Robert Troy (Longford-Westmeath, Fianna Fail)
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149. To ask the Minister for Housing, Planning, and Local Government if he will consider pre-purchasing affordable housing units similar to social housing, and a mechanism to speed up their delivery; and if he will make a statement on the matter. [23648/23]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Housing for All, the Government’s housing plan, puts affordability at the heart of the housing system and commits to the delivery of 54,000 affordable homes by 2030. The plan can be accessed at the following link: www.gov.ie/en/publication/ef5ec-housing-for-all-a-new-housing-plan-for-ireland/#view-the-plan.

In terms of arrangements for the pre-purchase of affordable housing units, the Affordable Housing Fund (AHF) subsidy already enables local authorities to arrange for the advance purchase of housing units from private developers with a view to making these available as affordable homes for purchase or rent by eligible applicants with a demonstrable need for affordable housing. The level of subsidy available to local authorities ranges from €50,000 to €150,000 per affordable unit depending on the density of affordable units per hectare on the development and its location. In return for the subsidy, the local authority must make the homes available at a purchase price at least 15% below the market value on a shared equity basis, or at a rent targeted at 25% below the market rent.

The LDA is also deploying advance purchase arrangements to deliver affordable homes under the Project Tosaigh initiative to unlock land with full planning permission that is not being developed by private sector owners. Detailed information on its affordable homes programme can be found on the LDA’s website at: lda.ie/affordable-homes .

A strong pipeline of affordable housing delivery is in place and is under continuous development by local authorities, by Approved Housing Bodies and by the Land Development Agency.

Peadar Tóibín (Meath West, Aontú)
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150. To ask the Minister for Housing, Planning, and Local Government if his Department has undertaken a study to determine the impact building cost inflation is having on the construction of houses. [22656/23]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Construction costs have risen considerably over recent years. The CSO Wholesale Price Index shows a 12-month increase in price of construction materials of 13.5% to March 2023. The Building and Construction Index (i.e. Materials and Wages) fell by 0.1% in the month but rose by 8.5% in the 12 months to March 2023.

My Department actively monitors the housing market at all times. The impact of inflation and the uncertainties which arose as a result of Covid and then the war in Ukraine has had a real impact on housing output. This is reflected in the housing commencement figures which are published every month. My Department has also been working with all partners in dealing with the impact on inflation on social and affordable housing output to ensure that housing programmes continue to deliver.

Separately, in relation to the cost of construction more generally, on 4 May, I published the Residential Construction Cost Study report. The study found that overall construction costs using Irish specifications on a cost-per-square-metre rate for the same apartment building are broadly in line with construction costs in the four European comparator locations. A copy of the report can be accessed on my Department’s website at the following link: www.gov.ie/en/publication/2bf87-residential-construction-cost-study-report/

Housing for All and the Residential Construction Cost Study have recommended a series of actions related to modern methods of construction (MMC), standardisation and promoting MMC through public procurement which are aimed at reducing the cost of residential construction.

Government is working hard to implement these measures as priority actions, led by my Department and in collaboration with Government and Industry to help reduce the cost of construction.