Written answers

Tuesday, 24 May 2016

Department of Environment, Community and Local Government

Social and Affordable Housing Provision

Photo of Eoin Ó BroinEoin Ó Broin (Dublin Mid West, Sinn Fein)
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52. To ask the Minister for Environment, Community and Local Government why responsibility for delivering 80% of social housing, as outlined in Social Housing Strategy 2020, is being handed over to the private sector; and if he will review this policy. [11596/16]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The private rental sector has grown to become a major component of the housing market, meeting the accommodation needs of approximately 320,000 or one-fifth of all households in the State. Close to one-third of households living in the sector are in receipt of housing support in the form of rent supplement or other State support and, as such , the sector is also of key importance for the provision of social housing. This is recognised in the Social Housing Strategy 2020 goal to meet the needs of 75,000 households in the sector, primarily through the Housing Assistance Payment (HAP) scheme. Under the Strategy, the State will also take measures to enhance the capacity of the sector to contribute in a more sustainable and cost effective way to deliver social housing supports.

A particular application of this is the roll-out of HAP on a phased basis to all local authority areas. HAP is currently operational in 19 local authority areas with more than 9,000 households currently in receipt of housing support under the scheme. The scheme provides for a better integrated and more streamlined service for households seeking support from the State and gives local authorities greater flexibility to provide assistance to those in need of social housing support. HAP provides a stronger and more secure form of State housing support in the private rental sector.

HAP also provides households with the opportunity to move to other forms of social housing as they become available, by accessing the local authority transfer list. The scheme also avoids a potential poverty trap and incentivises people to work, by providing for recipients to work full-time but to retain benefits.

The Government also recognises that, in order to meet the housing needs of varying household types, more options beyond full State social housing or full private home ownership or rental are required. In that regard, the Programme for a Partnership Government commits to delivering an Affordable Rental pilot scheme within the first 100 days of this Government. The scheme, which will be a priority for delivery under the ‘Action Plan for Housing’ being prepared by the Government, is currently being developed in my Department.

€10m has been made available for the scheme in 2016. This is to be an on-going annual commitment to secure a long term increase in the supply of housing for affordable rental. The scheme is expected to work on the basis of tenants paying the majority of the rental cost from their own resources, with the State helping to meet the shortfall. It is intended that the scheme would be made available to employed households on low to moderate incomes.

With regard to the operation of the private rental sector more generally, the Residential Tenancies (Amendment) Act 2015 introduced a series of major reforms to the private rental sector in Ireland, by providing rent certainty and safeguards for both tenants and landlords. My intention is to build on that, by developing a national policy for the private rented sector to support the creation of a vibrant sector underpinned by greater security of tenure, a more stable investment framework and measures to support greater supply in key demand areas.

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