The Housing for All strategy is the Government’s plan to increase the supply of housing to an average of 33,000 per year over the next decade. Our annual targets include the delivery of 90,000 new social homes and 54,000 new affordable homes in the period 2022-2030. Housing for All is supported by an investment package of over €4bn per annum, through an overall combination of €12bn in direct Exchequer funding, €3.5bn in funding through the Land Development Agency (LDA) and €5bn funding through the Housing Finance Agency and through a strategic partnership between the State and retail banks.
In relation to increased delivery of social homes, there is a target to build 9,000 new social homes in 2022 and there is a strong pipeline in place to support this delivery. The Social Housing Construction Status Report (CSR) published each quarter provides scheme level detail on social housing new build activity in each local authority, including those delivered by Approved Housing Bodies (AHBs). The most recent report for Quarter 3 2021 shows that there were 9,746 social homes under construction onsite with an additional 9,559 homes at various stages of design and procurement.
Through Housing for All, we are also strengthening the capacity of local authorities to initiate, design, plan, develop and manage housing projects. I approved over 200 new staff for local authority housing delivery teams in December 2021. These posts will increase the capacity of local authorities to initiate, manage and deliver new build housing schemes.
The Housing Agency will also act as a centre of expertise to support local authority and AHB housing delivery. Additional resources are being allocated to the Housing Agency to fulfil this role.
In relation to affordable housing, the Affordable Housing Act 2021, the first ever standalone affordable housing legislation, established a basis for four new affordable housing measures. These measures will deliver on the Programme for Government commitment to put affordability at the heart of the housing system and prioritise the increased supply of affordable homes through (1) delivering affordable homes on local authority lands, (2) the introduction of a new form of tenure in Cost Rental, (3) a First Home shared equity scheme and (4) expanding Part V planning requirements to increase the 10% contribution requirement to 20% and to apply it to cost rental as well as social and affordable housing.
It is anticipated that the first affordable purchase homes under the Local Authority Affordable Purchase Scheme will be made available in Cork in February. Cork City Council indicated the prices to be €218,000 for a 2-bedroom and €243,000 for a 3-bedroom dwelling. This will be followed by a Fingal County Council supported affordable purchase development (Dun Emer). Fingal County Council have indicated these will cost €166,000 for a 2-bed apartment and between €206,000 and €258,000 for 3-bed dwellings.
Separately, as part of Housing for All, additional funding of €1bn was committed to the Land Development Agency in order for it to deliver on its pipeline of housing. This includes Project Tosaigh under which the LDA will enter into forward purchase arrangements to kick-start stalled private developments and increase the supply of affordable housing. The LDA initiated a call on 12 November 2021 targeting a scale in excess of 150 affordable units per development and is currently assessing the proposals received.
Similarly, the Housing Delivery Coordination Office (within the Local Government Management Agency) issued a call to secure additional affordable homes across 14 local authorities with the most acute affordability constraint. This call is also focused on stalled private developments but targets smaller scale developments than the LDA initiative.
Part 3 of the Affordable Housing Act provided for the establishment of a Cost Rental sector in Ireland. Despite the impacts of Covid-19, 65 Cost Rental homes were tenanted in 2021 (25 in Balbriggan Co, Dublin, and 40 in Leixlip Co. Kildare). Over 700 Cost Rental homes will be delivered by AHBs in 2022, with more to be delivered by the LDA.
The First Home shared equity scheme, under Part 4 of the Affordable Housing Act, will primarily support first-time buyers purchasing newly constructed homes on the private market. This scheme will be available at a national level and will incorporate regional price caps based on median house price sales. A Designated Activity Company to operate this scheme was incorporated last December. Confirmation of the final details of this scheme is ongoing in conjunction with the relevant stakeholders and it is anticipated that the First Home scheme will be available for applications in Q2 of this year.
In addition to these schemes, several affordability measures which promote housing supply, such as the Help-to-Buy scheme continue to be made available to eligible applicants. The Help-to-Buy incentive supports first-time buyers in meeting the deposit requirements for newly-built houses or apartments, as well as self-build homes. Subject to the level of income tax and DIRT paid over the previous 4 years, the Help-to-Buy scheme provides a maximum benefit to first-time buyers of €30,000 or 10% of the cost of the newly constructed home. The Help-to-Buy scheme has already helped over 22,000 first-time buyers achieve the deposit required for a new home. Budget 2022 confirmed an extension to the Help-to-Buy scheme up to 2022 and committed to undertake a full review of the scheme.
Finally, the new Local Authority Home Loan scheme commenced on 4 January 2022 as a successor to the Rebuilding Ireland Home Loan. This scheme incorporates a lower interest rate, higher income eligibility and more flexible home size requirements than previously applied.
Our multi-faceted approach to housing delivery will see greatly increased supply which we recognise is key to addressing inflationary pressures. Our measures will improve affordability for all families or individuals across society wishing to secure a home.
