Dáil Éireann Debate, Tuesday - 28 September 2021
390. Deputy Bernard J. Durkan asked the Minister for Housing, Local Government and Heritage the extent to which further flexibility can be incorporated in the Housing for All programme with particular reference to applicants who may be marginally excluded from qualification for affordable housing; and if he will make a statement on the matter. [46767/21]
View answer392. Deputy Bernard J. Durkan asked the Minister for Housing, Local Government and Heritage the extent to which he can foresee a broadening of the regulations to facilitate the accommodation of a greater number of applicants seeking affordable housing at an earlier date rather than later when housing costs are likely to be beyond their affordability; and if he will make a statement on the matter. [46769/21]
View answerI propose to take Questions Nos. 390 and 392 together.
The Programme for Government – Our Shared Future – sets out the objective that everybody should have access to sustainable, good quality housing to purchase or rent at an affordable price, built to a high standard, and located close to essential services, offering a high quality of life.
Under Action 4.12 of Housing for All, in the period to December 2021 local authorities will be preparing Housing Action Delivery Plans to include social and affordable housing where necessary (affordable purchase and cost rental). This will allow each Local Authority to determine the affordability constraint in their area based on the Housing Need and Demand Assessment.
The Local Authority Affordable Homes scheme and the First Home scheme are primarily focused on supporting first-time buyers purchasing newly built homes. Both of these schemes will be targeted at households constrained by the maximum mortgage and deposit available to them. The gap between the market value and what the household can afford (including with the assistance of the ‘Help to Buy’ incentive) will be bridged via the provision of equity support. The equity support can subsequently be redeemed at any time at the home-owners discretion, or remain outstanding until the home is sold or passed on.
The detailed design of the First Home scheme is currently progressing, for the scheme’s introduction in early 2022. Price ceilings for eligible homes will be confirmed in advance of the scheme’s operation. Regulations regarding income eligibility in respect of the Local Authority Affordable Purchase Scheme will be put in place by November.
More broadly, the Housing for All Strategy delivers on the Programme for Government commitment to put affordability at the heart of the housing system. It is the largest State-led building programme in our history, backed up by an unprecedented financial commitment in excess of €4bn per annum.
At a national level, over 300,000 new homes will be built by the end of 2030, including a projected 90,000 social homes, 36,000 affordable purchase homes and 18,000 cost rental homes. These homes will be provided by Local Authorities, Approved Housing Bodies, the Land Development Agency (LDA), as well as through a strategic partnership between the State and retail banks.
The Housing for All strategy also provides for the 'Local Authority Home Loan', which will be in place later in 2021. The Local Authority Home Loan is a successor to the Rebuilding Ireland Home Loan Scheme, and will include an increase in the income ceiling for single applicants, thus increasing the number of people eligible. From 10 September 2021, I have already implemented a reduction of the mortgage interest rate by 0.25% for new borrowers under the existing Rebuilding Ireland Home Loan (RIHL). This lower rate will also apply to loans issued under the forthcoming Local Authority Home Loan. The Help to Buy scheme is also currently available to help purchasers in accessing newly constructed homes.
