Dáil Éireann Debate, Tuesday - 6 October 2020
69. Deputy Brian Stanley asked the Minister for Housing, Local Government and Heritage his views on the need for cost-rental housing provision in regional towns to accommodate those unable to secure a mortgage from a bank or lending facility. [28356/20]
View answer91. Deputy Brian Stanley asked the Minister for Housing, Local Government and Heritage if he will address the position of persons whose income is above the threshold for social housing but not sufficient to secure a mortgage from a bank or lending facility. [28357/20]
View answerI propose to take Questions Nos. 69 and 91 together.
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’. We will put affordability at the heart of the housing system through the progression of State-backed affordable housing. To this end, I can confirm that both Affordable Purchase and Cost Rental homes will be delivered on State and public lands through a number of channels, including by local authorities and the Land Development Agency.
Under the Serviced Sites Fund (SSF), €310 million has been allocated to provide infrastructure to support the delivery of more affordable homes on local authority lands. 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 across 14 local authorities which have the capacity to deliver 3,200 more affordable homes. Details of these projects can be found at the following links:
https://rebuildingireland.ie/news/minister-murphy-gives-the-go-ahead-for-ten-local-authority-sites-for-affordable-housing-under-the-serviced-sites-fund/
https://rebuildingireland.ie/news/minister-murphy-approves-funding-of-e84m-to-support-delivery-of-1770-affordable-homes-under-the-ssf/
In relation to the rental sector, the Programme for Government also commits to the development of the Cost Rental model to improve security and affordability for renters. Cost Rental is not intended to overlap with or replace traditional social housing for low-income households. It is public housing where the rents charged cover the cost of delivering, managing, and maintaining the homes only.
Work to outline the consistent and sustainable delivery of Cost Rental at scale is being assisted by an external research project sponsored by the European Investment Bank (EIB) on behalf of my Department. Furthermore, three initial Cost Rental projects are already being progressed, including 50 units at Enniskerry Road in Stepaside, that are currently under construction, while sites at Emmet Road, Inchicore (the former St Michael’s Estate) and Shanganagh Castle, Shankill, are at the design phase. I can also confirm that the Land Development Agency is progressing a significant development pipeline including many thousands of both Cost Rental and Affordable Purchase homes across a range of its sites.
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 in income tax paid 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.
