Vol. 558 No. 3
6 Dr. Upton asked the Minister for the Environment and Local Government if his attention has been drawn to the housing study 2002, produced by the Society of Chartered Surveyors, which found that only 10,000 new houses are coming on stream in Dublin each year, while up to 20,000 are needed; the steps he intends to take to ensure that the shortfall is addressed; and if he will make a statement on the matter. [23856/02]
I am aware of the study referred to in the question. The strategic planning guidelines for the greater Dublin area estimated that there would be a need for 17,000 to 20,000 units for the five year period 2001 to the end of 2005 for the full greater Dublin area. The need for the Dublin area alone is somewhat less, estimated at about 13,000 to 15,000 units per annum over the five year period 2001 to the end of 2005. This is below the figures suggested in the Society of Chartered Surveyors report. I expect that the publication of the national spatial strategy will provide a context and structure for the review of the strategic planning guidelines.
The Government is firmly committed to the continuation of the measures which we initiated in our previous term to increase the supply of housing, including increasing investment in the provision of serviced land for housing and more effective use of that land through improved planning guidelines on residential densities. These measures have led to record levels of house completions and there are strong indications that output in 2002 will exceed the 52,602 completions achieved in 2001.
This strong performance is particularly reflected in the Dublin region. I expect that house completions in the Dublin area will considerably exceed 10,000 units this year, thereby demonstrating that the funding and institutional mechanisms put in place by the Government are now having an impact on increasing housing output in Dublin. There are also good indications for the future supply of houses in the Dublin region as registrations with Home Bond have increased 81% in the first nine months of this year compared to the same period last year. In addition, provisional data from the latest annual national inventory of zoned serviced land, issued in June 2002, shows that there were about 5,580 acres of zoned serviced land available in Dublin, with an estimated housing yield of 96,700 units. The overall objective of the Government is to continue to maintain these record levels of output to satisfy the projected housing demand.
What is the Minister of State's view of the report issued last week by the four voluntary agencies – Focus, Simon, Threshold and the Society of St. Vincent de Paul – on housing, which indicates that almost one out of every four newly formed households in Dublin cannot afford to buy a house in the city? Does he agree that, due to the continuing failure, as evidenced in his reply, to provide the number of new dwellings required to meet the need in Dublin, prices are being driven up and young people are being driven to seek housing in dormitory towns as far away as Westmeath and Offaly? These people are obliged to commute to and from Dublin and deal with all the consequences that entails in terms of transport and lifestyle. Aside from the general problem of high house prices, what does the Government intend to do to deal with the fact that people on good incomes cannot now afford to provide homes for themselves in our capital city?
I do not accept some of the Deputy's comments. I believe people on good incomes will have no difficulty in buying houses for themselves.
Will the Minister of State repeat his comment? I am not sure I heard him correctly.
The Deputy said people on good incomes will not be able to afford to buy homes for themselves.
That is a fact.
Perhaps it depends on one's definition of a good income.
What does the Minister of State think it would take to buy a home in Dublin?
If one were to buy on the open market, I assume it cost up to €250,000. If I may conclude—
What income would it take to support such a purchase?
The Deputy knows the form there.
The Minister of State said that people on good incomes would have no difficulty in buying houses.
I am simply saying that, somehow or other, these people – I have heard Deputy Gilmore's comments previously about the garda and the nurse and so on – seem to manage. There is an affordability—
Would Members bear in mind that the Chair is here?
We are being diverted completely from the question I was trying to answer.
The first-time buyers grant is no longer available.
May I try to answer any of the Deputy's questions? I may have lost some of the points he made at this stage. There is more to buying a house than the price. The affordability index, which is compiled in my Department, indicates the price of a house, the interest rate one pays, the level of disposable income, etc. Those are all major factors. Nobody denies the fact that house prices have increased enormously in recent years, although the increase this year is quite reasonable. I accept that there are pressures and, because of these, the Department and successive Governments have tried to help people who are caught in the limbo to which I refer by introducing measures such as the affordable housing scheme. I believe this excellent scheme will be of huge benefit in the future and there are already a number of major innovative projects in progress, under Part V and PPP proposals, with developers in areas such as Fingal. As a result, a far greater number of houses at more reasonable and affordable prices are becoming available. That is the way forward. We need to greatly expand the affordable housing scheme to provide more houses at an acceptable price for the people to whom Deputy Gilmore referred.
Will the Minister of State, who is responsible for housing, come back to the real world? He is completely out of touch with reality in informing the House that people on good incomes, such as a garda, a nurse or a teacher, can afford to buy a home in Dublin. Given that the report issued by the four voluntary agencies was based on the housing strategies drawn up by the local authorities in Dublin, is the Minister of State satisfied with a situation where one out of every two newly formed households in the capital city cannot now afford to buy a home here? What is the Government going to do about this?
I ask the Minister of State to be brief in his reply. I will allow a very brief supplementary from Deputy Allen.
Does the Minister of State realise that people now have to get their parents to act as guarantors for loan applications or to re-mortgage their own homes because house prices have risen to such a degree? He referred to the affordable housing scheme as a solution. Does he realise that some local authorities are totally overwhelmed by the demand for the scheme? In my local authority area there were 700 applications for 40 houses. The system is swamped by applications.
Does the Minister of State agree there is a log-jam, particularly in light of the fact that there is a great deal of serviced, zoned land within the greater Dublin area on which developers are not building houses? Does he intend to introduce any measures to ensure that those developers put up or shut up and that the land would be down-zoned if they do not develop it?
The report to which Deputy Gilmore referred was mainly concerned with the housing strategies. Local authorities completed those strategies and they will be reviewed. The Deputy and I have both served as members of local authorities. The people who issued the report last week were on the local authority SPCs, but they are now standing back and being rather critical. Those first attempts at housing strategies will be reviewed and amended by local authorities and I have no doubt we are all learning as the process goes on. I agree there are many new households which cannot afford housing. I referred earlier to the approximately €900 million being spent this year on local authority housing.
It is less than last year.
Not substantially less. If one compares like with like, it is about 2% less because there is a transfer, in terms of the direct provision area, from my Department to the Department of Justice, Equality and Law Reform. However, we expect to get better value and produce more housing than last year. In addition, a great deal of money is being invested in voluntary housing groups. If one includes voted and non-voted funds—
It all comes out of the same pot.
Deputies, we must proceed.
If one looks at the overall situation, next year's total expenditure, voted and non-voted, on housing will be €1.7 billion, which is an increase of 7% on this year's figure.
On Deputy Allen's point, I agree that some parents are contributing. On the affordable housing aspect, local authorities were very short of land a few years ago. In the last three years or so, local authorities have spent £370 million buying land. Some local authorities had no land banks a few years ago. Much of that land has now been, or will be, converted into affordable units.
7 Mr. Gogarty asked the Minister for the Environment and Local Government if he intends to respond to demands from builders and developers to change legislation requiring them to set aside 20% of all new housing estates for social housing. [24072/02]
22 Mr. Allen asked the Minister for the Environment and Local Government if he has been in contact with the local authorities regarding the implementation of Part V of the Planning and Development Act, 2000, relating to social and affordable housing; and his proposals to ensure that the provisions of the Act are implemented in relation to social and affordable housing. [23896/02]
28 Mr. Wall asked the Minister for the Environment and Local Government the nature of the review being undertaken into the operation of Part V of the Planning and Development Act, 2000; the person by whom the review is being undertaken; when it is likely to be completed; his plans pending the completion of the review, to ensure full compliance with the 20% social housing requirement; and if he will make a statement on the matter. [23855/02]
I propose to take Questions Nos. 7, 22 and 28 together.
In accordance with the commitment in An Agreed Programme for Government, the operation of Part V of the Planning and Development Act, 2000, is being reviewed to ensure that it is meeting its objectives in relation to social and affordable housing. The review is being undertaken by officials in my Department in consultation with major stakeholders. As part of the review, the Department wrote to each city and county council and also consulted a wide range of interested bodies, including representatives of the house building industry, professional institutes and social housing providers. Follow-up meetings were also held with a number of bodies to give them the opportunity to elaborate on their written submissions. The review is almost complete.
There is no question of setting aside the requirement on developers to assist towards the provision of social and affordable housing. The aim is to ensure that the objectives of Part V in relation to social integration are met while also ensuring a good supply of housing. I expect to communicate the outcome of the review very shortly.
How many local authorities are involved in this scheme and how many houses have been passed on to local authorities under it? Will the Minister confirm or deny that he is preparing to accept a levy, instead of social housing, as reported—
I missed the last part of the Deputy's comment.
It is reported that the Minister is prepared to take a levy from developers, or to allow local authorities to accept a levy instead of houses because they are not in a position to avail of some of the schemes. How many houses have come into the social housing sector under this umbrella?
The figures I have show the position up to August. A total of 50 units had been, or were about to be, occupied on foot of Part V agreements, with many more units the subject of pre-planning discussions and final negotiations between authorities, developers and builders. Having consulted some of the larger authorities, it is estimated that around 300 units may come on stream before the end of this year. Of the 33 strategies, 26 provide for the full 20% provision. Kilkenny provides for 18.7%, Laois 17.5% and the remaining five – Cavan, Donegal, Fingal, Offaly and south Dublin – 15%. A total of 19 specify a split between social and affordable housing, 14 do not.
I made it clear to the developers and the building industry last Friday that if they think that I will make any change in the 20% social and affordable housing they are wrong. It is centrally important and social integration is at the heart of it. It is being said that there needs to be less rigidity in the system to get this and to get the volumes and the housing supply up. I am examining various options which are already being used imaginatively from what I have gathered from discussions with local authorities in Dublin and other parts of the country. I am coming to a conclusion on that. All of the different parties have been in to me and I have also had discussions with my officials. I hope that we will have an outcome. The heart of the provision will not change.
Would the Minister now agree with the Labour Party's criticism of the way in which Part V was introduced? Four years after it was initially announced, only 50 units of accommodation have so far been produced under this scheme. It proves that developers and the residential building industry have so far driven a coach and four through the intention of Part V, which was to produce some social housing. Fifty units after four years is a pathetic—
It was 300 this year.
Three hundred is still pathetic. In relation to the review, will the Minister consider closing the loophole in the existing provision whereby a site of less than half an acre does not come under the scheme and, therefore, apartment developments in urban areas, some of which are benefiting from urban renewal tax benefits, are not required to make any contribution to the social housing provision? There are applications for planning permission for significant apartment developments – 40 and 50 units perhaps – on such sites where there is no requirement at present to provide social housing. Will the Minister consider, as part of his review, closing that loophole so that, particularly urban authorities with large housing lists, can benefit from the scheme?
I am pleased that the Minister is not proposing any major changes to the legislation. I repeat a question I put to his colleague. If the developers do not move ahead with sites would he consider down-zoning the land? The provision is there within the 2000 Act. It is a powerful provision which could be used to bring some of the major landowners to heel. Some of the big boys are standing firm and not proceeding with applications and we need to use all of the powers of the State to ensure that those lands come on stream. Otherwise the housing crisis will continue.
I agree in principle with both Deputies that we do need to maintain the housing supply and get more people into social and affordable housing. We need better integration. That is at the heart of this issue. I agree with Deputy Gilmore that the numbers have not been delivered. The Act is only now coming into effect. The one thing that Deputy Gilmore did not say was that there was a serious need for a change in the public mindset. There has been enormous resistance, as the Deputy would be well aware, to people purchasing these houses. We have overcome that now. I have only come into office and I am dealing with it. I think that the Deputy would recognise that. Local authorities, the social housing partners, those who deliver the type of housing have told me, as have county managers, that if there was less rigidity in the system a bigger volume might go through.
Deputy Cuffe talks about the withering issue. There is a dilemma because I do not want to lose out on the complete supply of housing. Coming back to some questions which the Minister of State answered earlier, housing supply is the real question in the market and this is now up to record figures this year at somewhere around 55,000. We need to sustain that type of figure for the next ten years without dropping it below 50,000 per annum. That is essential to meet the requirements we all want.
