I very much welcome this opportunity to focus attention on the important issue of social housing. Decent housing for all our people is a basic concern of Government. Each and every family is profoundly concerned about, and influenced by, the quality of its housing. Accordingly, it is appropriate that Deputies should have the opportunity to consider and debate the Government's policy set out in the document Social Housing — The Way Ahead.
Housing is the key determinant of many of our attitudes, our capabilities and our life choices. People cannot develop properly if their housing conditions cause them difficulty, anguish or distress. Relationships suffer in the absence of decent housing and those who are marginalised will remain so if we do not enable them to enjoy housing conditions appropriate to their needs.
Housing, therefore, is one of the priorities of this Government. Our special commitment to the social housing area was written into the Government's policy document “A Government of Renewal” with the undertaking to increase social housing starts to 7,000 annually. This was a significant commitment when one considers that there were fewer than 3,000 starts under the social housing programme as recently as 1992. We are well on our way to delivering on this commitment of 7,000 starts this year. Overall, and including vacancies in the existing local authority housing stock, we expect to cater for some 9,500 households in housing need in 1995 rising to over 10,000 next year, compared to just 6,000 households in 1992.
There has been an enormous increase in recent years in the financial resources directed to the social housing programme. Capital funding for social housing in 1995 amounts to some £286 million compared to £226 in 1994 and £148 million in 1993. The sum of £286 million is enormous, and in this context I would like to refer briefly to a recent assertion that the cost to the housing budget of introducing divorce would be £135 million. This is simply scremongering. Marital breakdown is already a significant factor in housing need. Divorce, and the giving of what I consider a basic human right of a second chance, will not increase the rate of marriage breakdown. Indeed it may well serve to assist marriage where second unions exist. To argue that divorce will increase Government expenditure on housing is untrue. It is further evidence of the alarmist and misleading approach of the No Divorce Campaign that this argument is being used. I can assure this House that voting "yes" for the amendment will not lead to additional demands on the housing budget.
I also emphasise that the provision of funding does not solve all housing problems. Proper policies and structures must be in place to ensure that the funding is spent wisely, benefits those most in need and has a positive effect in the long term.
While I have given some figures relating to our social housing output to indicate progress over recent years, housing progress simply cannot be measured in terms of numbers alone. We remember the mistakes of the past, the large, sprawling local authority housing estates on greenfield sites where basic communal development proved difficult. Nor can we easily forget the problems of the low cost housing experiment — the legacy of which continues to absorb so much badly needed capital. The numbers of new local authority houses being built were very impressive when the low cost housing programme was in full swing, but these numbers were achieved at great social cost to the tenants and economic cost to the taxpayer to remedy the defects inherent not only in the concept but equally in the houses.
We still live with the social and financial consequences of these mistakes. However, the important thing is that we have learned. My aim, therefore, is to ensure that we do not have to rely on a single policy response to social housing needs but that a variety of appropriate measures are available. In addition we must ensure that the increased output from the social housing programmes is of the highest quality in terms of the physical housing conditions and their location and integration with the wider community.
Against that background "Social Housing — The Way Ahead" was published in May. It grew from a review of the measures introduced in the earlier "Plan for Social Housing" which was, in many ways, a groundbreaking document. It radically redirected social housing policy from the traditional single solution of building local authority housing and brought to the forefront many important concepts, such as counteracting social segregation which had not previously been a major objective of housing policy. It brought choice into the social housing area in a radical way through programmes to expand housing provision by the voluntary sector and additional options for local authorities, including the purchase of existing dwellings to meet needs. It made home ownership available to persons who previously could not have aspired to owning their own homes. It, furthermore, stressed the need for better management of the public housing stock.
However, circumstances change. In 1991, local authority waiting lists stood at 23,000 households but subsequently reached 28,600 in 1993. The pressure of increasing needs made it urgent for us to consider the social housing area in detail and this has been achieved in "Social Housing — The Way Ahead".
Accordingly, this document reports progress in housing since 1991, reviews the operation of the new measures in the "Plan for Social Housing", gives details of important changes being made in the terms of these and other longer established schemes to increase output, and maps out the further development and implementation of the housing commitments in A Government of Renewal.
My Department commissioned the ESRI to undertake a detailed analysis and evaluation of the 1993, assessment of local authority housing needs. I have decided that the next assessment of needs should be undertaken in March 1996 and that this assessment should take account of the conclusions of the ESRI analysis. My Department will, therefore, shortly issue detailed guidelines to local authorities which will assist them in carrying out a comprehensive assessment of social housing needs which takes account of the range of needs, including homeless and travellers, and the social housing options now available.
Local authority housing remains the mainstay of the overall response to social housing need. The previous Government more than trebled the size of this programme in 1993 to 3,500 starts and maintained it at that level in 1994. This Government has further increased the programme to 3,900 starts in 1995.
However, the local authority housing programme of the 1990s is fundamentally different in character from that of previous decades. A key policy consideration now is to provide housing in a manner which does not contribute to or reinforce social segregation. Local authorities are now providing housing in small, well designed schemes often on infill sites and without recourse, as in the past, to large estates on greenfield sites at the edges of cities and towns. Authorities are also increasingly purchasing existing houses to meet needs. These acquisitions should reach approximately 600 this year in comparison with 462 last year and, of course, few, if any, under the old style local authority housing programme. The expanded local authority programme is, therefore, now responding to needs in a much more sensitive, flexible and socially aware manner.
The improved physical appearance of recent local authority housing schemes is marked. Dublin Corporation's Bride Street development in the inner city is a good example of how local authority housing can and does compare favourably with the best private sector developments. To encourage authorities towards better and more appropriate housing I have recently introduced a design award scheme. These awards will recognise the excellence and quality which we now find in the design of many of our local authority housing schemes. It will encourage all authorities to achieve higher standards in their housing provision.
The policy document "Social Housing — The Way Ahead" also deals comprehensively with the management of the existing local authority housing stock. The provision of a quality service to tenants and the general public alike through proper management by authorities of their housing estates is a particular priority. As a former councillor, I am well aware that housing management is a demanding task for local authorities. Nationally, it involves responsibility for some 95,000 dwellings and expenditure of approximately £90 million annually. Good management requires planning, organisation, direction and effective implementation.
Management relates, in part, to taking care of the physical condition of the housing stock. In this regard, my Department and the housing authorities have worked well to bring about significant improvements in the quality of existing housing. Since 1985 capital investment of over £136 million has been made through the remedial works programme. Similarly, since 1991 £13.5 million has been invested in providing bathroom facilities in local authority dwellings.
Good housing management is about more than maintaining and improving the physical fabric and facilities of housing. It is also about improving the quality of life in the estates and addressing issues such as alienation and anti-social behaviour. Tenants need to be involved in running their estates and have an opportunity to contribute to the development of their community. Good housing management hinges on good relationships between the local authority, as landlord, and tenants. I want authorities to increase and improve tenant involvement at all levels in running estates as they know better than anybody else the strengths, weaknesses and problems in the area. The key point is to develop mechanisms which allow the knowledge and interest of tenants to be utilised and harnessed for the betterment of everybody. Involving tenants in a real way in housing management requires new skills and attitudes by local authorities. Many of the new housing management initiatives contained in "Social Housing — The Way Ahead" will assist tenants and local authority housing officials to develop the new concepts and skills confidently and successfully.
I wish to refer to some of the initiatives which have the capacity to contribute significantly to improving housing management. Last May I announced a new scheme of grants to support and encourage selected pilot projects in housing management. We set aside £100,000 for housing authorities to develop projects focusing on specific activities, additional to their normal day-to-day management and maintenance. These projects must have the scope to deliver lasting benefits to the authority itself and have potential to be replicated by other authorities.
The response to the scheme has been very encouraging. Thirty four authorities put forward 55 projects for consideration and I have now chosen 16 of them for grant aid. Eleven of the proposals focus on involving tenants in the management of their estates and include training programmes for both tenants and housing officials. These projects should help to promote greater skills, knowledge, understanding and closer working relations among the participants. We must build on these pilot projects and extend the lessons from them throughout the country. I foresee each authority, in due course, developing its own blueprint for effective estate management which reflects its own unique combination of needs and resources.
I also announced in May my intention to establish a housing management group, comprising representatives of the local authorities and the Department, to promote best practice in housing management in consultation with the voluntary sector. This group can contribute significantly to developing policies on many key housing management issues. These issues include training programmes for local authority personnel, provision of housing information, identifying key performance indicators for use by local authorities and developing an overall programme for the promotion of best practice throughout all authorities. In dealing with its remit, I expect the group to liaise with other interests, including the voluntary housing sector whose experience and perspectives will be relevant. New ideas and ways of dealing with problems are always valuable and should be sought on as wide a basis as possible.
In recent years the role of local authorities has moved from the traditional function of the direct provision of housing for rent towards a new promotional and facilitating role in the delivery of the full range of housing services within their area. This involves the authorities in actively and imaginatively promoting the various options and schemes now available to address housing needs.
One of the most important tasks of the housing management group will be to set out proposals for the development of a comprehensive housing information service through the local authorities. In common with all public bodies, authorities must become much more responsive to the needs of their clients, they must be customer driven. Accordingly, I proposed the establishment of local housing advice centres or "one-stop-shops". A major element in the Department's support for the new housing information service is the preparation and publication of a range of housing information in leaflet form. Ten housing information leaflets have already been published by my Department and supplied to authorities and voluntary organisations. They cover such issues as a summary of the range of housing options, local authority housing, the voluntary housing schemes, disabled persons grants and so on.
One of the most important features of housing policy is the expanded role for the voluntary housing sector. Progress in this area has been considerable since 1991. Overall voluntary housing output doubled to 900 units in the two years to 1994. Some 1,000 units will be provided this year and I expect output to continue to increase.
In order to support this expanded role for the voluntary sector significant improvements to the terms of the capital assistance scheme and rental subsidy schemes were provided for in "Social Housing — The Way Ahead". The maximum assistance under the capital assistance scheme was increased by £2,000 to £27,000 per unit for one and two person dwellings and by £7,000 to £33,000 per unit for family type dwellings. The rental subsidy scheme was boosted by the raising of general income eligibility limits, improvements in the unit cost limits on construction from £35,000 to £41,000 generally and to £46,000 in major urban centres and by a 50 per cent increase in the maintenance and management allowance.
The benefits of involvement by the voluntary sector in the social housing programme extends beyond the provision of accommodation, vital though that role is. Voluntary bodies generally have a key role in developing community spirit, in fostering self-help rather than dependency and in enabling people to become active players in shaping their own futures rather than passive recipients.
There is no single repository of all housing knowledge. We can only tackle the range and complexity of housing needs in a modern society with a corresponding range and diversity of responses. Above all, the statutory and voluntary sectors must work together and exchange the benefit of their experience if we are to successfully address housing problems and build thriving communities rather than soulless housing estates.
The priority housing needs of travellers and the homeless were particularly addressed in "Social Housing — The Way Ahead". All of us who have responsibility for the housing system — and I specifically include among this group Deputies who are members of a local authority — must strive to secure minimal acceptable living conditions for the travelling community. Whatever extra funds over and above the annual provisions are required for the local authority traveller accommodation programmes will be provided.
There has been some progress in recent years but despite the best efforts of a number of local authorities lack of action by others continues to adversely affect the programme. The report of the Task Force on the Travelling Community was published in July 1995. The implications of implementing the task force's wide-ranging recommendations, including the proposed establishment of a travellers accommodation agency, are now being considered by a group representative of the Departments involved. I expect the group's findings to be with Government before the end of the year.
The homeless, of course, clearly benefit from the expansion of the local authority housing programme. They will also benefit particularly from the changes I have introduced into the capital assistance scheme which, in recent years, has provided much badly needed accommodation for homeless persons. However, our policies on the homeless must be continually assessed and developed to ensure that our actions are targeting the areas where needs are most acute. "Social Housing — The Way Ahead" identifies a number of specific priority areas to deal with homelessness, including the availability of accommodation in which homeless persons can be assisted to make the transition to a more settled way of life; improving liaison between statutory and voluntary bodies in order to provide a more integrated service; the availability of suitable accommodation for certain categories not adequately catered for at present, for example, emergency accommodation for people with particular needs arising from health or addiction problems.
To provide accommodation is vital but in the case of the homeless it is rarely enough on its own and a range of support services are usually also needed. I am anxious that the statutory and voluntary sectors are properly structured to ensure that services are available not alone to provide accommodation but also to prevent homeless persons from becoming trapped in the cycle of homelessness. Services must be comprehensive, responsive and flexible. No single statutory agency working alone will be able to meet the complex needs of homeless persons. I have been examining the position over recent months including the roles and responsibilities of local authorities and health boards, especially in the Dublin region. I hope to be in a position shortly to announce the results of my review.
Before leaving the issue of homelessness. I simply cannot let the opportunity go without expressing my appreciation of those who work with the homeless, whether in statutory or voluntary agencies, for their selfless dedication, hard work and real achievements.
"Social Housing — The Way Ahead" recognises the increasingly important role of the private rented sector in meeting social housing needs. Important steps have been taken to improve the lot of tenants since 1992, including the introduction of the requirement of at least one month's notice to quit; mandatory rent books; legally binding minimum physical standards of rented accommodation; the abolition of distress, under which a landlord could seize tenants' property to enforce the payment of rent; and tax relief on private rents provided in this year's budget.
I am also moving ahead with my proposals for the registration of private rented accommodation. I have consulted widely with the various interests in relation to registration and I intend to finalise the necessary regulations as soon as possible. This will also assist local authorities in the enforcement of the other statutory requirements relating to the sector and the fees payable on registration will provide a source of income to assist authorities in discharging their regulatory functions in relation to the sector.
Home ownership is the preferred tenure of the vast majority of our population and "Social Housing — The Way Ahead" includes a number of measures to assist marginal house purchasers. The shared ownership system was introduced to assist low income households who aspired to home ownership but who simply could not afford home ownership under the conventional loan repayments system. I am glad to say that over 3,700 households moved into their own homes since 1991 with the aid of shared ownership. Arising from the review of the system, I took the opportunity to reduce the minimum initial equity that must be purchased under the system from 50 per cent to 40 per cent. The new limit gives additional flexibility and should enable the system to make a greater impact on social housing needs without attracting people into the system who do not have the resources to achieve ownership. For example, the initial purchase of 50 per cent of a £30,000 house would cost £15,000 whereas £16,000 would purchase 40 per cent of a £40,000 house.
Local authorities continue to provide mortgage finance for people who cannot obtain mortgage finance from a bank or building society. The maximum house purchase loans from local authorities has been increased from £25,000 to £33,000 generally with a higher limit of £35,000 on certain off shore islands.
The mortgage allowance scheme is an important incentive for local authority tenants and tenant purchasers who wish to return their present house to the local authority and acquire their own house in the private sector. I have significantly improved the terms of the scheme from £3,300 payable over five years to £4,500 over the same period.
It reflects well on the quality of the vast majority of our local authority housing stock and the living conditions of the tenants, that, when the opportunity arises, many wish to purchase rather than continue to rent their houses. Tenant purchase of local authority dwellings has, for many years, been a feature of our housing system. Tenant purchase has now been put on a permanent, open-ended footing rather than the earlier schemes which tended to apply for set periods only. During my review of the social housing system, I noted that the 1993 scheme was much less generous than those which had previously applied. To redress this situation, I was pleased to be able to introduce in "Social Housing — The Way Ahead" revised terms for the tenant purchase scheme to make purchase more affordable to a greater number of tenants by increased discounts and also a shared ownership option.
The publication of a policy document such as "Social Housing — The Way Ahead," is sometimes mistakenly seen as the end of a process. It most assuredly is not. Housing needs are constantly evolving, constantly changing. Housing policy must therefore, continually adapt to new situations, concerns and challenges.
"Social Housing — The Way Ahead" acknowledges the need for change and sets out a framework for the development of social housing policy which will stand us in good stead over the coming years.
