Written answers

Tuesday, 7 July 2020

Department of Housing, Planning, and Local Government

Rental Sector

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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324. To ask the Minister for Housing, Planning, and Local Government his plans to roll out cost rental housing; the way in which the allocation of these homes will work; the cost of the rents for these homes in particular the cost rental plans for the Enniskerry and Shanganagh Castle sites; and if he will make a statement on the matter. [14550/20]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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As confirmed in the Programme for Government 'Our Shared Future', this Government is committed to the introduction of Cost Rental housing in Ireland. This recognises that renters in Dublin and other major urban centres are facing significant housing access and affordability challenges. Cost Rental is a fundamentally different housing proposal and represents a new tenure option. It is defined as housing where the rents charged cover the cost of delivering, managing, and maintaining the homes only. Cost Rental is not intended to overlap with or replace traditional social housing for low-income households. In developing this model, we are informed by international experience of the delivery of cost rental, such as the ‘Vienna Model’. At the core of this work is the development of a new long-term and sustainable form of rental properties for tenants and a sustainable model for the financing, construction and management of homes.

Initial work on Cost Rental is underway and in 2019 an inter-departmental multi-agency Cost Rental Working Group was convened in order to assess methods for the consistent and sustainable delivery Cost Rental at scale. The Group brings together representatives of relevant government departments, State agencies, and local government. The Group is evaluating potential funding models, including the use of public land and appropriate Exchequer inputs. The Group is also considering operational matters such as tenant eligibility.

This work will be assisted by a recently initiated research consultancy sponsored by the European Investment Bank on behalf of my Department. The EIB has extensive experience in supporting the delivery of affordable housing across Europe. The final Report is scheduled for completion in December.

Rents for Cost Rental homes, depend upon the overall cost of each individual development, and will vary according to the site and design specifics. However, value engineering with long-term maintenance in mind can put downward pressure on costs and help to make Cost Rental more affordable for tenants. If construction is to be funded by borrowing, it is crucial that Cost Rental providers obtain low-cost, stable finance that is repaid over a long period of time.

The first Cost Rental pilot development at Enniskerry Road, Stepaside, Dún Laoghaire-Rathdown, is being undertaken by the Tuath and Respond Approved Housing Bodies, with the assistance of DLR County Council. The mixed-tenure development comprises 50 Cost Rental homes alongside 105 social housing homes. The Cost Rental homes at this site are supported by zero-cost land supplied by the Housing Agency, an infrastructure grant from my Department's Serviced Site Fund and debt financing from the Housing Finance Agency. Construction began on the site in July 2019 with delivery scheduled for Q3 2021.

The other proposed Cost Rental development referred to by the Deputy, at Shanganagh Castle, is currently in the initial planning stage with Dún Laoghaire–Rathdown County Council working in partnership with the Land Development Agency. This is utilising Council-owned land and Shanganagh is proposed as a mixed-tenure development. It is envisaged that approximately 300 Cost Rental homes will be constructed, alongside approximately 200 social housing homes and 100 homes for sale under the Affordable Purchase scheme. A planning proposal for this site was lodged with An Bord Pleanála in January 2020. While the final cost of rents will vary according to the ultimate cost of provision of the homes they are expected to be significantly lower than open market rates for the area.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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325. To ask the Minister for Housing, Planning, and Local Government his plans to provide the funds and work with Dún Laoghaire-Rathdown County Council and or an approved housing body to purchase an apartment block (details supplied) in Dún Laoghaire in which ten apartments have been empty for three years and the other apartments that have tenants were served with eviction notices; and if he will make a statement on the matter. [14551/20]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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Delivering social housing is a major priority for this Government as evidenced by the commitments made in the Programme for Government "Our Shared Future". My Department works closely with all Dublin local authorities to support them in this regard. To this end, funding is available to deliver additional social housing stock through a range of initiatives, including, where appropriate, the acquisition or leasing of new and previously owned houses/apartments from the private market.

As housing authorities, it is a matter for each local authority to determine, in the first instance, the suitability of any homes for acquisition or leasing, to meet local social housing needs. In this regard, local authorities consider a range of issues, including unit size, fostering sustainable communities and value for money.

As such, it is a matter for Dun-Laoghaire Rathdown County Council to determine, in the first instance the most appropriate response to the need for social housing supports in their area and to make the necessary application to my Department. No such application in relation to this development has been made thus far.

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