Thursday, 11 February 2021

Questions (109)

Cian O'Callaghan

Question:

109. Deputy Cian O'Callaghan asked the Minister for Housing, Local Government and Heritage the average cost to councils for social housing; the range by the lowest to the highest amount spent by each council on social housing in tabular form; and if he will make a statement on the matter. [7642/21]

View answer

Written answers (Question to Housing)

I understand the Deputy is referring to the construction of new social homes by local authorities.

As capital funded construction projects by local authorities must, like all publicly-funded construction programmes, comply with the Public Spending Code and Capital Works Management Framework, my Department periodically issues Unit Cost Ceilings (UCCs) for each local authority area, for use as a key benchmark for the development and costing of social housing construction scheme designs at capital appraisal stage. While not a record of actual delivery costs, UCCs are based on an analysis of returned data from tendered social housing schemes over an extended period and updated based on published tender index information as required.

To monitor tender cost trends and to inform the UCCs levels, my Department analyses the tender data for the construction cost element of local authority new build social housing schemes approved under the four-stage approval processes for each unit type, where sufficient information is available to allow such costs to be extrapolated and where the information available is appropriate for comparison purposes.

Outlined in the tables below are average construction costs (incl. VAT) recorded as part of the aforementioned analysis for projects tendered in each of the years 2017 to 2020. I have provided the averages across all local authority areas, in addition to the averages for the four Dublin local authorities and other city based authorities for comparison purposes.

The tables also set out the range of costs that make up this average for each local authority. The range of costs recorded vary, depending on design, type of units (e.g. bedroom numbers, apartment/house); and on the level of abnormal cost requirements for each scheme, such as existing site conditions, demolitions, service diversions and site access requirements. Abnormal costs are also separately identified in the tables below.

2017

Construction Costs* (incl abnormals)

Abnormal Costs

Average CostPer Unit

Range of AverageCosts Per Unit

Average CostPer Unit

Range of AverageCosts Per Unit

All LAs

185,935

102k - 316k

11,493

1k - 54k

Cork City

N/A

N/A

N/A

N/A

Dublin City

262,043

262k - 262k

11,548

12k - 12k

DLR

231,966

171k - 316k

11,065

1k - 41k

Fingal

172,091

164k - 178k

5,305

4k - 11k

South Dublin

195,547

182k - 220k

5,259

1k - 15k

Galway City

N/A

N/A

N/A

N/A

Limerick

156,163

136k - 279k

5,959

1k - 36k

Waterford

170,415

169k - 179k

8,282

7k - 15k

* Construction Costs as shown, are derived from unit cost analysis and capture the construction cost element only incl abnormals (i.e. not all-in costs). Costs also vary depending on design, type of units (e.g. bedroom numbers, apartment/house).

2018

Construction Costs* (incl abnormals)

Abnormal Costs

Average CostPer Unit

Range of AverageCosts Per Unit

Average CostPer Unit

Range of AverageCosts Per Unit

All LAs

222,085

121k - 391k

29,376

1k - 105k

Cork City

210,248

194k - 243k

15,551

12k - 41k

Dublin City

357,967

327k - 391k

75,572

51k - 105k

DLR

N/A

N/A

N/A

N/A

Fingal

202,830

191k - 250k

19,296

10k - 61k

South Dublin

176,431

176k - 176k

Incl.

Galway City

N/A

N/A

N/A

N/A

Limerick

219,545

163k - 251k

3,391

12k - 12k

Waterford

182,662

183k - 183k

13,865

14k - 14k

* Construction Costs as shown, are derived from unit cost analysis and capture the construction cost element only incl abnormals (i.e. not all-in costs).Costs also vary depending on design, type of units (e.g. bedroom numbers, apartment/house).

2019

Construction Costs* (incl abnormals)

Abnormal Costs

Average CostPer Unit

Range of AverageCosts Per Unit

Average CostPer Unit

Range of AverageCosts Per Unit

All LAs

239,837

131k - 375k

22,716

4k - 58k

Cork City

241,260

241k - 241k

19,024

19k - 19k

Dublin City

351,564

240k - 375k

38,393

10k - 43k

DLR

271,645

272k - 272k

39,471

39k - 39k

Fingal

N/A

N/A

N/A

N/A

South Dublin

267,177

257k - 271k

Incl.

Galway City

202,248

198k - 208k

8,006

4k - 11k

Limerick

223,289

198k - 247k

20,817

6k - 35k

Waterford

248,238

248k - 248k

58,074

58k - 58k

* Construction Costs as shown, are derived from unit cost analysis and capture the construction cost element only incl abnormals (i.e. not all-in costs).Costs also vary depending on design, type of units (e.g. bedroom numbers, apartment/house).

2020**

Construction Costs* (incl abnormals)

Abnormal Costs

Average CostPer Unit

Range of AverageCosts Per Unit

Average CostPer Unit

Range of AverageCosts Per Unit

All LAs

205,111

139k - 308k

27,156

3k - 66k

Cork City

N/A

N/A

N/A

N/A

Dublin City

237,377

237k - 237k

19,138

19k - 19k

DLR

N/A

N/A

N/A

N/A

Fingal

308,173

308k - 308k

65,971

66k - 66k

South Dublin

235,622

236k - 236k

Incl.

Galway City

N/A

N/A

N/A

N/A

Limerick

N/A

N/A

N/A

N/A

Waterford

202,213

191k - 248k

31,406

26k - 54k

* Construction Costs as shown, are derived from unit cost analysis and capture the construction cost element only incl abnormals (i.e. not all-in costs).Costs also vary depending on design, type of units (e.g. bedroom numbers, apartment/house).

**Some data on contruction costs for 2020 has yet to be analysed.

The above costs relate to the construction element of the all-in delivery cost. Other items that make up the all-in total include:

- Design/technical fees: Design fees vary from project to project, depending on the location, size and complexity of a scheme (and depending on whether design services are provided by a local authority in-house or via external appointment). As a guideline/indicator, design fee are generally expected to range between 7.5% to 12.5% of construction costs.

- Land cost: Land costs will vary significantly from project to project, depending on location and ownership status (i.e. land costs could vary from existing local authority land at no cost to land purchased at market value).

- Utilities: Connection fees for Irish Water, ESB, gas, etc. As a guideline/indicator, utility connection costs are generally in the order of €7k per unit.

- Other Costs: Other items that make up the all-in delivery cost can include site investigations/ surveys, archaeological requirements, Percent for Art contributions - and will vary from scheme to scheme.

To assist in policy development and to provide evidenced based data, in October 2020, the Irish Government Economic and Evaluation Service (IGEES) in the Department of Public Expenditure and Reform, published an ‘Analysis of Social Housing Build Programme’ which examined the social housing build programme over the years 2016 to 2019 and considered issues such as Use of Build Delivery; Type of Units, Cost & Speed of Delivery and Cost Efficiency and Market Interaction. The IGEES analysis noted the range of average costs which highlighted the diversity of costs for delivery of new build units across different developments and locations. The paper is available at the following link: http://www.budget.gov.ie/Budgets/2021/Documents/Budget/Spending%20Review%202020%20-%20Analysis%20of%20Social%20Housing%20Build%20Programme.pdf.

I look forward to working with all stakeholders in delivering on the commitment in the Programme for Government to increase the social housing stock by over 50,000 over the next five years, with an emphasis on new builds, and to ensuring that local authorities are central to delivering housing. Since taking up office, this commitment has been my key priority and focus. This is evidenced in Budget 2021 which provides record funding for housing of €3.3 billion overall.