Martin Heydon (Kildare South, Fine Gael)
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52. To ask the Minister for Housing, Planning, and Local Government his plans to address the shortage of affordable homes in many parts of the country for young persons, couples and families that wish to live in their local areas; and if he will make a statement on the matter. [9698/18]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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The Government acknowledges the affordability pressures faced by some households with low to moderate incomes in particular parts of the country. It is precisely for that reason that the Rebuilding Ireland Action Plan for Housing and Homelessnesshas prioritised the supply of new and more affordable homes. Importantly, all housing construction activity indicators are moving in the right direction, showing that the focus on increasing and accelerating housing supply is working.

Recognising that initiatives introduced to date are having an impact and will have a greater impact in time, I announced last month a package of initiatives to help alleviate affordability pressures faced by households, particularly in areas of high housing demand and high accommodation costs. The measures announced were the new Rebuilding Ireland Home Loan, a new Affordable Purchase Scheme and a new Affordable Cost Rental Scheme. Further details on this suite of initiatives are available on the rebuildingireland.ie website.

The new affordable purchase scheme will be governed by the relevant provisions of the Housing (Miscellaneous Provisions) Act 2009 which will be commenced shortly. Once the relevant provisions are commenced, I will develop, in consultation with the Housing Agency and local authorities, detailed Regulations covering the operation of the Scheme, including eligibility criteria.

In order to kick-start the delivery of affordable homes, I am providing Exchequer funding of €25 million, over 2018 and 2019, for a targeted programme, under which local authorities will make low-cost serviced sites available for affordable housing, working with Approved Housing Bodies or co-operative housing associations as appropriate.

A pilot project on the cost rental initiative is currently being progressed in Dún Laoghaire-Rathdown County Council, in conjunction with the Housing Agency and Approved Housing Bodies, using publicly-owned land. I expect this pilot to go to the market later this year to secure a development partner and the best value for the State and prospective qualifying renters.

I anticipate that there is significant potential for the delivery of affordable homes on local authority lands. Following on from the Housing Summit on 22 January, I have asked local authority Chief Executives to submit in early March an outline of their respective affordable housing programmes.

Eamon Ryan (Dublin Bay South, Green Party)
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53. To ask the Minister for Housing, Planning, and Local Government his plans for provision of housing delivered through the cost rental model. [9714/18]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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Against the background of the affordability pressures which exist in the rental market, particularly in certain areas, the Government is determined to make affordable or cost rental a major part of the Irish housing system.

Under this approach, rents are set at levels to recover the construction costs and to facilitate the management and administration of developments, but with only a minimal profit margin included. To this end, I announced last month a suite of affordable housing initiatives, including a new affordable rental scheme, to be based on a cost rental model.  Further details on the suite of initiatives involved are available on my Department's website at the following link: .

A pilot cost rental project is currently being progressed by Dún Laoghaire-Rathdown County Council, in conjunction with the Housing Agency and Approved Housing Bodies, using land owned by the Agency. I expect this pilot to go to the market later this year to secure a development partner and the best value for both the State and prospective renters.

To deliver more affordable homes, the State must develop the full potential of its residential land bank. I stressed this to local authority Chief Executives at the Housing Summit on 22 January and asked them to submit, by early March, an outline of their respective affordable housing programmes. I expect further affordable rental proposals, based on the cost rental model, to be put forward by local authorities, especially those in the main urban centres, as part of this process.

In parallel, discussions are ongoing with the European Investment Bank regarding their experiences in developing and supporting cost rental and other affordable models that could also work in Ireland.