Written answers

Tuesday, 21 March 2017

Department of Housing, Planning, Community and Local Government

Housing Data

Photo of Noel RockNoel Rock (Dublin North West, Fine Gael)
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467. To ask the Minister for Housing, Planning, Community and Local Government his views on the fact that only 4.6 % of households spend more than 40% of their disposable income on housing, which is the fourth lowest in the EU; and if he will make a statement on the matter. [13972/17]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I note the Eurostat statistic referred to by the Deputy.

As the Deputy will be aware, a range of measures are being taken under the Rebuilding Ireland Action Plan for Housing and Homelessnessto increase housing supply overall, with the aim of creating a functioning and sustainable housing system which can meet housing demand at more affordable prices.

The plan is divided into five pillars, with each targeting a specific area of the housing system.

Under Pillar 2 (Accelerate Social Housing) the target is very clear – 47,000 new social housing homes to be delivered by 2021 at a cost of €5.35 billion. Local authorities have a strong pipe-line of approved projects in place, with targets agreed to end 2017. My Department is already working with local authorities to agree post-2017 targets, to ensure a continued pipeline of developments to the end of the 6-year Action Plan period.

Pillar 3, entitled Build More Homes, has a key objective of increasing the output of private housing to meet demand at affordable prices, including by:-

- Opening up land supply and State lands, including the Major Urban Housing Development Sites initiative, which identified large-scale sites in the main cities that are capable of delivering significant homes in the short to medium term to boost overall housing supply;

- €200 million Local Infrastructure Housing Activation Fund;

- National Treasury Management Agency financing of large-scale “on-site” infrastructure;

- Planning Reforms;

- Putting in place a National Planning Framework and land management actions;

- Efficient design and delivery methods to lower housing delivery costs;

- Measures to support construction innovation and skills.

Pillar 4 of the Plan, entitled Improve the Rental Sector, provided for the introduction of an affordable rental scheme to enhance the capacity of the private rented sector to provide quality and affordable accommodation for households currently paying a disproportionate amount of disposable income on rent. As set out in the recently published Strategy for the Rental Sector, this commitment is now being progressed through kick-starting supply in rent pressure zones.

Other measures taken to increase the supply of housing include -

-The enhanced supply of more affordable starter homes in key locations through a targeted rebate of development contributions in Dublin and Cork for housing supplied under certain price levels;

- New National Apartment Planning Guidelines, reducing the cost of apartment building;

- Changes to aspects of the operation of Strategic Development Zones to enable swifter adjustments to meet market requirements;

- A vacant sites levy.

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