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.
While the local authorities will continue to have the lead role in addressing social housing need, in their capacity as statutory housing authorities, the growing role of the not-for-profit sector, as represented by the Approved Housing Bodies, and other potential investors must also be further developed. My intention is that the Social Housing Strategy, provided for in Construction 2020 and now in preparation, will be both challenging and innovative, and will provide the basis for an enhanced approach to social housing provision in Ireland.
