Dáil Éireann Debate, Thursday - 11 November 2021
284. Deputy Bernard J. Durkan asked the Minister for Housing, Local Government and Heritage the extent to which he remains satisfied that investment funds are not impeding the provision of affordable housing throughout the country; the exceptions in this regard; and if he will make a statement on the matter. [55427/21]
View answerThe Housing for All strategy delivers on the Programme for Government commitment to put affordability at the heart of the housing system. Over €4 billion in funding is provided annually, representing the highest ever level of Government investment in housing.
A multi-faceted approach is being implemented to deliver 54,000 affordable home interventions between now and 2030. This will be facilitated by Local Authorities, Approved Housing Bodies, the Land Development Agency, as well as through a strategic partnership between the State and retail banks.
In terms of the provision of housing more broadly, external sources of finance will be needed to bridge the gap between the overall funding requirement to build the Housing for All target of an average of 33,0000 homes each year and that provided via direct Exchequer funding, State borrowing, HBFI and the domestic banking sector. Institutional investment in the residential sector will reduce reliance on bank funding for development; this is important in building broader capital markets for housing development.
To ensure any such investment is consistent with wider housing policy, Government introduced a 10% rate of stamp duty applicable to bulk-purchases of family homes earlier this year. I have also recently secured approval to legislate for a new “Owner Occupier Guarantee”. This would enable Local Authorities to designate a specified number of houses and duplexes in a development for owner occupiers, based on their own Housing Needs and Demand Assessment.
At the end of 2020, institutional investors owned less than 1 per cent of the total housing stock. In this context, I am satisfied that investment funds are not impeding the provision of homes nationally.
