Dáil Éireann Debate, Tuesday - 28 September 2021
113. Deputy Mark Ward asked the Minister for Housing, Local Government and Heritage if he will provide a cost analysis on public funding used by local authorities to rent private homes for social housing over a 25 year lease; and if he will make a statement on the matter. [46391/21]
View answerAn analysis of expenditure on housing supports was carried out by the Irish Government Economic & Evaluation Service (IGEES) within the Department of Finance and Public Expenditure and Reform in 2017. This analysis concluded that cost levels within each of the schemes funded under the Social Housing Current Expenditure Programme, which includes long term leasing, were generally below average rent price levels in the market, and as such, each of the schemes were meeting their individual operating objectives, and reducing the price impact on the market.
Building on the 2017 review, IGEES carried out a further analysis, published in July 2018, focusing on the comparative analysis of delivery streams particularly related to cost effectiveness. This report found that in certain areas, where house prices are higher - e.g. Dublin and Meath - the net present cost (NPC) of delivering units via current funding programmes such as leasing is higher than construction or acquisition. In areas where house prices are lower – e.g. Mayo and Tipperary - the NPC of leasing and other current funding programmes is either at or below that for construction and acquisition.
Whilst the 2018 report found that relative cost efficiency is an important consideration in terms of the mix of delivery, it also found that it is not the only consideration and must be viewed in the context of policy objectives and wider issues. In this context, as well as relative costs, a number of other considerations must be taken into account in terms of the overall mix of delivery including the speed of delivery, the quality and appropriateness of accommodation, sectoral capacity and flexibility.
Looking at the most recent cost information available, the average cost for a leased unit, based on leased units claimed for the first half of 2021, is €11,904 per housing unit.
Finally, a full spending review of the Social Housing Current Expenditure Programme (SHCEP), which includes long term leasing, is currently being undertaken by the Department of Public Expenditure and Reform.
