As a result of the economic downturn, there has been an associated significant decline in construction activity. As the extent of social housing gain from Part V is directly related to private housing construction, the current situation is that Part V is delivering little in terms of social housing.
I am committed to the principle of a social housing gain from private development but to maximise that gain we need a properly functioning and sustainable construction sector. I believe that the Part V mechanism has the potential to again be a significant contributor to social housing in the context of a recovering housing market.
The Government’s recently published Construction 2020 – A Strategy for a Renewed Construction Sector aims to build a competitive, innovative, and sustainable construction sector. Action 9 of the strategy provides that the review of Part V will be completed in Q2 of 2014. It is anticipated that any legislative changes required on foot of the review will be incorporated into the General Scheme of a Planning Bill, which is currently in preparation.