Edward Timmins (Wicklow, Fine Gael)
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16. To ask the Minister for Finance the measures that can be taken to encourage the banks to lend to small- and medium-sized property developers for housing construction. [27985/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I thank the Deputy for the question.

As you are aware, this Government is committed to meeting the needs of our society by building more homes, of all tenure types, across the country. Embedding a sustainable property industry in Ireland is also an important factor in maintaining our economic development and growth.

Last year, Government approved new national housing targets, aiming to deliver 303,000 new homes up to the 2030. Developing these homes will require significant levels of capital finance. A report published by my Department last year estimated that €20 billion of development funding on average will be needed to build 50,000 homes annually. While the Government is investing unprecedented amounts in housing, over €6 billion this year, clearly, we cannot rely on only public funds to hit these targets.

This development funding must come from a diverse range of sources and will comprise both debt and equity across the capital stack. The domestic banks which provide development finance will continue to play a vital role in supporting our homebuilders. The banks have committed to increase the funding they are making available for housing development over the coming years, which will play a major part in ensuring we meet our housing supply targets.

That same report also found that while there is overall a strong level of debt finance available there are segments of the market where viability is an issue and therefore there is constrained access to finance for these segments.

The Government is committed to addressing these areas with initiatives like Home Building Finance Ireland (HBFI), which has approved over €2.7 billion of loans to homebuilders since its inception which equates to funding for over 13,000 homes. The Ireland Strategic Investment Fund also deploys significant investment across residential development, urban regeneration, real estate and infrastructure. investments by ISIF act as a bridge between the State and the private market in financing the delivery of new housing, by crowding in private capital alongside State investment.

To address the viability of apartment building, we introduced schemes like Croí Cónaithe and Secure Tenancy Affordable Rental investment scheme (STAR). Looking ahead, initiatives like the revised National Planning Framework and the new Planning and Development Act will help with the viability of projects and enable acceleration in our house building.

I will continue to work with my colleagues across Government to support the delivery of new homes of all tenure types for people across the country, including any necessary engagement with banks in relation to their role in providing funding for residential development.