Dáil Éireann Debate, Tuesday - 18 September 2018
793. Deputy Joan Burton asked the Minister for Housing, Planning and Local Government if his attention has been drawn to a study (details supplied) detailing the lack of affordability of housing in the greater Dublin area, the price-to-incomes ratio underpinning the study and the need for a broader affordable housing programme; and if he will make a statement on the matter. [37413/18]
View answerI assume the Deputy is referring to the 14th Demographia International Housing Affordability Survey 2018 (January 2018). The Survey, which covers metropolitan housing markets in nine countries (Australia, Canada, China, Ireland, Japan, New Zealand, Singapore, the United Kingdom and the United States), uses data for the third quarter of 2017 and covers areas in Ireland with a population of 50,000 people or more. It reported that, relative to household income, Ireland has the most affordable housing costs compared to all other countries included in the Survey. It does, however, point to a significant affordability challenge in Dublin and an affordability issue in Cork and Galway.
As Minister, I have been clear that we need to address housing affordability, recognising the pressures that exist for low- to middle-income households, particularly in Dublin and certain other of our main urban centres. The delivery of targeted affordable housing, for purchase and rent, was a priority topic at the Housing Summit which I held with Local Authority Chief Executives in July. It is also featured prominently at the post-Housing Summit meeting with Local Authority Housing Directors of Service and at a Forum I held with Approved Housing Bodies on 17 September.
A three-pronged, targeted approach to affordable housing provision is being pursued, aimed at households earning low to moderate annual gross incomes at a maximum of €50,000 for single applicants and €75,000 for dual applicants. First, in terms of affordable housing for purchase, I have now commenced the relevant provisions of the Housing (Miscellaneous Provisions) Act 2009, to place the new scheme for affordable purchase on a statutory footing. This Scheme will be delivered by local authorities developing sites in key locations. The Scheme will be complementary to other Government schemes which help first-time buyers to buy a home, such as the Help to Buy Scheme and the new Rebuilding Ireland Home Loan.
Second, I am also determined that cost rental homes become a major part of our rental landscape in the future. There is a gap between social housing and the rental market that needs to be filled, making a sustainable impact on housing affordability, national competitiveness, and the attractiveness of our main urban centres as places to live as well as work. Cost rental is an important component of progressive housing systems around Europe.
In this regard, I have announced details of a major cost rental project with the potential to deliver over 300 cost rental homes at Emmet Road, Inchicore, as part of a mixed-tenure development of some 470 homes in total. In parallel, the Housing Agency, Dún Laoghaire-Rathdown County Council and a number of Approved Housing Bodies (AHBs) have been working on a smaller-scale cost rental pilot, at Enniskerry Road, the tenders for which will issue shortly. Learning from these pilot projects, cost rental will now be rolled out across other suitable sites.
Finally, in order to support local authorities to get their sites ready for affordable housing, I am providing €75 million in Exchequer funding for enabling infrastructure via the Serviced Sites Fund. When local authority co-funding is included, an overall minimum investment of €100 million will be provided to those sites that require infrastructural investment in order for them to be brought into use for affordable housing. The bids received from local authorities under this first call are now being assessed and I expect to make initial funding awards next month.
From engagements with the local authorities in Dublin, the wider Greater Dublin Area as well as Cork and Galway cities, their initial estimates suggest that they have lands with the potential to deliver some 4,000 new affordable homes. My Department is continuing to work with the key local authorities and the Housing Agency to identify sites for at least 10,000 new affordable homes from local authority-owned land.
In addition, the Government has now launched the Land Development Agency, which will be aiming to deliver some 150,000 new homes over the next 20 years. The new Agency has an immediate focus on managing the State’s own lands to develop new homes, and regenerate under-utilised sites, and will deliver at least 40% of any housing potential on such lands for both social and affordable housing purposes.
