Written answers

Tuesday, 28 June 2005

Department of Environment, Heritage and Local Government

House Prices

10:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 837: To ask the Minister for the Environment, Heritage and Local Government the reason no action has been taken in the past seven years to address the housing crisis which has now reached unprecedented proportions; and if he will make a statement on the matter. [22783/05]

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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The Government's overall housing strategy is to increase housing supply to meet demand and to improve affordability, particularly for first-time buyers. A range of measures implemented by the Government has focused on increasing the supply of residential land through investment in infrastructure, using land more effectively through higher residential densities and the introduction of a range of measures to expand the capacity of the planning system. Arising from this strategy, 2004 was a further record year for house completions, which totalled 76,954, an increase of 11.8% on 2003. Approximately 500,000 houses have been built over the past ten years, representing over 30% of the Irish housing stock.

This increased supply, supported by Government measures, means the market is supplying houses in many parts of the country at affordable prices. In addition to measures to support a market response to the unprecedented demand, a range of targeted affordable housing measures has been promoted by the Government. We announced further measures last week to accelerate the delivery of affordable housing. These included the establishment of the affordable housing partnership and the advancement of AHI projects on a number of sites through land swaps.

As part of the broader delivery of housing nationally, all local authorities will review their land management strategies to maximize the availability of land for their own housing programmes, voluntary and co-operative housing, housing partnerships with the private sector and to secure more active use of brownfield land and derelict sites.

The Government has also responded actively to increased levels of social housing need by expanding social and affordable housing output. In the current year, the Government is allocating record levels of funding to local authorities for their social and affordable housing programmes. The total Exchequer capital and current funding available for social and affordable housing in 2005 will amount to €1.3 billion which represents an increase of 20% on 2004. Total capital spending on social and affordable housing output in 2005, inclusive of non-Exchequer financing, will amount to almost €2 billion.

In order to ensure a systematic and integrated approach to the use of these resources, local authorities have, at my Department's request, developed new five-year action plans for social and affordable housing. I believe that the preparation of these plans will sharpen the identification of priority needs, and help to ensure a more coherent and co-ordinated response across all housing services, including those to be provided by the voluntary and co-operative housing sector. My Department is giving strong encouragement to local authorities to press ahead with the implementation of these action plans, which are being underpinned by very substantial levels of Government funding. To underpin the multi-annual approach in the action plans I have secured financial envelopes for the next five years.

Since 1997 the needs of 86,000 households have been met, taking account of local authority housing, vacancies arising in existing houses and output under both social and affordable housing measures. Overall, in 2005, it is anticipated that the needs of in excess of 13,000 households will be met through the same measures. 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 accommodated mainly within the private rented sector.

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