Written answers

Wednesday, 9 December 2015

Department of Environment, Community and Local Government

Housing Provision

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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200. To ask the Minister for Environment, Community and Local Government to support rent supplement and housing assistance payment limits and introduce rent certainty as short-term housing measures as advised by the National Economic and Social Council; to make better use and provide quicker turnaround of State properties and local authority voids, that are empty; to enhance prevention and early intervention measures to support persons in their homes; to explore the efficacy of modular homes, ensuring that this does not become a long-term measure; to access affordable housing with support, as a solution to the housing and homeless crisis; and if he will make a statement on the matter. [44378/15]

Photo of Alan KellyAlan Kelly (Tipperary North, Labour)
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A shortage of supply is at the heart of the current challenges in the housing sector and the Government is addressing this on a number of fronts. The Government’s Construction 2020 Strategy, published last year, is aimed at addressing issues in the property and construction sectors and ensuring that any bottlenecks that might impede the sector in meeting the estimated residential demand of 25,000 units per annum are resolved. My Department and other relevant Government Departments and agencies are actively implementing the range of commitments set out therein. In addition, NAMA is aiming to deliver a target of 20,000 residential units before the end of 2020. 90% of these units will be in the greater Dublin area, with approximately 75% of the units being starter homes.

With regard to social housing delivery, the Social Housing Strategy 2020sets out clear, measureable actions to increase the supply of social housing, reform delivery arrangements and meet the housing needs of all households on the social housing list. The Strategy has been supported by two successive budgets with €1.7 billion allocated to housing, with associated delivery targets of over 33,000 units across both Capital and Current programmes. Given the pressing need to recommence a house building programme almost €3 billion in capital funding will be provided in support of the Social Housing Strategyunder the Government’s Capital Plan - Building on Recovery: Infrastructure and Capital Investment 2016-2021.

The unprecedented support and funding being allocated to bring vacant and boarded-up social housing units back into use is a notable example of the Social Housing Strategy’s focused and realistic approach. Over 2,300 units were delivered in 2014, and I expect 2,500 units to be completed in 2015.

The implementation of the Housing Assistance Payment (HAP) scheme is a key Government priority and a major pillar of the Social Housing Strategy. There are currently more than 5,400 households in receipt of HAP and the scheme has been rolled out to all categories of household in 18 local authority areas.

The maximum rent limits for different household classes that apply in each local authority where HAP has been commenced are set out in regulations and are generally based on the Rent Supplement limits as set out by the Department of Social Protection (DSP). In prescribing these limits, household size and prevailing rents in the relevant areas are taken into consideration. My Department works closely with the Department of Social Protection and monitors data which it gathers, along with PRTB data, and data gathered through HAP pilot authorities, in relation to the rent limits applying. This matter will be kept under active review in all HAP pilot authority areas.

On 10 November 2015, Government approval was given to a package of measures to address rent stability and housing supply. The measures will act to stabilise rents in the short to medium term while the additional supply of housing comes on stream. In relation to rent stability, the measures were given effect by the Residential Tenancies (Amendment) Act 2015, enacted on 4 December 2015. This Act provides, inter alia, that the minimum period between rent reviews for tenancies is being increased from 12 to 24 months and this new provision will apply for a 4 year period. In addition, the minimum period of notice of new rent is increased from 28 days to 90 days and longer notice periods for the termination of long-term tenancies have been introduced. Each of these new provisions commenced on enactment.

Further amendments in the Act regarding rent and tenancies will be the subject of commencement orders. Details of the full package of new rent stability and housing supply measures are available at the following link:

With regard to modular housing provision, this programme of 500 units is being implemented to mitigate the issues associated with an increasing volume of homeless families accommodated in inappropriate commercial hotel arrangements. These units will provide emergency accommodation in the first instance, with each unit providing accommodation for a single household at a given time. While the placement of individual households in these units is intended to be on a short term basis, such placements will offer a greater level of stability than is possible in hotel accommodation, while move-on options to long-term independent living are identified and secured. Furthermore, such arrangements will facilitate more coordinated needs assessment and support planning for access to all required services, including welfare, health and housing services.

Cognisant of the difficulty faced by households in accessing the housing market, Budget 2016 provided for an affordable rental pilot scheme, with €10 million being made available from the proceeds of the sale of Bord Gáis Éireann to fund a pilot in 2016. The Scheme will be an on-going annual commitment to secure a long term increase in the supply of affordable properties to meet the needs of those households that would struggle to make rental payments under present market conditions. Details of the Scheme are currently being finalised in my Department and will be completed by end-year, for rollout in early 2016.

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