Duncan Smith (Dublin Fingal, Labour)
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295. To ask the Minister for Housing, Planning, and Local Government the up-to-date position with regard to a development (details supplied) in south County Kildare; when it is expected to open; and if he will make a statement on the matter. [17484/22]

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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The project that the Question refers to is a significant initiative which will support communities, and create exciting opportunities for recreation and ways to experience interesting places from new perspectives.

Waterways Ireland obtained planning permission for the Project, a 46 kilometre stretch from Lowtown to Athy, including the canal side works and the roadside works. Work commenced on site in the late summer of 2020 with completion of works by Waterways Ireland expected in late 2022.

To date, Waterways Ireland has completed 20.2km of the canal side works, which equates to 55% of the towpath to be developed. A further 5.6km are nearing completion and in Q2 2022 it is scheduled to commence the section from Athy to Milltown Bridge in south County Kildare.

Kildare County Council is the Project Manager for the Project and is responsible for overall project delivery. Project updates are published regularly by Kildare County Council on its website.

Seán Sherlock (Cork East, Labour)
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296. To ask the Minister for Housing, Planning, and Local Government if he will report on the Housing for All support for 4,000 affordable purchase homes on average each year. [17524/22]

Seán Sherlock (Cork East, Labour)
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297. To ask the Minister for Housing, Planning, and Local Government if he will report on the Housing for All new local authority led affordable purchase scheme targeting average prices of €250,000. [17525/22]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I propose to take Questions Nos. 296 and 297 together.

The Housing for All Strategy delivers on the Programme for Government commitment to step up housing supply and put affordability at the heart of the housing system, with an ambitious target of 300,000 homes over the next decade for social, affordable and cost rental, private rental and private ownership housing.

Measures to deliver this housing are supported by over €4 billion in funding annually, representing the highest ever level of Government investment in building social and affordable housing. 54,000 affordable home interventions will be delivered between now and 2030 to be facilitated by local authorities, Approved Housing Bodies, the Land Development Agency (LDA) and through a strategic partnership between the State and retail banks.

Delivery of affordable housing, in accordance with the schemes set out in the Affordable Housing Act, 2021 and the funding being made available, will be underpinned by local authorities' Housing Delivery Action Plans. Local authorities submitted their Plans to me in December 2021. Preparation of these Plans allowed each local authority to assess the level of demand with affordability constraint in their area based on the Housing Need and Demand Assessment and plan provision accordingly. The Plans are being revised and updated by local authorities in the light of ongoing engagement and clarifications, and I expect that they will be ready for publication by local authorities before the Summer. They will provide a comprehensive overview of projected delivery of affordable housing nationally.

Funding is being made available by Government to assist local authority of affordable housing delivery, for purchase and rent, through the Affordable Housing Fund, and Approved Housing Body delivery and the Cost Rental Equity Loan.

The first local authority affordable purchase homes to be completed will be at Boherboy Road in Cork City next month, where 22 two and three-bed dwellings are expected to be delivered at discounts of up to 20% on market value. These homes will range in price from €218,000 to €243,000.

Affordable purchase homes will also be delivered at Dun Emer in Lusk, Co Dublin by Fingal County Council in three phases this year. These two and three bed dwellings are expected to be delivered at an average discount of 25% on market values, ranging in price from €166,000 to €258,000. In addition, South Dublin County Council recently advertised 16 affordable purchase homes in Kilcarbery, all to be delivered this year, that will cost between €245,600 and €285,300.

The LDA has an immediate focus on managing the State’s owned lands to develop new homes, and regenerate under-utilised sites. In the longer-term, it will assemble strategic land-banks from a mix of public and private lands, making these available for housing in a controlled manner, which brings essential long-term stability to the Irish housing market.

There are 7 sites that the LDA are currently engaged in which are at advanced stages of pre development with an addition three at the early stages of pre development.

The Government's Housing for All Strategy identifies a further 20 sites, in addition to the LDA's initial sites, with the potential to yield up to 15,000 units over time. These lands will transfer to LDA ownership as soon as practicable. The LDA, in consultation with the relevant Department, will undertake the process of due diligence on these lands, which will determine the appropriate residential yield for each site and other issues arising such as relocation of services.

The First Home Scheme will be delivered via a strategic partnership between the State and participating mortgage lenders and I can confirm that all parties are working with a view to deploying the scheme by the end of Quarter 2 this year. It will improve access to newly-built homes, below the median price point, by using a shared equity model to bridge the gap between mortgage finance and the cost of new homes. This measure, targeted at First Time or fresh start buyers, will allow purchasers to exit the rental market, help to build developer confidence in realisable consumer demand, and contribute to the recovery of our construction sector following the Covid-19 emergency. It will be available nationwide.

Other measures to allow buyers to access newly-constructed housing affordably such as the Help to Buy Scheme and the Local Authority Home Loan (formerly the Rebuilding Ireland Home Loan), are also available to eligible purchasers nationally to make home ownership more affordable. Information on these schemes is available at the following links: revenue.ie/en/property/help-to-buy-incentive/index.aspxandlocalauthorityhomeloan.ie/.

Seán Sherlock (Cork East, Labour)
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298. To ask the Minister for Housing, Planning, and Local Government if he will report on the Housing for All new first home shared equity scheme for private developments. [17526/22]

Gerald Nash (Louth, Labour)
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346. To ask the Minister for Housing, Planning, and Local Government if he will provide an update on the roll-out of the provision of a first home market based on the shared equity scheme as set out in Housing for All; and if he will make a statement on the matter. [18004/22]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I propose to take Questions Nos. 298 and 346 together.

The Affordable Housing Act 2021, the provisions of which I commenced in August and September 2021, laid the foundation for three new affordable housing schemes: 'Cost Rental' housing, the 'Local Authority Affordable Purchase Scheme', and the 'First Home' shared equity scheme which will support purchases in the private market.

Part 4 of the Affordable Housing Act 2021 provides the basis for the First Home Scheme, which will be available nationwide. This scheme will support eligible first-time buyers to buy a new-build home in private developments by means of an equity share model, similar to that employed in the Local Authority Affordable Purchase Scheme.

First Home will operate for the period 2022 to 2025. Subject to final approvals, it is anticipated the scheme will deploy overall funding of €400 million, jointly funded on a 50:50 basis by the State and participating mortgage lenders, in order to support 8,000 purchases of new homes. A new First Home Designated Activity Company, incorporated last December, will operate this scheme.

Significant work is continuing on the detailed design and parameters of the scheme, and full details will be confirmed upon completion of this work. Activity on key areas of work, including public communications, will be undertaken over the coming months in advance of the First Home Scheme’s first receipt of applications and deployment of equity support, anticipated from the end of Q2 this year.

Seán Sherlock (Cork East, Labour)
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299. To ask the Minister for Housing, Planning, and Local Government if he will report on the Housing for All for a reformed local authority home loan. [17527/22]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Building on the commitment in Housing for All – pillar 1 Pathway to Supporting Home Ownership and Increasing Affordability, the Regulations establishing the reformed Local Authority Home Loan were signed in December 2021.

The introduction of the Local Authority Home Loan was announced as part of Housing For All. This is the successor to the Rebuilding Ireland Home Loan Scheme. It has been available nationwide from local authorities since 4 January 2022 for people on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. The loan can be used both for new and second-hand properties, or to self-build. It is available for first-time buyers and fresh start applicants. The Local Authority Home Loan can also be used for the purchase of homes through State schemes such as the Tenant Purchase Scheme and Affordable Housing Schemes, with the exception of the First Home Scheme.

The Local Authority Home Loan assists borrowers in securing an affordable, long-term fixed rate mortgage to purchase a home of their own. The Scheme supports homeownership amongst lower to moderate income households by reducing the cost of mortgage finance and increasing the level of financing available, particularly for single applicants in urban areas.

Under the Local Authority Home Loan scheme the income ceiling for a single applicant seeking to purchase a home in counties where the scheme's house price limit is €320,000 (Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow) has been increased from €50,000 to €65,000. In the rest of the country, where the scheme’s house price limit is €250,000, the income ceiling for a single applicant will remain at €50,000. The income ceiling for joint applicants remains at €75,000.

A 'Fresh Start' principle also applies to the Local Authority Home Loans scheme. This means that people who are divorced, legally separated/separated or the relationship has ended and have no interest in, or any financial obligation for any borrowings in respect of the family home are eligible to apply under this scheme. People who have undergone personal insolvency/bankruptcy proceedings will also be eligible to apply for the Local Authority Home Loans Scheme.

Further details can be found on the following websites: revenue.ie/en/property/help-to-buy-incentive/index.aspxandlocalauthorityhomeloan.ie/.

Seán Sherlock (Cork East, Labour)
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300. To ask the Minister for Housing, Planning, and Local Government if he will report on the Housing for All owner occupier guarantee in housing developments to secure homes exclusively for first-time buyers and other owner occupiers. [17528/22]

Peter Burke (Longford-Westmeath, Fine Gael)
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Under the Housing for All strategy, the Government plans to increase the supply of housing to an average of 33,000 per year over the next decade.

Under Housing Policy Objective 1.10, of the “Supporting Homeownership and Increasing Affordability” pillar of “Housing for All”, the Government committed to introducing a form of ‘owner-occupier guarantee’, which would enable Local Authorities to specify the proportion of houses and duplexes in a development for owner-occupiers.

In support of this commitment the Government introduced a series of measures in May 2021 designed to prohibit the bulk buying of houses and duplexes. This included the Section 28 Guidelines for Planning Authorities “Regulation of Commercial Institutional Investment in Housing” to planning authorities which aimed to prevent multiple units being sold to a single buyer. In addition a 10% stamp duty levy was introduced for the cumulative purchase of 10 or more residential houses in a 12 month period. This policy was aimed at ensuring a level playing field for traditional family home buyers, including but not limited to first-time buyers, while facilitating vital investment in high density apartments.

These Section 28 Guidelines aim to provide an ‘owner-occupier’ guarantee by ensuring that new ‘own-door’ houses and duplex units in housing developments can no longer be bulk-purchased by institutional investors in a manner that causes the displacement of individual purchasers or social and affordable housing, including cost-rental.

In addition, the Planning and Development (Amendment) (Large-scale Residential Development) Act 2021 (No. 40 of 2021) came into effect on 17 December 2021. Section 7 provides that the housing strategy prepared by a local authority shall take into account the need to ensure that home ownership as a tenure type is provided for and estimated in its housing strategy. This amendment supports the implementation of Housing Policy Objective 1.10 and introduces the principle of home ownership, as a specific tenure type within a local authority’s housing strategy, with particular regard to developments comprising houses and duplexes and gives further legislative effect to the provisions of the Section 28 Guidelines issued in May 2021.

Initial data indicates that this policy has been impactful. Industry analysis suggests that, with changes made in 2021 in relation to the bulk purchase of single family residential units, the proportion of such purchases fell from 11% of residential deals in 2020 to 2% in 2021. In addition, more than 30% of the 46,000 homes purchased in 2021 were bought by first-time buyers.

As we approach one year on from the introduction of these measures, I wrote to the Chief Executives of all 31 Local Authorities and the Chairperson of An Bord Pleanála on 11 February requesting information on the number of units that have been permitted with a planning condition to prohibit multiple sales to a single purchaser arising from last year’s Section 28 Guidelines and accompanying circular, as well as any information on compliance with the conditions and enforcement.

My officials are currently collating and reviewing the data received and following this analysis, I intend publishing the data.

Seán Sherlock (Cork East, Labour)
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301. To ask the Minister for Housing, Planning, and Local Government if he will report on the Housing for All objective for 20% of all developments to be set aside for affordable and social housing. [17529/22]

Peter Burke (Longford-Westmeath, Fine Gael)
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The primary purpose of Part V of the Planning and Development Act 2000 (as amended) is to capture a portion of the increase in land value resulting from the granting of planning permission for residential development. Part V allows local authorities purchase a percentage of land at less than the enhanced market value, with such land used thereafter to deliver social and affordable housing.

In line with Government commitments, the Part V provision was increased, via the Affordable Housing Act 2021, from 10% for social housing to a mandatory 20% for social, affordable and cost rental housing requirements. The link to a specified percentage need in the Housing Strategy reflected in the Development Plan objectives was removed, ensuring the full share of the planning gain could be captured for the State on all applicable sites. The amended Part V provisions now require at least half of the planning gain to be applied to social housing provision, with the remainder to be applied to affordable housing, which can be affordable purchase, cost rental or both.

The amendments came into effect on 3 September 2021 and apply to land purchased before 2015 and on or after 1 August 2021. Transitional arrangements have also been introduced and provide that the previous 10% Part V requirement will continue to apply to extant planning permissions and land purchased between 2015 and 2021. Near term supply will not be affected by these changes; however, this will change in 2026 when the 20% Part V requirement will apply to all land.

This approach taken is balanced and fair, allowing supply to come forward at pace while also ensuring the State derives as much benefit as possible for social and affordable purposes.

Seán Sherlock (Cork East, Labour)
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302. To ask the Minister for Housing, Planning, and Local Government if he will report on the Housing for All objective for an average of 2,000 new cost rental homes each year with rents targeted at least 25% below market level. [17530/22]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Cost Rental represents a new tenure option, targeted at those people within the middle-income cohort, who do not quality for social housing but who are facing affordability pressures on the private rental market. The pipeline for Cost Rental delivery is being developed and delivery is expected to increase incrementally over the period to 2030, with the target of an average of 2,000 Cost Rental homes per year or 18,000 in total.

The introduction of Cost Rental will provide a more affordable and more secure form of long-term rental housing in Ireland. Rent levels for Cost Rental tenancies are based on the cost of the provision of homes, rather than being subject to market driven movement.

Once tenanted, rents will increase only in line with consumer inflation, remaining stable in real terms, while continuing to cover management and maintenance costs for the properties. Cost Rental schemes delivered by Approved Housing Bodies (AHBs) and local authorities will target cost-covering rents of at least 25% below comparable open market rates.

Under Housing for All, 10,000 Cost Rental homes will be delivered from 2021 to 2026 by AHBs, supported by Cost Rental Equity Loan (CREL) funding, along with funding for Local Authorities through the Affordable Housing Fund. The Land Development Agency will also deliver Cost Rental, either on its own portfolio of sites or through acquisitions under Project Tosaigh.

A Housing Delivery Action Plan prepared by each Local Authority will underpin delivery of cost rental homes to 2026. Each local authority submitted the first iteration of their plans in December and my officials have now met with each and the final Delivery Action Plans are expected to be published in Q2.

To date, funding support has been provided to deliver almost 900 Cost Rental homes. The first 65 Cost Rental homes were tenanted by the Clúid AHB in 2021, with 25 at Taylor Hill in Balbriggan and a further 40 at Barnhall Meadows in Leixlip, with funding from the CREL scheme covering up to 30% of the capital costs in each of the two developments. Both developments also delivered cost-covering rents at least 40% below comparable open market prices.

The tenanting process is currently underway for a further 44 new Cost Rental homes at the Parklands development in Citywest, also supported by CREL funding and being delivered by the Tuath AHB. Projected rents are €1,264 per month for two-bedroom apartments and €1,297 per month for two-bedroom duplexes. Tenants have been moving into a further 50 Cost Rental homes since the 14th of March 2022 at Enniskerry Road, Stepaside. These Cost Rental homes were delivered by the Tuath and Respond AHBs, in collaboration with Dún Laoghaire-Rathdown County Council. The cost-covering rent for these two-bedroom apartments is €1,200 per month, which represents a very significant discount on market prices in the area (c. €2,000).