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Housing Schemes

Dáil Éireann Debate, Tuesday - 5 October 2021

Tuesday, 5 October 2021

Questions (326)

Alan Dillon

Question:

326. Deputy Alan Dillon asked the Minister for Housing, Local Government and Heritage the process he plans to follow to ensure the local authority in County Mayo implement an affordable housing scheme that is fit for purpose and adequately resourced; and if he will make a statement on the matter. [48336/21]

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Written answers

Affordable purchase and Cost Rental schemes delivered by local authorities will be subject to the provisions of the Affordable Housing Act 2021. 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 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, as well as through a strategic partnership between the State and retail banks.

Specifically regarding affordability-constrained households wishing to buy homes, the Housing for All strategy contains a multi-pronged approach to improving affordability.

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.

In addition to these distinct shared equity schemes, 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. 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 homes.

Further to the above, the Housing for All strategy also provides for the Croí Cónaithe initiative intended to service sites and refurbish existing vacant properties in regional towns and villages.

Collectively, these measures will improve affordability for all families or individuals wishing to purchase a home.

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