Written answers

Thursday, 5 March 2015

Department of Environment, Community and Local Government

Housing Issues

Photo of Paul MurphyPaul Murphy (Dublin South West, Socialist Party)
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247. To ask the Minister for Environment, Community and Local Government the percentage of income being spent on housing costs he regards as affordable; his views on the steps the Government is taking to ensure availability of affordable housing for all households; and if he will make a statement on the matter. [9655/15]

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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As a general guide housing costs can be considered to be affordable where the payments do not, over the course of a year, exceed 35 per cent of a person's annual net income. This benchmark was used in previous affordable housing schemes and is consistent with international comparators. However, affordability for a person or household is very dependent on their individual personal circumstances. The State provides a wide range of supports to assist households in meeting their housing need ranging from income support and rent supplement, provided through the Department of Social Protection, to social housing supports provided by my Department, local authorities and approved housing bodies.

A key issue in the housing market in Ireland is under-supply and in response to the challenges facing the construction sector and, in particular, both the private and public housing sectors, the Government published Construction 2020 – a Strategy for a Renewed Construction Sectorin May 2014. My Department is the lead Department for a range of actions in Construction 2020 relating to housing and planning, including the preparation and implementation of a Social Housing Strategy.

Addressing the supply shortfall in housing will take time, but there are already positive indications. For example, new house completions in 2014 amounted to 11,016 units nationally, up 33% on the 2013 figure. Similarly, in the third quarter of 2014 planning permissions were granted for 2,144 dwelling units, compared with 1,409 units for the same period in 2013 - an increase of 52%.

Social housing is a key priority for the Government, evidenced by the additional €2.2 billion in funding announced for social housing in Budget 2015 and the publication of the Social Housing Strategy 2020in November 2014. The Strategy builds on the provisions contained in Budget 2015 and sets out clear, measurable actions and targets to increase the supply of social housing, reform delivery arrangements and meet the housing needs of all households on the housing list. Importantly, the Strategy restores the State to a central role in the provision of social housing.

The total targeted provision of over 110,000 social housing units, through the delivery of 35,000 new social housing units and meeting the housing needs of some 75,000 households through the Housing Assistance Payment and Rental Accommodation Scheme, will address the needs of the 90,000 households on the housing waiting list in full, with flexibility to meet potential future demand. In committing to provide these 35,000 new social housing units, at a projected cost of €3.8 billion, the strategy marks a fresh start for social housing in Ireland.

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