Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 117: To ask the Minister for the Environment, Heritage and Local Government his views on the finding in the NESC report on housing that up to one-third of all new households formed in the period 2001-2006 will fall below the affordability threshold. [11119/05]

Noel Ahern (Dublin North West, Fianna Fail)
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The estimate mentioned in the question, while referred to in the NESC report, does not arise from NESC but from a team of researchers assembled by four non-governmental organisations to study the first round of housing strategies prepared by local authorities. This study, entitled An Analysis of Housing Strategies and Homeless Action Plans, 2002, did estimate that approximately one-third of new households to be formed in the State between 2001 and 2005 would fall below affordability thresholds. However, the researchers also expressed some concerns, which are reiterated by NESC, about the accuracy of the calculations as they found wide variation in estimates of affordability across the different housing strategies, and reckoned that some over-estimation had occurred.

NESC suggested that the methodology in the housing strategies for estimating affordability problems and experience in using them will improve as authorities review and update their strategies. These strategies are an important tool in assessing overall housing demand. They inform decisions on the requirements for zoned and serviced land within development plans. The issue of those falling below affordable housing thresholds, has implications for local authorities' social and affordable housing programmes and the assessment of the contribution required from developers under part V of the Planning and Development Acts 2000-2004. In developing this approach, account has to be taken of the likely level of housing at affordable levels to be produced by the private market within the area of the plan.

Five-year action plans for social and affordable housing programmes have been developed by local authorities, at the request of my Department, in order to ensure that available resources are used to best effect in responding to the broad range of housing needs. Investment in housing in 2005 will be €2 billion, about double the level of spending in 2000. This will further increase the output of social and affordable housing. It is anticipated that the needs of in excess of 13,000 households will be met through various social and affordable housing measures in 2005. In addition, it is anticipated that a number of households currently in private rented accommodation will transfer to the new rental accommodation scheme now being introduced. These households will continue to be mainly accommodated within the private rented sector.

The Government is giving careful consideration to the broad range of issues raised by NESC and will consider whatever changes are required to better focus our efforts.