Tuesday, 27 February 2018

Questions (53)

Eamon Ryan


53. Deputy Eamon Ryan asked the Minister for Housing, Planning and Local Government his plans for provision of housing delivered through the cost rental model. [9714/18]

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Written answers (Question to Housing)

Against the background of the affordability pressures which exist in the rental market, particularly in certain areas, the Government is determined to make affordable or cost rental a major part of the Irish housing system.

Under this approach, rents are set at levels to recover the construction costs and to facilitate the management and administration of developments, but with only a minimal profit margin included. To this end, I announced last month a suite of affordable housing initiatives, including a new affordable rental scheme, to be based on a cost rental model.  Further details on the suite of initiatives involved are available on my Department's website at the following link: http://rebuildingireland.ie/news/min-murphys-statement-on-affordable-homes/.

A pilot cost rental project is currently being progressed by Dún Laoghaire-Rathdown County Council, in conjunction with the Housing Agency and Approved Housing Bodies, using land owned by the Agency. I expect this pilot to go to the market later this year to secure a development partner and the best value for both the State and prospective renters.

To deliver more affordable homes, the State must develop the full potential of its residential land bank. I stressed this to local authority Chief Executives at the Housing Summit on 22 January and asked them to submit, by early March, an outline of their respective affordable housing programmes. I expect further affordable rental proposals, based on the cost rental model, to be put forward by local authorities, especially those in the main urban centres, as part of this process.

In parallel, discussions are ongoing with the European Investment Bank regarding their experiences in developing and supporting cost rental and other affordable models that could also work in Ireland.