I propose to take Questions Nos. 371 and 372 together.
On 18 July 2013, the Government approved the introduction of the Housing Assistance Payment (HAP). Approval was also given for the provision of funding to the local authorities to cover the cost of accommodating HAP recipients, and it was agreed that the Department of Social Protection (DSP) would provide for the implementation of the mandatory direct deduction of rental contributions from the welfare payments of HAP recipients and local authority tenants. My Department and DSP continue to work closely on the legal, policy and operational issues involved in developing and introducing HAP. On 17 December 2013, the General Scheme of a Housing Bill providing for HAP was approved by Government and the Bill is in preparation, as a priority for enactment to facilitate the implementation of HAP in 2014.
My Department is working closely with all the key stakeholders in overseeing plans for the implementation of HAP, but more specifically at this stage in relation to initiating a pilot project early in 2014 and phased roll out of the scheme later in 2014, subject to the enactment of the relevant legislation. Limerick City and County Councils have been identified as the lead authority to drive implementation in the local government sector including the delivery of the HAP pilot in Quarter 1 2014.
It is intended that the pilot and implementation phases will prioritise, as much as possible, the transfer of long-term unemployed rent supplement recipients, or those who are homeless or in danger of homelessness, to HAP. This is a reasonable approach to implementation, which will allow any issues that arise to be dealt with in a graduated way and give local authorities sufficient time to scale up the operation of HAP within their housing sections.
With a view to analysing the specific dynamics of homelessness, in February 2013 I published the Government's Homelessness Policy Statement which included a set of indicators which will be used to demonstrate these dynamics. These indicators will give a clearer picture of homelessness in Ireland and, in quantifying its on-going extent, will support the bringing forward of realistic and practical solutions. The Pathway Accommodation & Support System (PASS), which is now operational nationwide will assist housing authorities to report on these indicators and 2014 will be the first year for which PASS will produce composite national data on homelessness.
In relation to the availability of accommodation in the private rented sector , my Department understands that some local authorities in the Greater Dublin region are experiencing difficulties in sourcing accommodation for households transferring over from rent supplement to the Rental Accommodation Scheme . This is only to be expected as local authorities have to compete with others in the private market. That said , my Department is not aware of difficulties in securing suitable accommodation elsewhere under the scheme. While there is, therefore, some evidence emerging of a lack of supply in the private rented sector in certain areas, the national picture is mixed. The most recent rent index from the ESRI (for the Private Residential Tenancies Board (PRTB) ) showed that rents in the Dublin region had increased by 2.5% over the previous quarter while rents in the 'outside Dublin' category showed a 1.4% increase. These trends in rents suggest that there is a supply issue presenting, notably in the cities. Coupled with the ESRI figures, there is some evidence of a growing pressure on rents in the lower segment of the market with a Threshold study indicating that 50% of people in receipt of rent supplement are making 'top-up' payments to landlords. In the context of the implementation of HAP and housing policy decisions generally my Department will continue to monitor trends in the housing market and the potential impacts on housing supply.
