Housing for All and the additional supply we are seeing to make the difference needed. There is no overnight fix to the issues we face, but Housing for All addresses the root of these problems. The updated action plan shows the Government is constantly monitoring, that the situation progress is being made, and that the plan is agile and flexible enough for immediate action to be taken when and where it is needed.