Catherine Murphy (Kildare North, Social Democrats)
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285. To ask the Minister for Housing, Planning, Community and Local Government his plans for persons that purchased starter homes and have now outgrown them due to family size; the measures being considered; and if he will make a statement on the matter. [17469/17]

Simon Coveney (Cork South Central, Fine Gael)
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The Government's Rebuilding Ireland Action Plan for Housing and Homelessness (July 2016), which is available at the following link,, is focused on increasing supply, across all tenures, to achieve total housing output of at least 25,000 homes per year by 2021 and beyond, effectively doubling the output of 12,600 homes recorded in 2015.

While still at an early stage of implementation, there is already strong evidence that the focus on increasing and accelerating housing supply in Rebuilding Ireland is starting to work. The latest residential commencements and completions data show that house-building activity is continuing to strengthen. Completions for the 12-month period to end January 2017 stood at 15,256 homes, an 18% increase year on year. Likewise, commencement notices for 13,334 new homes were submitted in the twelve month period to end January 2017, up 44% year on year. 

Importantly, at the end of 2016, there were 144 active sites in the Dublin region, which will deliver approximately 5,500 new homes. My expectation is that some 18,000 homes will be completed nationally this year.

While increasing supply, we also want to increase choice for all segments of the housing system including, inter alia, first-time buyers, renters, students, older people and indeed expanding families wishing to trade up. The various housing segments are of course interlinked and interactive.

An important feature of the new supply is the development of key State-owned sites in the major urban areas, where demand is greatest. The Dublin local authorities are all well advanced in bringing large-scale sites forward for mixed tenure housing with projects advancing that can deliver circa 3,000 mixed tenure homes in Dublin. The final model for each site is the subject of careful consideration by the local authority concerned, the elected members included, who are best placed to know and provide for the housing need in their area.

In bringing proposals forward, local authorities are cognisant of the need to provide housing across the spectrum. In this regard, in providing more choice for older people, perhaps living alone, to trade down to a more manageable sized home, this should provide more opportunities for those families seeking to trade up to larger homes. My Department is actively engaging with local authorities bringing forward such proposals.

Identification and development of key sites in the major urban areas where demand is greatest and the recent announcement of €226 million of enabling infrastructure investment to facilitate construction of some 23,000 homes by 2021 are further initiatives that will significantly boost supply.

In addition, to reduce the risk and impact of future housing cycles, under Pillar 4 of Rebuilding Ireland I published the Strategy for the Rental Sector (December 2016) to promote a well-developed rental market as a genuine alternative to ownership. While many households may continue to strive to buy rather than rent, I want to ensure that a real option to rent exists. A more developed rental market will also help moderate the property cycle and reduce household exposure to house price fluctuations.

The Government has also taken a number of steps to assist homeowners who wish to 'up-size' from the starter home they purchased but find themselves in negative equity. In appropriate cases, the Central Bank is allowing banks to provide new mortgages to people to move home, even if the homeowner is currently experiencing negative equity. In addition, housing loans for borrowers in negative equity, who wish to obtain a mortgage for a new property, are not included within the scope of the LTV limits.

Through the range of actions currently being progressed through Rebuilding Ireland to increase the supply of homes across all tenures, the Government has created the conditions required for the restoration of a more sustainable and normally functioning housing market, capable of providing homes, at affordable price points to buy or rent, where and when they are needed for all segments of the housing system.