Bernard J. Durkan
Ceist:321 Mr. Durkan asked the Minister for the Environment and Local Government the reason for the delay in the implementation of proposals to provide affordable housing; and if he will make a statement on the matter. [29798/00]
Written Answers. - Affordable Housing Scheme.
The affordable housing scheme, which involves the provision by local authorities of additional new houses specifically for low income purchasers on land provided by the local authorities, was launched last year as an additional measure to enable local authorities to assist low income house purchasers.
The development of suitable sites, including, where necessary the acquisition of land, and the planning and construction of houses does, of necessity, require some time to arrange. While the expected output for this year at some 100 houses with 1,800 at various stages of planning is less than I had hoped, I am confident that additional measures which I introduced will assist in increasing output next year.
These measures, as outlined in the Government's policy document Action on Housing, 15 June 2000, include a site subsidy of up to £30,000 in major urban areas and £25,000 in other areas which is now available to local authorities to enable them to provide houses at an affordable price and at a sufficient discount from market value. This subsidy will also apply to houses built for sale under the shared ownership scheme. These improvements, together with the provisions of Part 5 of the Planning and Development Bill will facilitate local authorities to acquire land to provide houses under the affordable and shared ownership schemes.
The affordable housing scheme complements the shared ownership scheme and many local authorities are developing housing projects to provide low income house purchasers with an option to purchase under either scheme. Transactions under the shared ownership scheme increased significantly from 805 in 1998 to 1,314 last year and this increased level of activity is being maintained this year.