The Programme for Government makes clear our commitments to provide measures for good-quality housing to purchase or rent at an affordable price.
To this end, in providing Capital funding of €468 million, Budget 2021 made clear our intentions to deliver on these commitments and outlined our plans to cover affordability measures including:
1. €110 million which will be ring-fenced for a new national Affordable Purchase Shared Equity Scheme and a new Cost Rental Equity Loan facility to help deliver Cost Rental homes both of which will begin in 2021;
2. €50 million in Services Sites Funding which will support the delivery of more affordable purchase and Cost Rental Homes on Local Authority Lands;
3. €38 million in Local Infrastructure Housing Activation Funding which will support the delivery of homes on private lands including many discounted on open market prices;
4. €210m for lending under the Rebuilding Ireland Home loan which provides a route to home ownership for those who cannot secure the necessary commercial loan.
5. €205m to be spent by the Land Development Agency in its progression of housing including affordable homes on key strategic sites, of which €60m will be provided through the Vote of the Department of Housing, Local Government and Heritage.
These measures comprise the initial broad suite of steps the Government is taking to improve access to more affordable housing.
Government is taking a two pronged approach to:
In the first part, introduce measures to provide an immediate response to alleviate very real near term challenges for certain groups and make affordable home ownership and rental a reality for many households in the short term. This includes a budget of €110 million to secure the introduction in 2021 of a new national Affordable Purchase Shared Equity Scheme and fast-tracked Cost Rental options. To this end, significant preparatory work has already been carried out by my Department working primarily with the Housing Agency, the Housing Finance Agency, the Department of Finance and Approved Housing Bodies. Intensive engagement continues with key stakeholders informing the final detailed parameters of the schemes, as well as with home builders to seek to increase the output of new homes in response to the new schemes.
In parallel with these immediate measures, we will drive fundamental supply side measures and structural reform in the way we deliver housing. Over the medium term, this will result in a far greater level of social and affordable housing provided by our local authorities on their land. It also sees the Land Development Agency working with Government departments, local authorities, State Agencies and other stakeholders and assembling large and strategic sites to deliver social and affordable homes for rent and purchase.
The Budget 2021 funding of €468 million secured, together with LDA non-voted activity to funded through capitalisation of ISIF, will allow these schemes to be developed and implemented over the coming year and beyond, on a multi-annual basis.
I intend to bring forward any necessary provisions to underpin these schemes in a forthcoming Affordable Housing and Land Development Agency Bills which will be brought to Government in the coming weeks.