This Government is absolutely committed to ensuring that affordable, quality housing solutions are available to everyone in Irish society and this is reflected in the Programme for Government, "Our Shared Future". The Programme commits to putting affordability at the heart of the housing system through the progression of State-backed affordable housing.
In terms of affordable housing for purchase, the statutory basis for the delivery of affordable new housing for purchase on local authority lands is Part 5 of the Housing (Miscellaneous Provisions) Act 2009, which was commenced in June 2018.
Under my Department's Serviced Sites Fund (SSF), €310 million has been allocated to provide infrastructure to support the delivery of more affordable new homes for purchase or rent in those areas where local authorities have identified an affordability challenge and the viability to deliver homes and below open market purchase prices. Funding under the SSF is available for new-build homes on local authority land. With a maximum of €50,000 funding available per home, at least 6,200 more affordable homes, to buy or rent, can be facilitated. To date, Serviced Sites funding of €127 million has been approved in principle in support of 35 projects in 14 local authority areas, which will assist in the delivery of almost 3,200 affordable homes.
In relation to the rental sector, the Programme for Government also commits to improving security and affordability for renters. To help achieve that, we are developing a Cost Rental model for delivery of housing that creates affordability for tenants and a sustainable model for construction and management of homes. Cost Rental is housing where the rents charged cover the cost of delivering, managing, and maintaining the homes only. Cost Rental is not intended to overlap with or replace traditional social housing for low-income households.
Work to outline the consistent and sustainable delivery of Cost Rental at scale is underway through an inter-departmental multi-agency Cost Rental Working Group, and is being assisted by an external research project sponsored by the European Investment Bank on behalf of my Department. Furthermore, three initial Cost Rental projects are already being progressed, including 50 units at Enniskerry Road in Stepaside, that is currently under construction, while sites at Emmet Road, Inchicore (the former St Michael’s Estate) and Shanganagh Castle, Shankill, are at the design phase.
In addition, the Land Development Agency (LDA) is examining the potential to deliver Cost Rental homes at scale from its initial portfolio of eight sites and the broader State land bank. My Department is working closely with the LDA in relation to policy development, with the aim of assisting the LDA in its development of Cost Rental projects.
Cost Rental will help the LDA to fulfil the Public Lands Affordability Requirement, the Government’s decision that at least 30% of the housing potential of surplus State lands should be delivered as affordable housing.
Other measures such as the Help to Buy Scheme and the Rebuilding Ireland Home Loan are also available to eligible purchasers nationally to make home ownership more affordable. As part of the €7 billion July stimulus plan, an enhanced version of the Help-to-Buy scheme was announced. This will allow first-time buyers purchasing a newly-built home – or building one themselves – to claim back up to €30,000 paid in income tax and DIRT on bank deposit interest over the last four years. Full details of the Help to Buy initiative are available at https://www.revenue.ie/en/property/help-to-buy-incentive/index.aspx.
The Rebuilding Ireland Home Loan is a Government-backed mortgage which is for first-time-buyers nationwide to purchase a new or second-hand home or to self-build. This scheme offers loans on competitive terms to those who are unable to secure a commercial bank loan. Full details of the scheme are available at http://rebuildingirelandhomeloan.ie.
In terms of affordable housing more generally, I will outline my detailed plans in the near future, taking account of progress to date under the SSF, experience from these Cost Rental pilots, a number of other measures, as well as the input of key delivery partners.
