Dáil Éireann Debate, Tuesday - 26 July 2022
637. Deputy Niall Collins asked the Minister for Housing, Local Government and Heritage if a response will issue to matters raised in correspondence (details supplied); and if he will make a statement on the matter. [39929/22]
View answerHousing for All (September 2021) is the Government’s plan to increase the supply of homes to an average of 33,000 per year over the next decade. 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. The Plan is backed by historic levels of investment with in excess of €20bn through the Exchequer, the Land Development Agency (LDA) and the Housing Finance Agency over the next 5 years. This will provide the sector with the stability and certainty it needs.
The Government does not underestimate the scale of the challenge. We effectively need to double output in the next five years compared to the last five. That is why a whole-of-Government approach has been adopted in order to achieve the aims of this Plan to 2030, which is being delivered in partnership and collaboration with other State bodies, the private sector and the community and voluntary sector.
Housing for All sets out four pathways to a better housing system that draws this comprehensive approach together:
- supporting homeownership and increasing affordability;
- eradicating homelessness, increasing social housing delivery and supporting inclusion;
- increasing new housing supply; and
- addressing vacancy and efficient use of existing stock.
These pathways are underpinned by long-term actions to address systemic challenges. It aims to create a housing system which has environmental, social and economic sustainability at its heart and which meets the needs of all.
Increasing housing supply is at the core of Housing for All. Indications of increased construction activity are becoming evident which will help increase the availability of homes across all tenures.
This year, the target under Housing for All is 24,600 new homes. In the 12 months to the end of March 2022, a total of 22,219 new homes were completed. In the past twelve months (July 2021 to June 2022), Commencement Notices for the construction of 29,343 new homes were received. On a rolling 12 month basis, the total number of commencements received is 7.6% higher than previous 12-month period of July 2020 to June 2021 (27,264). In addition, latest CSO figures show planning permissions for all residential dwellings are up 22.7% in the year ending Q1 2022 (44,491) when compared to the same time period to Q1 2021 (36,252). Together, the figures point to a substantial uplift in new housing supply in the coming years, as we increase output to average of at least 33,000 new homes per year. This increase in supply will be key to meeting demand, moderating price inflation, and addressing affordability for those wishing to rent or buy their own home.
In terms of the yearly targets, Housing for All aims to build capacity to reach an average of 33,000 homes over the lifetime of the plan. While the projection for this year is 24,600 new homes, this projection increases year on year and the target for 2023 is 29,000 homes. In 2024 the projection rises to 33,450 homes, with the target for 2025 being 34,600 new homes delivered. This rises to 40,500 in 2030. The projections are designed to scale up year after year as the construction industry expands and productivity increases.
Increasing productivity in the construction industry is crucial to ensuring the increasing projections are met and sufficient homes are built. Housing for All commits that the Government and relevant State agencies will advance methods to reduce residential construction costs, particularly the cost of apartment construction, by increasing the focus of existing and planned construction related initiatives on the residential construction sector, and by ensuring a coordinated, whole-of-Government approach to residential construction.
There are also positive developments in relation to construction sector employment and the capacity of the sector to deliver the number of homes required. The Q1 2022 Labour Force Survey data, compiled by the CSO, shows that there are 159,300 employed in the sector, an increase of 36,800 compared to Q1 2021.
Affordability, for those wishing to rent or buy, is at the heart of Housing for All.
2022 represents the first year of a very ambitious programme of delivery of affordable housing. Significant funding has been secured and is being made available by Government to support delivery of affordable housing for purchase or for cost rental by local authorities, Approved Housing Bodies and by the LDA.
In addition, the First Home Scheme, launched on 7 July, supports first-time buyers in purchasing new houses and apartments in the private market through the use of an equity share model, similar to that employed in the Local Authority Affordable Purchase Scheme. The Scheme is designed to assist first-time buyers in meeting the higher costs of newly constructed homes and, in doing so, will increase the volume of new homes being developed. The Scheme aims to support in the region of 8,000 households in acquiring new homes in the private market in the years 2022 to 2026 with an overall budget of €400 million. Further information on the First Home Scheme can be accessed here: firsthomescheme.ie/
Additional affordable housing delivery will be facilitated under the provisions of the expanded 20% Part V requirement as and when they arise, and subject to the planning process.
Other measures, such as the Help to Buy Scheme and the Local Authority Home Loan are also available to eligible purchasers nationally to make home ownership more affordable.
Whilst Housing for All commits to an increase in social housing delivery, including an average of 9,500 new-builds per year, there has been significant progress in recent years. The total provision of social housing has increased from 3,979 homes delivered in 2010 to 9,183 homes delivered in 2021. This increased delivery has been made possible by increased Government investment. Total expenditure on new-builds, acquisition and leasing has increased from €462.1 million in 2016 to €1.69 billion in 2021. During the corresponding period, the social housing waiting list declined from 91,600 in 2016 to 59,247 in 2021, a substantial reduction of 35.3%. For five years in a row the overall number of households on local authority waiting lists has decreased.
My Department published the Quarter 1 2022 Social Housing Construction Status Report (CSR) which shows that at the end of Quarter 1 2022, 8,776 social homes were under construction, with an additional 11,551 homes at design and tender stage. In Quarter 1 2022, 109 new construction schemes, (1,733 homes) were added to the pipeline. The report is available at the following link: gov.ie/en/publication/6912a-social-housing-construction-projects-status-report-q1-2022/
Increasing the supply of housing, and delivering on our commitments in Housing for All, is the top priority for me and the Government and we have made a good start on our path towards this goal. Importantly, a comprehensive implementation and reporting framework is well established to assess how the actions under the Plan are progressing. These structures include political oversight, via the Cabinet Sub-Committee on Housing, the Housing for All Secretary General Delivery Group, and dedicated Workstreams, all of which monitor delivery of the Plan and recommend any adjustments to priorities, as required, on an ongoing basis.
Progress reports are published on a quarterly basis. The fourth of these reports, covering progress in Q2 2022 was published on 14 July. These reports can be accessed here: gov.ie/en/collection/9d2ee-housing-for-all-quarterly-progress-reports/
