Barry Cowen (Offaly, Fianna Fail)
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1297. To ask the Minister for Housing, Planning, Community and Local Government his plans to incentivise the development of build to rent units to expand supply in the private rental market. [33998/17]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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In October 2016, my Department issued Circular APH 5/2016 to local authorities, requesting them to prioritise Build-to-Rent (BTR) projects coming forward from housing providers for consideration in their areas and emphasising the critical role that such projects can play in addressing the current acute shortage of rental accommodation. Local authorities were also requested to consider the use of lands in their ownership for such projects and were invited to put forward proposals to my Department for consideration in that regard.

The circular also provided clarity on the planning issues related to such BTR development schemes including on appropriate housing types and locations, management arrangements, Part V requirements, amenities, car parking, etc. Specific amendments were also made in the circular to the Design Standards for New Apartment Guidelines (2015) issued under section 28 of the Planning and Development Acts 2000-16 in order to provide greater certainty for the consideration of such developments by planning authorities and An Bord Pleanála.

Earlier this year, a €35m investment in major infrastructure works was launched at Cherrywood, Dublin, representing a first step towards the delivery of over 1,300 new build-to-rent homes on this key Dublin site, that will supply 8,000 new homes in total when fully complete.

As set out in the Strategy for the Rental Sector, the commitment to affordable rental is now focused on kick-starting supply in Rent Pressure Zones (RPZs) by using publicly-owned lands. It is intended that lands held by local authorities in RPZs will be brought to market on a competitive tendering basis, with a view to getting affordable rental developments underway. Two local authorities have made important early progress in this regard – South Dublin County Council and Dublin City Council have recently brought sites to the market for development as part of a joint venture with private investors.

My Department is also chairing a working group on Construction Costs to provide a strong evidential basis for consideration of any policy issues that may need to be addressed in relation to housing viability, including in relation to ‘build to rent’ apartment developments.

In addition, my Department is participating in a working group on the tax treatment of the private rental sector, set up under the Rental Strategy and chaired by the Department of Finance.  The Working Group has recently completed a public consultation and is expected to report to the Minister of Finance by the end of July on potential changes to the tax and fiscal treatment of the rental sector aimed at increasing supply.