Written answers

Wednesday, 28 June 2017

Department of Housing, Planning, Community and Local Government

Social and Affordable Housing

Photo of Barry CowenBarry Cowen (Offaly, Fianna Fail)
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297. To ask the Minister for Housing, Planning, Community and Local Government the statutory or legislative definition of affordable housing used by his Department. [30250/17]

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael)
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Under the 1999 Affordable Housing Scheme, which is no longer in operation, eligibility was determined on the basis that applicants were in need of housing and could not afford to purchase a house outright on the open market. The income limits under the 1999 Scheme were revised on a number of occasions and in 2010 the annual income limit for a single income household was €40,000, while the annual limit for a two income household was €100,000, using the formula of 2½ times the main income plus once the secondary income.

Applicants for affordable housing under Part V of the Planning and Development Act 2000 satisfied the income eligibility requirement if the mortgage repayments for suitable accommodation available in the market would exceed 35% of their net income.  

The Government recognises the  housing affordability pressures in certain areas and is determined to see  increases in the supply of high quality social and affordable homes, to buy or rent, as quickly as possible, particularly in the major urban areas where demand is greatest. This is one of the issues I will be considering in the context of the recently announced  review of Rebuilding Ireland, one year on from its publication, with an emphasis on building on the progress made, strengthening the measures already in place and identifying new initiatives that add value and raise ambition.

As part of the review process, my Department will focus in particular on the broad issue of housing affordability, building on the measures already being advanced. In this context, my Department intends to consult with local authorities and other key stakeholders in the coming weeks, as part of the broader review process.

At a strategic level, under the new 20-year National Planning Framework, there will be an emphasis on managing and utilising State lands to deliver housing and to ensure an active and healthy market for development land. In this regard, an important policy intervention in the delivery of new housing supply under Pillar 3 of Rebuilding Ireland is the development of State-owned lands for mixed-tenure housing, particularly in the major urban areas, where demand is greatest. On 27 April 2017, details of some 2,000 hectares of land in public ownership were published, with the potential to deliver up to 50,000 homes nationally. In practical terms, the development of sites such as these will mean accelerating social housing delivery and securing more homes for sale and rent at lower and more affordable price points.

Rebuilding Ireland also commits to the introduction of an affordable rental scheme to enhance the provision of affordable accommodation for households currently paying a disproportionate amount of disposable income on rent. As set out in the Strategy for the Rental Sector, this commitment is now to be progressed through kick-starting supply in rent pressure zones.  Lands held by local authorities in such zones are to be brought to market on a competitive tendering basis, with a view to leveraging the value of the land to deliver the optimum number of units for rent, and in particular targeting middle-income households, in mixed-tenure developments.

The question of the criteria to apply to determine eligibility for affordable units is currently under consideration.

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