Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

326. To ask the Minister for Housing, Planning, and Local Government the average price of a house deemed to be in the affordable category; the number built, acquired or under construction at present throughout the country; and if he will make a statement on the matter. [3553/22]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Affordable Housing Act 2021, the first ever standalone affordable housing legislation, established a basis for four new affordable housing measures. These measures will deliver on the Programme for Government commitment to put affordability at the heart of the housing system and prioritise the increased supply of affordable homes through (1) delivering affordable homes on local authority lands, (2) the introduction of a new form of tenure in Cost Rental, (3) a First Home shared equity scheme and (4) expanding Part V planning requirements to increase the 10% contribution requirement to 20% and to apply it to cost rental as well as social and affordable housing.

This Act, supported by the unprecedented levels of funding committed to in the Housing for All strategy, averaging over €4 billion annually, will underpin the delivery of affordable housing targets. Specifically, 54,000 affordable homes will be delivered between now and 2030 by local authorities, Approved Housing Bodies, the Land Development Agency and through a strategic partnership between the State and retail banks.

In terms of house prices, defining affordability is not simply a question of ‘how much is too much?’, and may be better answered by asking ‘how much is too much for whom and in what circumstance?’. This is why the schemes in the Affordable Housing Act provide for a household specific assessment of affordability.

Under the provisions of the Affordable Housing Act, each household's capacity to purchase a modest home relative to the regional market will be considered. Where households are deemed not to be able purchase a home at its cost on the private market, support to bridge the shortfall may be made available through two separate affordable purchase schemes. More specifically, first-time buyers purchasing new homes will be supported by a bridging of the gap between the market value of the home and the combined value of the buyer's mortgage and deposit.

It is anticipated that the first affordable purchase homes under the Local Authority Affordable Purchase Scheme will be made available in Cork in February. Cork City Council indicated the prices to be €218,000 for a 2-bedroom and €243,000 for a 3-bedroom dwelling. This will be followed by a Fingal County Council supported affordable purchase development (Dun Emer). Fingal County Council have indicated these will cost €166,000 for a 2-bed apartment and between €206,000 and €258,000 for 3-bed dwellings.

Separately, as part of Housing for All, additional funding of €1bn was committed to the Land Development Agency in order for it to deliver on its pipeline of housing. This includes Project Tosaigh under which the LDA will enter into forward purchase arrangements to kick-start stalled private developments and increase the supply of affordable housing. The LDA initiated a call on 12 November 2021 targeting a scale in excess of 150 affordable units per development and is currently assessing the proposals received.

Similarly, the Housing Delivery Coordination Office (within the LGMA) issued a call to secure additional affordable homes across 14 local authorities with the most acute affordability constraint. This call is also focused on stalled private developments but targets smaller scale developments than the LDA initiative.

Part 3 of the Affordable Housing Act provided for the establishment of a Cost Rental sector in Ireland. Despite the impacts of Covid-19, 65 Cost Rental homes were tenanted in 2021 (25 in Balbriggan Co, Dublin, and 40 in Leixlip Co. Kildare). Over 700 Cost Rental homes will be delivered by Approved Housing Bodies in 2022, with more to be delivered by the LDA.

The First Home shared equity scheme, under Part 4 of the Affordable Housing Act, will primarily support first-time buyers purchasing newly constructed homes on the private market. This scheme will be available at a national level and will incorporate regional price caps based on median house price sales. A Designated Activity Company to operate this scheme was incorporated last December. Confirmation of the final details of this scheme is ongoing in conjunction with the relevant stakeholders and it is anticipated that the First Home scheme will be available for applications in Q2 of this year.

In addition to these schemes, several affordability measures which promote housing supply, such as the Help-to-Buy scheme continue to be made available to eligible applicants. The Help-to-Buy incentive supports first-time buyers in meeting the deposit requirements for newly-built houses or apartments, as well as self-build homes. Subject to the level of income tax and DIRT paid over the previous 4 years, the Help-to-Buy scheme provides a maximum benefit to first-time buyers of €30,000 or 10% of the cost of the newly constructed home. The Help-to-Buy scheme has already helped over 22,000 first-time buyers achieve the deposit required for a new home. Budget 2022confirmed an extension to the Help-to-Buy scheme up to 2022 and committed to undertake a full review of the scheme.

Finally, the new Local Authority Home Loan scheme commenced on 4 January 2022 as a successor to the Rebuilding Ireland Home Loan. This scheme incorporates a lower interest rate, higher income eligibility and more flexible home size requirements than previously applied.

Our multi-faceted approach to housing delivery will see greatly increased supply which we recognise is key to addressing inflationary pressures. Our measures will improve affordability for all families or individuals across society wishing to secure a home.