Written answers

Tuesday, 14 November 2017

Department of Housing, Planning, and Local Government

Housing Issues

Photo of Tommy BroughanTommy Broughan (Dublin Bay North, Independent)
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512. To ask the Minister for Housing, Planning, and Local Government if his Department has been contacted by an organisation (details supplied), a union and large multinationals regarding their concerns about the housing crisis, rent availability and affordability for employees; and if he will make a statement on the matter. [47951/17]

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael)
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Through submissions received by my Department during the public consultation element of the recent review of the Rebuilding Ireland Action Plan for Housing and Homelessness, and through direct engagement with the organisations referred to in the Question, including my participation at a number of meetings of the Labour Employer Economic Forum on 4 and 27 September 2017, I am aware of the concerns raised by employer and union interests in relation to the housing supply challenge, and their support and desire to see investment plans and reforms that will improve overall housing supply, with a particular focus on increased social and affordable housing, as well as full implementation of the Rebuilding Ireland Action Plan.

For its part, the Government recognises the serious challenge we face in terms of housing which has been made a top priority through the development and implementation of Rebuilding Ireland.  The Government reinforced its commitment to delivering on housing through the allocation of very significant funding under Budget 2018.  In total, I have secured €1.9 billion for housing next year, an increase of €600 million, or 46%, on 2017. This represents an increase of 62% on the capital side to build new social homes and 35% on the current side to support homelessness, as well as supporting households into new social housing tenancies.

Looking beyond 2018, I have secured an extra €500 million for capital investment in social housing in the years 2019 to 2021, allowing the Rebuilding Ireland social housing target to be increased from 47,000 to 50,000 homes.

Under the Action Plan, we have set clear, measurable and ambitious targets to, among other things, double the annual level of new homes to 25,000 by 2020; deliver an additional 50,000 social housing units in the period to 2021; and meet the housing needs of some 87,000 households through the Housing Assistance Payment.

We are already seeing some encouraging trends and outcomes from this increased investment and focus.  Over 19,000 new social housing solutions were provided in 2016, with a further 21,000 such supports to be delivered in 2017.  Planning permissions and construction site commencements are both showing significant growth on 2016 trends, signalling that increased supply is coming on stream.

While house prices are continuing to rise, reflecting the ongoing imbalance between supply and demand, particularly in Dublin and the other urban areas where pressure is greatest, there has been some moderation in rent inflation, following the introduction of rent pressure zones earlier this year.

Notwithstanding this wide-ranging platform of action, significant challenges remain and, one year on from Rebuilding Ireland’s publication, I initiated a focused review of the Action Plan. A number of themed initiatives have already been announced as part of the review, including new and enhanced commitments in relation to social housing and homelessness, an enhanced regulatory role for the Residential Tenancies Board as well as additional legislative and other measures to strengthen the protections available to tenants and landlords to ensure a sustainable rental sector.

In relation to housing affordability, as I have previously signalled, the Government recognises the housing affordability pressures faced by many households, particularly in certain parts of the country, and as such housing affordability has been examined across a range of interconnected policy areas in the context of the ongoing focused review of Rebuilding Ireland.  This work will build on measures already in place to enable the provision of affordable homes, to buy or rent, including planning reforms, such as the fast-track planning approval process for large developments of scale; reduced and reformed development contributions; rent caps in specific Rent Pressure Zones; and further amendments to apartment planning guidelines to allow for more cost-effective and affordable apartment development for our city centres.

Budget 2018 has made provision for new funding of €25 million, to be provided over 2018 and 2019, aimed at unlocking local authority owned land specifically in order to deliver affordable housing on those sites.  My Department is currently drawing up the criteria for access to this scheme, to be announced in the coming weeks, along with further affordability measures.

I believe that this Government's commitment to tackling housing has been clearly demonstrated in terms of the delivery on Rebuilding Ireland and the resources that have been allocated.  My focus and that of all delivery agents will remain firmly on implementation and delivery to maintain and accelerate social housing delivery and wider housing output.

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