Dáil Éireann Debate, Thursday - 6 July 2023
251. Deputy Bernard J. Durkan asked the Minister for Housing, Local Government and Heritage the extent to which he expects to meet future housing demand at all levels notwithstanding the existence of many challenges; and if he will make a statement on the matter. [33359/23]
View answer256. Deputy Bernard J. Durkan asked the Minister for Housing, Local Government and Heritage what further steps can be taken to dramatically increase the housing output to meet the requirements of both the public and private housing programmes; and if he will make a statement on the matter. [33364/23]
View answerI propose to take Questions Nos. 251 and 256 together.
Housing for All: A New Housing Plan for Ireland, published on 2 September 2021, is the Government’s housing plan to 2030. The first annual update of the plan's actions was published on 2 November 2022. Under Housing for All, the supply of new homes is increasing:
• Almost 30,000 homes were delivered in 2022. This is the highest annual total since the CSO series began in 2011, and an increase of more than 45% on 2021 delivery. A further 6,716 new homes were added to the national housing stock in Q1 2023, an increase of 19% on Q1 2022. The target for 2022 was exceeded and I am confident that we are on track to meet the 2023 target.
• The strong uptick in commencements in Q4 2022 and Q1 2023 has continued into Q2 2023. 12,987 homes were commenced in the first five months of this year, a record when compared to similar periods since the data series began in 2014.
• These record commencement notices follow a recent publication by the CSO showing an increase of 37.8% in planning permissions granted in Q1 2023 to 11,659 homes.
• There is a strong pipeline of social and affordable housing, with over 19,000 new-build social homes in the pipeline and over 2,500 more local authority affordable homes already approved for funding, along with further affordable housing being planned by the LDA and Approved Housing Bodies.
The Government recognises that challenges remain. Price inflation, rising interest rates and other inter-related factors arising from the war in Ukraine have increased the cost of construction, leading to a very uncertain and unstable environment. The first annual update of Housing for All sets out how the Government is responding to these changed circumstances, ensuring focus remains on delivery.
Additional measures such as the 12-month time limited exemption from Development Levies and Water Connection Fees; an increase in the grants available as part of the Vacant Property Refurbishment Grant; a new Cost Rental Viability Measure to activate existent planning permissions; the extension of the LDA’s Project Tosaigh; and the Croí Cónaithe (Cities) initiative; will further improve viability, and get sites activated that might not otherwise be developed.
In parallel, we continue to deliver on the fundamental reforms set out in the Plan, such as reviewing the rental market; addressing the cost of construction; accelerating the adoption of Modern Methods of Construction, particularly in the delivery of public housing; and reforming the planning system to ensure a simpler, more streamlined process for all stakeholders.
A record €4.5 billion in State housing investment has been made available for 2023. This will underpin the ambitious Housing for All plan and deliver the largest state home building programme ever with 9,100 direct build social homes, and 5,500 affordable homes. Over €1 billion will be spent on affordability measures, supporting homeownership in 2023.
The challenges arising in the housing market are under constant review right across Government. The Government and I continue to explore options to ensure that housing policy can and is being modified to deliver at an accelerated pace. A copy of Housing for All and the Housing for All Action Plan Update can be accessed at the following respective links:
www.gov.ie/en/publication/ef5ec-housing-for-all-a-new-housing-plan-for-ireland/.
www.gov.ie/en/publication/da0d1-action-plan-update-and-q3-2022-progress-report/.
