Housing Provision

Dáil Éireann Debate, Wednesday - 13 January 2021

Wednesday, 13 January 2021

Questions (319)

Gerald Nash

Question:

319. Deputy Ged Nash asked the Minister for Housing, Local Government and Heritage if he is satisfied that the proposed affordable housing scheme and specific shared equity plan represents good value for money; his views on the reported assessment (details supplied) that the property industry want an equity scheme because it will increase prices; his further views on the assessment from another official who reportedly stated that it will push up prices in a supply-constrained environment, most likely at a time when prices are starting to rise anyway; and if he will make a statement on the matter. [1876/21]

Written answers

Minister for Housing, Local Government and Heritage

The Programme for Government, ‘Our Shared Future’, commits to putting affordability at the heart of the housing system and to progress a state-backed affordable home purchase scheme to promote home ownership.  To begin delivering on these commitments, budget 2021 allocated €75 million for an affordable housing shared equity scheme.

 Broadly, the objectives of an Affordable Purchase Shared Equity scheme are to:

- improve access and affordability of new homes for First Time Buyers

- stimulate an increase in supply by improving confidence as to the viability of future housing developments to meet increased realisable demand

- support economic recovery from COVID-19 by encouraging employment in the construction and related sectors

It is intended that the scheme will be targeted at first-time buyers who are seeking to buy a new home, but who cannot quite secure the full mortgage amount to do so at the present time.  It will help them secure their own home by bridging the gap between the mortgage available to them and the price of the home that is suitable to meet their needs.

In progressing any policy proposal, as a matter of course, the initial stages of consultation would involve a broad consideration of any potential strengths, weaknesses, opportunities and threats of the type of measure under consideration. Schemes are then developed informed by these considerations.  Based on our initial engagements, I am confident that the detailed design of the proposed scheme, which is ongoing, can mitigate any risks which have been identified and importantly, support people and families to buy a new home in the immediate term.

It is my intention to launch later this year and, once operational, it will target Exchequer resources to simultaneously address the key challenges of affordability and supply.

The Cabinet approved the priority drafting of the Affordable Housing Bill 2020 which will provide a legislative basis for the scheme in December last.  Once enacted, the Bill will deliver on key commitments in the Programme for Government.