Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 61: To ask the Minister for the Environment, Heritage and Local Government his views on the analysis in the NESC report on housing which concluded that up to a third of all new households formed in the period 2001-2006 would fall below the housing affordability threshold, details supplied. [36588/05]

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 the 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, estimated 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 the 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.

The NESC suggested that the methodology in the housing strategies for estimating affordability problems and experience in using them will improve as local authorities review and update their strategies. 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 covering the period to 2008 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. A mid-term review of plans will be undertaken next year which will allow for adjustments to be made in light of actual performance and any new housing policy initiatives arising in the interim.

Investment in housing in 2006 will be €2 billion, more than double the investment as recently as 2000. This will further increase the output of social and affordable housing. It is anticipated that support for affordable housing measures should lead to the needs of some 12,000 new households being met between 2005 and 2007. The Government is giving careful consideration to the broad range of issues raised by the NESC and will consider whatever changes are required to better focus its efforts. We have already established the affordable homes partnership to drive and co-ordinate the delivery of affordable housing in the greater Dublin area. A new statement of housing policy will be issued soon.