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Housing Assistance Payment

Dáil Éireann Debate, Thursday - 23 July 2020

Thursday, 23 July 2020

Questions (67)

Paul Donnelly

Question:

67. Deputy Paul Donnelly asked the Minister for Housing, Planning and Local Government the estimated cost of supporting a tenant on the HAP scheme for 25 years, including interest calculated, and equated to the estimated cost of a local authority building a house as part of a social housing scheme; and if he will make a statement on the matter. [17654/20]

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Written answers

The average annual exchequer cost (net of tenant contribution) for a HAP tenancy is approximately €9,500. There are no management and maintenance costs associated with the properties as these remain the responsibility of the landlord. It should also be borne in mind that some of this exchequer investment may be returned to the exchequer in the form of tax revenue from the rental income generated.

My Department provides Unit Cost Ceilings (UCCs) to each local authority as a benchmark for the development and costing of new build social housing. These UCCs are based on returned data from tendered social housing schemes over an extended period, updated from published tender index information, with the most recent set of UCCs being produced in Q1 2019. The table below outlines the Q1 2019 average UCC values for houses across all local authority areas.

Houses

1 bed

2 bed

(1 storey)

2 bed

(2 storey)

3 bed

4 bed

Construction

€155,818

€165,132

€174,206

€184,685

€199,491

All-in-Cost

€201,359

€212,624

€222,582

€234,571

€252,047

Construction cost as shown is reflective of building costs (including VAT) and also includes normal site works and site development. ‘All-in Cost’ includes cost of construction, land cost, professional fees, utility connections, site investigations/surveys, VAT and contribution to public art. Abnormal costs are excluded from these figures.

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