Dáil Éireann Debate, Wednesday - 27 May 2020
1046. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government the breakdown of the 1,161 long-term social housing leased units delivered in 2019 by type (details supplied); the average annual cost of each lease type; and the full net present cost of each lease type over the full duration of the agreed lease. [7399/20]
View answerOf the 50,000 social housing homes to be delivered under Rebuilding Ireland, over 10,000 homes are targeted to be leased by local authorities and approved housing bodies under leasing arrangements from a range of different sources, including direct leasing by local authorities and approved housing bodies; rental availability agreements; the Repair and Leasing Scheme; the Mortgage to Rent Scheme, and Enhanced Leasing. The exact blend of delivery under leasing in any given year will depend on the availability of existing stock and new homes in particular. Leasing is funded under the Social Housing Current Expenditure Programme (SHCEP), which also meets the current costs of dwellings delivered by approved housing bodies under the Capital Advance Leasing Facility (CALF) and Housing Agency Acquisitions Programmes. There is no Lease to Buy scheme in the Department's leasing programme.
Data in relation to the 1,161 leased dwellings delivered in 2019, broken down by local authority and lease type, is published on my Department's website at the following link:
https://www.housing.gov.ie/housing/social-housing/social-and-affordble/overall-social-housing-provision
Details of the average annual cost of each lease type are set out in the Table below. The average cost is calculated based on claims for operational new units submitted by local authorities and recorded on my Department’s SHCEP financial management system at end 2019. No payments were made by my Department for Enhanced Leasing units in 2019 but the estimated average annual lease cost for 2020 for the 113 units delivered under the Enhanced Leasing Scheme is €22,221.
Table: Average Lease Cost 2019 by Lease Type
|
- |
Average Annual Cost by Lease Type |
|
LA lease from private owner |
€10,696 |
|
AHB Lease from private owner |
€8,349 |
|
MTR (AHB and Private) |
€10,144 |
|
NAMA SPV |
€16,726 |
|
RLS (LA and AHB) |
€5,666 |
My Department does not carry out Net Present Cost (NPC) calculations for different lease types as a whole in any particular year. This is because lease duration will have a strong impact on the calculation and, of the 1,161 leases referred to above, there are varying lease terms. In addition, many of the projects are located in areas that have different cost and income inputs attached and all have varying degrees of operational risk and responsibility attached. NPC calculations are used to examine competing options for a specific project or investment on specific sites, and are not deemed applicable as a comparator across multiple lease types on very different sites.
