Affordable Housing: Motion (Resumed) [Private Members]

The following motion was moved by Deputy Eoin Ó Broin on Tuesday, 22 October 2024:

That Dáil Éireann:

agrees that the Government's Affordable Purchase Scheme is not working, while house prices continue to spiral out of control with a 10.1 per cent increase in the last 12 months according to the Central Statistics Office;

notes that:

- no affordable purchase homes were delivered in 2020 or 2021; and

- only 323 affordable purchase homes were delivered in 2022, and just 499 in 2023, and 31 affordable purchase homes were delivered by Q1 2024;

further notes that:

- the full cost of a so-called affordable purchase home in Shanganagh Castle Estate ranges from €478,000 to €550,000;

- the full cost of a so-called affordable purchase home in Station Road, Lusk, ranges from €560,000 to €565,000; and

- the average full cost of a home under this scheme across the State is €365,000;

regrets that:

- until the buyer pays the full open market value, they do not legally own the home and the State equity can only be paid down by the buyer in €10,000 lump sums;

- where the State equity is not paid down, the full cost of the equity must be paid in full when the property is sold or by the children on inheritance;

- the legislation underpinning the scheme allows the local authority to demand repayment after 40 years, under what is termed "The Long Stop" provision in the Affordable Housing Act 2021;

- buyers in this scheme will spend 20 to 30 years working to pay down their own mortgages, and still owe the State up to 30 per cent of the future market value of the home; and

- the failure of Government to deliver a significant supply of genuinely affordable homes is contributing to house price inflation; and

resolves that:

- at least 25,000 affordable purchase homes, delivered by local authorities and Approved Housing Bodies, must be delivered over the next five years;

- these homes should be delivered at purchase prices from €250,000, with no hidden equity charges or penalties for children on inheritance;

- this can be achieved by the State covering the cost of the land, site servicing, utility connections and waiving development levies, which would allow the home being sold at or near the cost of construction;

- under this model, the buyer legally owns the home, has complete control over the property and can pass the home to their children and grandchildren;

- as the State retains ownership of the land, any future sale of the property must be to a future affordable purchaser;

- mortgage finance will be obtained by purchasers from mainstream banks and local authority home loans; and

- Sinn Féin's alternative housing plan "A Home Of Your Own" will put home ownership back into reach of working people, by delivering a growing stock of privately owned, privately traded and permanently affordable homes.

Debate resumed on amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"notes that:

- Housing for All - a New Housing Plan for Ireland, now in its third year of implementation, sets out a comprehensive suite of actions aimed at addressing affordability in the housing sector;

- Housing for All and the Affordable Housing Act 2021, have put in place the schemes and the funding to allow Government to intervene and support households on average wages currently priced out of the new housing market;

- the Government is providing €5.1 billion capital investment in 2024, to accelerate the delivery of new homes, increase the supply and moderate house and rental prices; and

- the recent strong momentum in delivery under Housing for All will be sustained by a record €6 billion capital investment in housing in 2025;

acknowledges that:

- some 128,000 houses have been added to, or brought back into, the national housing stock between January 2020, and end-June 2024, including more than 116,000 new builds, 1,800 units in 'unfinished housing developments' built out, and 10,000 or so vacant properties brought back into use;

- some 33,000 homes commenced in 2023, with this momentum continuing into 2024, with some 37,600 homes commenced in the first eight months of the year, up 76 per cent on the same period last year, and greater than the total for the whole of 2023, by some 15 per cent;

- recent month-on-month declines in new home starts reversed in August, bringing to 58,000 the quantum commenced in the 12 months to end-August, with commencement activity expected to continue to pick up as the year draws to a close;

- household purchase activity, and first-time buyer activity in particular, remains robust, with purchases by first-time buyers remaining on par year-on-year to end-August 2024;

- new home purchases by first-time buyers are also resilient, with the volume of sales up 8 per cent in the 12 months since August 2023; and

- the number of mortgage drawdowns by first-time buyers is growing, with first-time buyer drawdowns reaching a new peak of almost 26,000 in 2023, the highest annual level since 2007, while rolling 12-month drawdowns remain above 25,500 at the end of Q2 2024;

recognises that an increased delivery of affordable homes is at the heart of Housing for All, and welcomes that:

- over 8,500 affordable housing supports have been delivered since the launch of Housing for All via Approved Housing Bodies (AHB), local authorities, the Land Development Agency (LDA), through the First Home Scheme, the Cost Rental Tenant in-Situ Scheme and the Vacant Property Refurbishment Grant;

- in the first half of 2024, a total of 2,669 affordable housing options were delivered, more than double the 1,294 delivered in the first six months of last year;

- with a continued strong performance in the second half of the year anticipated, the Government is on track to meet this year's delivery target of 6,400 affordable housing supports;

- over 2,180 Cost Rental homes have already been delivered by AHBs, local authorities, LDA and through the Cost Rental Tenant in-Situ Scheme;

- funding is approved to support the delivery of more than 4,300 affordable homes (affordable purchase and cost rental) by 21 local authorities, with the support of over €380 million in grant assistance from the Affordable Housing Fund (AHF);

- over 5,500 approvals have been issued under the First Home Scheme since launch, assisting first time buyers to purchase a new home in the private market more affordably; and

- over 10,000 Vacant Property Refurbishment Grant applications have been made, with over 6,700 already approved and over 860 grants issued to date;

further notes that in relation to the Government's established Local Authority Affordable Purchase Scheme;

- has already provided close to 1,000 local authority affordable purchase homes at upfront affordable prices across 15 local authorities;

- has a growing pipeline of over 2,000 further homes approved for funding support across 21 local authority areas;

- is focused on new-build homes to increase supply in those areas where affordable homes are needed most;

- is stimulating the development of additional new housing supply now and in the years to come, as revolving AHF subsidies will support future affordably constrained households to access affordable new housing;

- provides that purchasers can avail of the benefit of living in high quality, new homes whose price would otherwise be beyond their means and who choose to buy out the equity in that home as their resources improve over time;

- allows, like any other homeowner that has availed of a mortgage, the purchaser of an affordable home to own their property and to sell their affordable home on the open market at any point with the consent of the local authority;

- that such consent cannot be unreasonably withheld, and is in recognition of the equity contribution made by the local authority, and the asset that the owner has acquired;

- allows purchasers to retain any capital gained on their share of the home on sale;

- based on the returns received from local authorities for transactions completed in 2023, the average upfront affordable purchase price paid by buyers was €267,000 across the range of 2, 3 and 4-bed homes, available in a range of locations; and

- in the case of reaching the "Long Stop Date", it is not automatic, and there is no obligation on the local authority to redeem the equity share of an affordable dwelling and that this is at the discretion of the housing authority;

furthermore, notes that:

- Sinn Féin's Housing Plan "A Home of Your Own", confirms a phasing out of the Help-to-Buy Scheme, an immediate closure of the First-Home Scheme to new applicants and a promise to examine ending other subsidies which have supported affordable housing delivery to date under Housing for All; and

- Sinn Féin will introduce a stamp duty exemption for First Time Buyers, so that if you are buying your first home, you will pay no stamp duty on a property valued at €450,000 or less, which will be worth a maximum €4,500 for a purchaser, however, under current Government supports between Help-to-Buy and the First Home Scheme, first time buyers of new homes can avail of up to €100,000; and

agrees that the continued implementation of Housing for All and the operation of the Local Authority Affordable Purchase Scheme represents the most appropriate response to deal with the affordability challenges which Ireland is now facing.

-(Minister for Housing, Local Government and Heritage)

An Ceann Comhairle

I must now deal with a deferred division relating to the ministerial amendment to a motion regarding affordable housing. On Tuesday, 22 October 2024, on the question, "That the amendment to the motion be agreed to", a division was claimed and in accordance with Standing Order 80(2), that division must be taken now.

Amendment put:

The Dáil divided: Tá, 71; Níl, 59; Staon, 0.

Tá

Brophy, Colm.
Browne, James.
Bruton, Richard.
Burke, Colm.
Burke, Peter.
Butler, Mary.
Byrne, Thomas.
Calleary, Dara.
Cannon, Ciarán.
Carroll MacNeill, Jennifer.
Collins, Niall.
Costello, Patrick.
Coveney, Simon.
Creed, Michael.
Crowe, Cathal.
Devlin, Cormac.
Dillon, Alan.
Donnelly, Stephen.
Duffy, Francis Noel.
Durkan, Bernard J.
English, Damien.
Farrell, Alan.
Feighan, Frankie.
Flaherty, Joe.
Fleming, Sean.
Foley, Norma.
Griffin, Brendan.
Haughey, Seán.
Heydon, Martin.
Higgins, Emer.
Hourigan, Neasa.
Humphreys, Heather.
Lahart, John.
Lawless, James.
Leddin, Brian.
Lowry, Michael.
MacSharry, Marc.
Madigan, Josepha.
Martin, Catherine.
Matthews, Steven.
McAuliffe, Paul.
McConalogue, Charlie.
McEntee, Helen.
McHugh, Joe.
Moynihan, Aindrias.
Moynihan, Michael.
Murnane O'Connor, Jennifer.
Naughton, Hildegarde.
Noonan, Malcolm.
O'Brien, Darragh.
O'Brien, Joe.
O'Callaghan, Jim.
O'Connor, James.
O'Dea, Willie.
O'Donnell, Kieran.
O'Dowd, Fergus.
O'Gorman, Roderic.
O'Sullivan, Christopher.
O'Sullivan, Pádraig.
Ó Cathasaigh, Marc.
Ó Cuív, Éamon.
Phelan, John Paul.
Rabbitte, Anne.
Richmond, Neale.
Ring, Michael.
Smith, Brendan.
Smyth, Niamh.
Smyth, Ossian.
Stanton, David.
Troy, Robert.
Varadkar, Leo.

Níl

Andrews, Chris.
Bacik, Ivana.
Barry, Mick.
Boyd Barrett, Richard.
Browne, Martin.
Buckley, Pat.
Cairns, Holly.
Canney, Seán.
Carthy, Matt.
Clarke, Sorca.
Collins, Joan.
Collins, Michael.
Connolly, Catherine.
Conway-Walsh, Rose.
Cronin, Réada.
Crowe, Seán.
Cullinane, David.
Daly, Pa.
Doherty, Pearse.
Donnelly, Paul.
Ellis, Dessie.
Farrell, Mairéad.
Fitzmaurice, Michael.
Gannon, Gary.
Guirke, Johnny.
Healy-Rae, Danny.
Healy-Rae, Michael.
Howlin, Brendan.
Kelly, Alan.
Kenny, Gino.
Kerrane, Claire.
Mac Lochlainn, Pádraig.
McDonald, Mary Lou.
McGrath, Mattie.
Mitchell, Denise.
Munster, Imelda.
Murphy, Catherine.
Murphy, Paul.
Mythen, Johnny.
Nolan, Carol.
O'Callaghan, Cian.
O'Donoghue, Richard.
O'Rourke, Darren.
Ó Broin, Eoin.
Ó Laoghaire, Donnchadh.
Ó Murchú, Ruairí.
Ó Snodaigh, Aengus.
Pringle, Thomas.
Quinlivan, Maurice.
Ryan, Patricia.
Sherlock, Sean.
Shortall, Róisín.
Smith, Bríd.
Smith, Duncan.
Tóibín, Peadar.
Tully, Pauline.
Ward, Mark.
Whitmore, Jennifer.
Wynne, Violet-Anne.

Staon

Tellers: Tá, Deputies Hildegarde Naughton and Cormac Devlin; Níl, Deputies Pádraig Mac Lochlainn and Denise Mitchell.

Amendment declared carried.

Question put: "That the motion, as amended, be agreed to."

The Dáil divided: Tá, 71; Níl, 59; Staon, 0.

Tá

Brophy, Colm.
Browne, James.
Bruton, Richard.
Burke, Colm.
Burke, Peter.
Butler, Mary.
Byrne, Thomas.
Calleary, Dara.
Cannon, Ciarán.
Carroll MacNeill, Jennifer.
Collins, Niall.
Costello, Patrick.
Coveney, Simon.
Creed, Michael.
Crowe, Cathal.
Devlin, Cormac.
Dillon, Alan.
Donnelly, Stephen.
Duffy, Francis Noel.
Durkan, Bernard J.
English, Damien.
Farrell, Alan.
Feighan, Frankie.
Flaherty, Joe.
Fleming, Sean.
Foley, Norma.
Griffin, Brendan.
Haughey, Seán.
Heydon, Martin.
Higgins, Emer.
Hourigan, Neasa.
Humphreys, Heather.
Lahart, John.
Lawless, James.
Leddin, Brian.
Lowry, Michael.
MacSharry, Marc.
Madigan, Josepha.
Martin, Catherine.
Matthews, Steven.
McAuliffe, Paul.
McConalogue, Charlie.
McEntee, Helen.
McHugh, Joe.
Moynihan, Aindrias.
Moynihan, Michael.
Murnane O'Connor, Jennifer.
Naughton, Hildegarde.
Noonan, Malcolm.
O'Brien, Darragh.
O'Brien, Joe.
O'Callaghan, Jim.
O'Connor, James.
O'Dea, Willie.
O'Donnell, Kieran.
O'Dowd, Fergus.
O'Gorman, Roderic.
O'Sullivan, Christopher.
O'Sullivan, Pádraig.
Ó Cathasaigh, Marc.
Ó Cuív, Éamon.
Phelan, John Paul.
Rabbitte, Anne.
Richmond, Neale.
Ring, Michael.
Smith, Brendan.
Smyth, Niamh.
Smyth, Ossian.
Stanton, David.
Troy, Robert.
Varadkar, Leo.

Níl

Andrews, Chris.
Bacik, Ivana.
Barry, Mick.
Boyd Barrett, Richard.
Browne, Martin.
Buckley, Pat.
Cairns, Holly.
Canney, Seán.
Carthy, Matt.
Clarke, Sorca.
Collins, Joan.
Collins, Michael.
Connolly, Catherine.
Conway-Walsh, Rose.
Cronin, Réada.
Crowe, Seán.
Cullinane, David.
Daly, Pa.
Doherty, Pearse.
Donnelly, Paul.
Ellis, Dessie.
Farrell, Mairéad.
Fitzmaurice, Michael.
Gannon, Gary.
Guirke, Johnny.
Healy-Rae, Danny.
Healy-Rae, Michael.
Howlin, Brendan.
Kelly, Alan.
Kenny, Gino.
Kerrane, Claire.
Mac Lochlainn, Pádraig.
McDonald, Mary Lou.
McGrath, Mattie.
Mitchell, Denise.
Munster, Imelda.
Murphy, Catherine.
Murphy, Paul.
Mythen, Johnny.
Nolan, Carol.
O'Callaghan, Cian.
O'Donoghue, Richard.
O'Rourke, Darren.
Ó Broin, Eoin.
Ó Laoghaire, Donnchadh.
Ó Murchú, Ruairí.
Ó Snodaigh, Aengus.
Pringle, Thomas.
Quinlivan, Maurice.
Ryan, Patricia.
Sherlock, Sean.
Shortall, Róisín.
Smith, Bríd.
Smith, Duncan.
Tóibín, Peadar.
Tully, Pauline.
Ward, Mark.
Whitmore, Jennifer.
Wynne, Violet-Anne.

Staon

Tellers: Tá, Deputies Hildegarde Naughton and Cormac Devlin; Níl, Deputies Pádraig Mac Lochlainn and Denise Mitchell.

Question declared carried.

Dáil Éireann debate - Wednesday, 23 Oct 2024