Barry Cowen (Offaly, Fianna Fail)
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27. To ask the Minister for Housing, Planning, Community and Local Government his plans to introduce an affordable rental scheme to subsidise rents for low to middle income households in employment; the reasons his Department decided not to use the €10 million allocated in budget 2016 for a pilot scheme for this purpose. [33405/17]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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Action 4.6 of the Rebuilding Ireland Action Plan 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.  Provision was made for €10 million per annum to be allocated through my Department’s Vote for that purpose.

As set out in the Strategy for the Rental Sector, published in December 2016, the commitment to develop an affordable rental model 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.  This is intended to allow the rental units to be made available at below market prices without the need for ongoing rental subsidies.

Accordingly, the provision of €10 million earmarked for the affordable rental scheme is being redirected to support additional activity under other housing programmes within my Department.

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.  I have asked all local authorities to be innovative and proactive in developing these sites. The final model for each site, including the affordable rental element, will be the subject of careful consideration by the local authority concerned, including by the elected members, who are best placed to know and provide for the housing need in their area.  My Department is considering, in conjunction with local authorities, what national and/or local requirements should be specified in relation to eligibility.

I am also considering further initiatives and actions to address the issue of affordability in the context of the targeted review of Rebuilding Ireland which my Department has now commenced.