Written answers

Wednesday, 14 October 2009

Department of Environment, Heritage and Local Government

Social and Affordable Housing

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 117: To ask the Minister for the Environment, Heritage and Local Government if under the leasing initiative a lease or rent review is part of each agreement; if a review can be down as well as up; if houses acquired under the leasing initiative are required to meet a particular building energy rating standard; and if he will make a statement on the matter. [35819/09]

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The achievement of value for money is the primary focus of authorities when negotiating leasing costs and other associated terms and conditions provided for in lease agreements under the Social Housing Leasing Initiative. In normal circumstances, each lease agreement entered into will be the subject of a rent review. However, there will be some exceptions to this, including situations where, based on the discount on the current market rent obtained, an agreement is made to fix the rent for the full term of the lease. Generally, however, it is expected that each lease agreement will have a rent review in place and my Department has advised authorities that where provided for, rent reviews should follow market conditions, so that rent can be adjusted upwards or downwards.

While the new leasing initiative does not specifically require that properties achieve a minimum BER rating, it does require that all dwellings must be compliant with planning and building regulations and with the new standards regulations for rented accommodation, and a BER certificate is required to be provided for each unit of accommodation leased. In recent years, significant efforts have been made to ensure that all new dwellings are designed and built to high energy efficiency and sustainable development standards. To that end, while the leasing initiative has no specific minimum requirements on energy ratings, the initiative is designed in part to leverage the current value in the housing market due to large numbers of unsold new properties. Under the recent building regulations, it is expected that the majority of these dwellings would therefore achieve ratings of at least C3.

Overall, I am satisfied that the new Social Housing Leasing Initiative will provide quality housing to those who need it, further support the Government's objective of delivering more energy efficient social housing and deliver value for money for the State.

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