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Dáil Éireann díospóireacht -
Wednesday, 5 May 2021

Vol. 1006 No. 4

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Social and Affordable Housing

Eoin Ó Broin

Ceist:

28. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage his views on whether costs of between €18,000 and €28,000 per unit per year for 25-year long-term leases represent value for money for the taxpayer in view of the rising cost of long-term leasing and Part V long-term leasing and given that building or buying social homes by local authorities and approved housing bodies is cheaper and provides tenants with lifetime security of tenure. [23276/21]

As I am sure the Minister is aware, 48 leasing projects have been approved by his Department so far this year, totalling approximately 603 leased units. The average cost of those leases is €18,000 per year. That is €451,000 per unit over the lifetime of the lease. Does he believe that represents good value for money and the best way to deliver long-term social housing to social housing applicants?

I thank the Deputy for his question. As he will know, the Government's stated objective is to focus strongly on new build activity and, in particular, local authority-led new build activity. The latter will comprise 9,500 of the target of 12,750 set down for this year. The new ambition under the programme for Government is to deliver 50,000 new social houses primarily through new build. That is what we want to see.

Leasing is one of a range of options available to supplement delivery, particularly at a time of acute housing shortage. It helps to supplement delivery, particularly under local authority and approved housing body build and acquisition programmes. It is a means of delivering additional social homes in an off-balance-sheet way, freeing up much-needed fiscal space for other spending requirements, including the housing capital programme that I want us to focus on in a very particular way.

My number one priority is the delivery of houses for the households on social housing waiting lists. In many cases where leasing is assessed to be a viable option, local authorities may not have access to adequate land or build pipelines to cater for demand in their area. That needs to change. I am working with local authorities on that issue and we will see some measures in the national development plan, NDP, review to address it.

While relative cost efficiency is always an important consideration in terms of the mix of delivery, it is not the only consideration and must be viewed in the overall context of the wider delivery issues. This is particularly important in the current climate, where it is essential to ensure the highest possible level of supply in the shortest time possible. All present wish to ensure we can continue to drive down homeless numbers and move people out of emergency accommodation.

The Deputy referred in his question to the most expensive of the leasing arrangements, the cost of which is influenced by the units' location in Fingal, Dublin and the size of the units. For his information, the average cost of new leases across all the leasing streams in 2020 was €13,850. I am happy to give the Deputy a full breakdown of that figure.

I thank the Minister. The data to which I referred is from this year. He is absolutely correct about the average cost last year. The difficulty is that the origin of leasing is back in 2008, 2009 and 2010, when there was no capital funding. We know from a report published by the Irish Government Economic and Evaluation Service, IGEES, in 2018 that long-term leasing represents very bad value for money, particularly in high demand areas such as cities or when compared with the low cost of borrowing to build and buy now. In addition, it does not provide lifetime security of tenure for tenants because after 25 years they either have to renew the lease and pay again or terminate the lease and rehouse the household elsewhere.

One of my big concerns is the dramatic increase in the number of Part V leases so far this year. There have been more than 100 such leases, the highest number to date. Some of those Part V leases are exceptionally expensive and, to me, make no sense whatsoever, given that Part V is meant to ensure permanent social housing and social tenure mix in private developments.

Given that IGEES has said this is bad value for money, and as we know it is bad for tenants, will the Minister commit to undertaking a value-for-money exercise, particularly in respect of Part V leases, and using this money more wisely?

It is a fair question. It is timely in the sense that tomorrow evening the House will take Second Stage of the Planning and Development (Amendment) (Repeal of Part V Leasing) Bill 2021 brought forward by Deputy Cian O'Callaghan. I have indicated that the Government will support that Bill moving to Committee Stage. To be frank, Part V leasing has been up to now a very small part of overall provision, with 16 such leases in 2020. That said, it is not a mechanism that should be expanded much further than that. I know that more have been approved this year. There can be particular reasons for that to happen but it should be, in my view, a last resort. I have given a commitment to review it and it is being reviewed in the NDP review.

I will be publishing the Government's housing for all plan in July. The focus must be on new build. The predominance of what will be delivered will be new build. Part V leasing in particular is an issue for me, to be frank. Leasing does have a role in other areas. We need to look at how we interact with approved housing bodies as well. The predominance of what we will do will be to focus on new build and, in the context of Part V delivery, to purchase them.

Part of my concern is that, as we know, the Government's previous targets for leasing were always significantly behind. For example, 2,000 were to be delivered last year according to the target set the year before but, of course, only half of that figure was delivered. What has changed, however, is market sentiment. There has been a significant increase in the desire of institutional investors to diversify their property portfolios. We know from speaking to local authority managers that there is far greater interest in that regard. That makes sense because the yields are much higher, they are secure and there is less risk compared with activity that is more in the private sector.

All I am urging the Minister to do, not just with respect to the Part Vs but also with leasing more generally, is to seriously consider phasing out leasing where it does not represent value for money and does not provide lifetime security of tenure for tenants, unless there is a clear case that it makes sense. The 25-year cost of the most expensive Part V lease, albeit an outlier in Dún Laoghaire-Rathdown from 2019, at €28,000 per year per unit, is €700,000. That simply makes no sense and surely is not something the Minister could support.

It is being assessed and evaluated. I want to review it. As the Deputy will know, we have just over 20,000 tenants in leased properties. The cost of that to the Exchequer is €250 million per annum. They are secure homes for people right now and we have to ensure that continues to be supported through the social housing current expenditure programme, SHCEP. There is a distinct change in the programme for Government in terms of housing targets. We want to move toward direct build and to empower local authorities to build, which I have done already by setting out their targets this year on an individual basis so that they are clear on what they need to deliver.

There is a role for leasing in other areas, such as the repair and lease scheme. I have seen where that has worked really well, particularly in the regions, such as in Waterford, Fermoy and Limerick in particular. There is also the mortgage-to-rent scheme, which is a mechanism for people with systemic mortgage arrears issues and failures that cannot be recovered in the medium or long terms. I am working with others to seek to expand that programme. I can give the Deputy a commitment that we are reviewing it. I will see when we publish our-----

Go raibh maith agat, a Aire.

We will come back to it. It is being reviewed.

Rental Sector

Cian O'Callaghan

Ceist:

29. Deputy Cian O'Callaghan asked the Minister for Housing, Local Government and Heritage the action he has taken to ensure that an independent valuation of rents has been carried out in cases in which rents are set for long-term leasing contracts; and if he will make a statement on the matter. [22884/21]

With respect to the growth in long-term leasing in recent years, what action has the Minister taken to ensure independent valuations of rent levels are carried out when leases are agreed?

I thank the Deputy. While the Government's objective is to focus strongly on local authority-led build activity, long-term leasing is an important option available to authorities to supplement delivery and secure high-quality social housing on a long-term basis. Lease payments are paid to the property owner based on a discounted market rent, with the level of discount reflecting the variation in maintenance and management responsibilities taken on by the owner. The maximum lease is 25 years and rents are reviewed every three years, linked to the harmonised index of consumer prices.

The standard long-term leasing programme has been in operation for over ten years and has a well-established assessment protocol. Local authorities have that delegated sanction to lease up to four dwellings. All proposals to lease five or more dwellings must be submitted to my Department for approval. These proposals must be accompanied by an independent valuation of the market rent for the properties carried out by or commissioned and paid for by the relevant local authority. The enhanced leasing scheme was launched in 2018 and all potential proposals are submitted by the proposers to the Housing Agency for initial assessment and co-ordination with local authorities. The proposal is then submitted to my Department for approval. As with all long-term leasing, enhanced leasing proposals submitted to my Department must be accompanied by an independent valuation of the market rent for the properties carried out by or commissioned and paid for by the relevant local authority in the area in which those properties are located.

I thank the Minister for the answer. The question refers to long-term leases involving five or more dwellings. Documents released to me under the Freedom of Information Act show that, at least in some instances, multimillion euro long-term leases were signed, having effectively gone through that process, without independent valuation. Incredibly, the valuations provided by the developer and the developer's agents were relied on. Has the Minister investigated this? How did this happen? Is he confident it will not happen again? What action has he taken to ensure it does not happen again? In how many cases were the market rents submitted by the developer not accepted by the Department or a local authority?

The Deputy is probably referring to the Herbert Hill development. That was the first enhanced leasing project approved by the Department. Following the approval, a standard review took place on all application procedures. As a result of the review, it was decided that an additional requirement for approval under the scheme would be that a local authority would, in addition to any red book valuation provided by the proposer, also provide a valuation on its own behalf. The purpose of this was to provide an additional safeguard to help local authorities achieve maximum value for money in their negotiations and to harmonise requirements under the standard long-term and enhanced leasing. This change was made in December 2019 and the second development approved was the Millrace development in Ballinasloe. An independent valuation was requested and furnished for that application.

Is the Minister confident this practice is no longer happening and there are no other instances of it? I would be grateful for an answer on that. An investigation by Killian Woods in the Business Post found evidence of institutional landlords and investment funds advertising and recording artificially high market rents that do not reflect the rents being charged. The practice of rent-fixing has serious implications for long-term leasing, which is based on discount off-market rents. Have the Minister and Department investigated the extent to which rent-fixing or artificial market rents could be influencing market rents agreed under long-term leasing?

To answer the Deputy's first question, I am not aware of any other issues with regard to valuations and independent assessments. If the Deputy is aware of any, I ask him to bring it to my attention. We have made abundantly clear to local authorities what the procedure is. We have had instances where properties have lain vacant for a long number of months, which is not something I support. With Covid, some properties were kept back for contingency reasons to house people in the event that they needed to isolate.

The Deputy's second question is not part of his written question but it is a valid one and I am happy to respond to it. I have read the report to which he referred, which was brought to my attention. I have asked my officials and the Residential Tenancies Board, RTB, to look at this matter in the round. I have made clear that I want rent transparency. It is important. It is also important that, where reasonable landlords provide deals or cut rents for tenants, we need to make sure that happens. In this instance, it appears an institutional investor artificially left the rent price higher than it actually was. I have asked my officials with the RTB to look at that matter.

House Prices

Eoin Ó Broin

Ceist:

30. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage the steps he plans to take to bring down the all-in cost of residential development in order to make homes more affordable for working persons in view of the 2020 and 2021 reports by an organisation (details supplied) on the real cost of house and apartment delivery. [22934/21]

As the Minister knows, the Society of Chartered Surveyors Ireland, SCSI, has produced two reports on the real cost of housing and apartment developments last year and this year. These have confirmed the growing gap between the all-in development costs of residential developments in the private sector and the sales price. Separate from specific measures targeting eligible affordable home buyers, will the Minister outline the work he and his officials are doing to address the key viability and affordability gap that the studies identified?

I appreciate the opportunity to address this matter. I met virtually with the Society of Chartered Surveyors Ireland and its representatives went through the report with me. It is a very informative and good piece of work, which the SCSI did with my senior officials. We have taken that work on and are continuing some collaborative work with the organisation. The reports, Real Cost of New Housing Delivery 2020 and the Real Costs of New Apartment Delivery, published in 2021, set out the typical costs associated with residential delivery. The reports identified the constituent costs, which include construction, land, developments levies, professional fees, selling costs, finance and VAT.

A multipronged collaborative approach across government and industry is required to address and reduce the wide-ranging costs involved in residential delivery. Interestingly, the report found apartment developments of between five and eight stories recorded reductions of between 2% and 9% in overall cost delivery in that area where the focus was on off-site build and delivery. I would like to see more of that.

Both reports demonstrate that construction costs account for almost 50% of the delivery costs. Issues relating to construction costs are generally a matter for the Department of Public Expenditure and Reform but the Department of Housing, Local Government and Heritage has an input in that area.

An innovation and digital adoption team to improve industry productivity across seven actions has been established. My Department is actively engaging on these initiatives which aim to improve efficiency and reduce construction costs, while achieving compliance with building regulations and other minimum quality standards. Separately, I am bringing forward reforms to the planning system, such as mainstreaming aspects of the strategic housing development process, which will conclude once the extension granted by the previous Minister has expired, reviewing the judicial review process and developing new e-planning initiatives, which may contribute to some reduction in holding times and costs and provide greater clarity around procedures.

This issue has a wider relevance than just first-time buyers. Last year, only 1,000 of the 5,000 or so real social homes that were delivered were directly delivered by local authorities and approved housing bodies, and more than half of them were turnkey properties. I do not object to turnkeys. They deliver social homes but the price paid is far higher if they are acquired when all-in development costs are rising. Some of the figures in the SCSI report are startling. All-in development costs for a standard two-bedroom apartment in Dublin city range from €410,000 to €521,000.

In fact, at the very top end one is looking at €618,000. The biggest areas of cost growth are finance, land and other aspects of the soft costs, so that there has been some increase in construction costs. Could the Minister outline specifically what the Government is doing, both his Department and his colleagues, to tackle the dramatic increase in land costs and finance costs because they are driving the rising gap between viability and affordability in the private sector, especially in the city?

I am pleased the Deputy mentioned that. There are a few initiatives. One very significant one was the creation of the Land Development Agency, which ensures that State-owned land is used productively. We bring land that has not been previously identified or used for housing into public use, and if we bring more land like that at a greatly reduced cost in many instances, effectively a zero value, that will have a positive impact on the overall cost of land because in many of those instances, the cost of land will be near zero as a result of the 90% affordability threshold we will be setting along with the 10% affordability element. There are other measures but the Land Development Agency will be significant in terms of ensuring that we use State-owned land productively at a much lower cost than normal land prices.

The Minister is being wildly optimistic about the impact of the Land Development Agency on the price of private land in the private sector. We will have a row about the Land Development Agency when the Bill comes before the select committee in two weeks.

The real problem here is that the Minister does not seem to understand the question. Due to high levels of speculative investment, particularly in the inner city but also at suburban land sites, land prices have gone up dramatically again. The SCSI report shows an increase of between 40% and 60% since its previous study in 2017. That adds enormously to the cost of delivering the homes and then selling them. The Minister is aware that his constituency is particularly badly affected and median house prices are between €460,000 and €540,000. Escalating land prices are part of that. Is the Government taking any initiatives beyond the Land Development Agency to bring down the cost of finance, land and construction in the overall private sector, which is still ultimately responsible for 80% to 90% of construction, including PPPs, turnkey projects and smart finance?

I fully understand the question. As the Deputy knows there are many aspects to this. In terms of direct interventions, the local infrastructure housing activation fund, LIHAF, is one which involves the direct allocation of €200 million to provide for public infrastructure. There are issues with the planning process including delays and continued objections. There are some infamous delays affecting social and affordable homes on State-owned sites across the country.

A group within the Department is working with the industry on costs, including those relating to construction. The SCSI report was interesting in that regard. It pointed to reductions in certain types of building. We need to look at what we are delivering in terms of off-site construction, smarter buildings, the Construction Industry Register Ireland, which we are bringing forward as well and also with regard to registration and building standards. I would not underestimate the impact of what the State can do in the delivery of affordable homes in bringing down costs. The purpose of the Affordable Housing Bill we published yesterday is to bring down cost for the people who need it most.

Social and Affordable Housing

Mick Barry

Ceist:

31. Deputy Mick Barry asked the Minister for Housing, Local Government and Heritage if he will review the planned affordable housing scheme in view of the impact of the scheme on increasing house prices; and if he will make a statement on the matter. [23275/21]

Where the Minister left off is precisely where I want to begin, that is, the affordable housing scheme, particularly the shared equity element within it. The Minister says it will bring down housing prices, but it is not just his critics on the left, as many establishment politicians as well as establishment economists have spoken about the potential for this to increase prices. I would like the Minister to comment on the issue.

I thank Deputy Barry for the question. The fundamental point is that if we keep doing the same things, we will get the same results. We need new initiatives. We need to help first-time buyers and the members of "generation rent" who are stuck paying exorbitant rents. We are going to introduce our new cost-rental scheme, the first national scheme of its kind ever. The affordable purchase shared-equity scheme is being designed specifically to help first-time buyers to buy new homes at a price they can afford much sooner than would otherwise have been the case without this intervention. There is nothing wrong with that. In so doing, it will build confidence within the sector and increase housing supply also. This is a supply-side measure. Extensive engagement has been undertaken with key stakeholders to ensure the optimum design of the scheme and significant feedback has been factored in. I welcome the feedback. I am confident that the final design of the scheme can mitigate against any potential inflationary risks. It is not a debt-driven scheme, it is an equity stake that the State will be taking.

I closely analysed a similar scheme in the UK, where, in 2019, a review by the National Audit Office, the equivalent of the Office of the Comptroller and Auditor General, concluded that it had increased housing supply by 14.5% and house price inflation was less than 1%. Our scheme will be calibrated and targeted in a much more focused way. I intend to employ more targeted measures than those relating to the British scheme. The scheme will be specific to new builds and will establish conditionality linked to maximum allowable home price by local authority area and maximum levels of equity support that will be available. Support provided will be limited to bridging the gap between the maximum mortgage available to the household and the open market price of the home. I will review the scheme after a year to ensure it is doing what it is intended to do. I am very confident about this measure. It will work. It provides hope for that whole generation of people who have been locked out of owning their own home and at an affordable rate. I hope Deputy Barry will see his way to supporting the scheme.

Could the Minister comment on the breaking news of the statement by Deputy Lahart that Fianna Fáil is drowning in the shadow of Fine Gael's housing policy? I presume the Deputy is referring to the sweeteners to the vulture funds in respect of corporation tax, capital gains tax, rent roll, stamp duty and so on, all of which Fianna Fáil allowed it to make because it was propping up the previous Government. A former Minister for Finance, Michael Noonan, famously said he wanted to facilitate the attraction of foreign investment capital to the Irish property market, recovering profitability for the banks and their balance sheets at the expense of affordable homes and ordinary people who want to buy homes, including first homes, in this country.

We have heard all day from the Taoiseach and the Tánaiste that the Government is going to do something about this, but the question is when. The Minister had a round of discussions with the Minister for Finance, Deputy Donohoe, this afternoon. Could he tell the House when we will see action on this issue?

A number of questions have been asked and a number of charges have been made. I believe in home ownership. Some others do not and that is fine. I believe it is an honest and just aspiration for people to have, and one that the State should support. I am not sure what Deputy Barry has against young people or potential first-time buyers and why he would not want to help them to own their own homes at an affordable rate or for them to be able to rent homes on a secure long-term basis through the new State-backed cost-rental scheme at a lower rate. I am sure that we all want that.

The bulk sale of properties is a legacy issue. It is one which we intend to help to tackle. I do not like seeing funds buying up family homes. I have been very critical of that in the past and I remain critical of it. I want to play my part in providing a solution to it. The market is already constrained. First-time buyers cannot compete with these type of funds. It is as simple as that. The Taoiseach was very clear on the matter, as was the Tánaiste, earlier today.

Let us be clear about who has prevented young people buying their first homes: it is not Solidarity or the Socialist Party that have been in government while young people have been locked out of the market and developers have made a fabulous profit. Let us talk about house prices. Capping affordable housing for the equity scheme at €400,000 in the city of Cork is just unreal. What planet are the Ministers on with these kind of figures? I want to ask the Minister about a statement he gave to the Irish Examiner yesterday in which he said price capping will not lead to developers driving up prices. What research did he do to back up that statement? The only example he gave me from London is one where prices went up.

The Minister's claim is that they did not go up as much as others have claimed. He said it will not lead to developers driving up prices. What scientific research has he done in this country to back up this statement?

It is hard to know where it begins and ends with Deputy Barry. I will say it again. There was 1% house price inflation over that period. There has been house price inflation. That is what we are talking about. This scheme is focused on those who need it most.

I heard Deputy Barry and Deputy Boyd Barrett, in particular, talk about price caps. They are caps, not targets. In every area in the Deputy's adopted city of Cork there will be different prices for different homes. We are making sure with a cap that no one can enter the shared equity scheme if the price of the home is over that amount. It will not drive prices up to that level. It depends on the type of house.

The scheme is a supply side scheme and will help. It is one of a number of measures in the affordable housing Bill, some of which I hope the Deputy will support, such as the delivery of direct build affordable homes on State-owned land through our local authorities. There is a €310 million fund. We are making changes. The first homes will be delivered in Boherboy in Cork and we intend to deliver up to 6,000 homes under that scheme. We have to establish it on a primary legislative footing at a national level. I expect the Deputy to support it.

Housing Policy

Thomas Pringle

Ceist:

32. Deputy Thomas Pringle asked the Minister for Housing, Local Government and Heritage if he will consider raising the financial threshold for an applicant to qualify for entry on to the housing list given that it is currently €25,000 for a single applicant or couple in County Donegal which is too low to allow a person to purchase a house; and if he will make a statement on the matter. [22676/21]

The financial threshold to qualify for entry onto the Donegal County Council housing list is €25,000. That threshold is for a single applicant or couple and, as the Minister knows, there is a small increase for children. It is simply far too low. What can be done as a matter of urgency to raise this threshold, especially given that Donegal County Council has finally received an increase in the funding allocation for housing? It is not enough and it is too little too late, but small increases are welcome. The funding provided to Donegal County Council for the delivery of housing programmes for 2016-20 is set out. How will housing be delivered?

It is a fair question, and one that I have asked. Deputy Pringle will respond to my reply.

Applications for social housing support are assessed by the relevant local authority, in accordance with the eligibility conditions set down under the Housing (Miscellaneous Provisions) Act 2009 and the associated social housing assessment regulations 2011, as amended. The regulations prescribe net income limits for each local authority in three different bands, as Deputy Pringle will know. The income bands are expressed in terms of a maximum net income threshold for a single person household of between €25,000 and €30,000, depending on the area, with additional allowances for further adults and children.

Given the cost to the State of providing social housing, it is considered prudent and fair to direct resources to those who need social housing support the most. We would all agree with that. The current income eligibility requirements generally achieve this, providing for a fair and equitable system of identifying those households facing the greatest challenge in meeting their accommodation needs.

It is important to state that as part of the broader social housing reform agenda, a review of income eligibility for socialising support in each local authority is under way. The review will have regard to current initiatives being brought forward in terms of affordable housing. That will be important because it will deal with the next cohort above the social housing limit and how we can deliver cost rental and affordable housing at scale, which I hope the Deputy will support. We brought forward the terms of the affordable cost rental housing scheme, and the review will be completed when the impacts of these parallel initiatives have been completed. I want to bring it to a conclusion, to be very honest. I expect it to be concluded this year. We will then examine whether there should be a band system into the future and what the levels need to be.

The system needs to fit in with the new cost rental scheme, which is the next threshold for people, and the affordable rental model which deals with people who are just above the social housing income limits. The review is well under way at each local authority level.

It is to be hoped the situation will be reviewed. I would not have much faith in the review and I do not think it will deliver anything further. Last week I had to tell a mother with three children that she could not get on the housing list because her income was far too high, at €26,000 a year. It is ridiculous.

This affects people right across the board. This is a cynical way for this Government and previous Governments to massage the figures for people who depend on social housing. In Donegal there are 1,849 people in HAP tenancies and 510 people in RAS tenancies, yet the Minister has said there are only 926 people on the housing list. It is mental. It is a way of keeping the figures down. That is all it is. The Government is not dealing with the issues. People cannot get houses and they cannot live in these situations.

Deputy Pringle has asked a question and I have answered it straight. The review is under way. The Deputy need not try to make something out of it that it is not. I have said it on the record of the Dáil. I mean it. The review needs to happen, and it is happening. It has to take into account the new measures on affordability we are introducing. I am bringing changes forward for larger families. I have already signed them in respect of the additional income that would be permitted per child. Some of those measures are coming through.

Further social housing reform is required. A lot of work has been done by me and my colleagues in the Department on that issue. I expect in the autumn of this year to bring some of those reforms forward. I intend that the review will be completed this year. I am not trying to massage any figures or anything like it. We have the single biggest budget in the history of the State for the delivery of social housing.

I have been in Donegal with Deputy Pringle and have seen the homes delivered by the local authorities there. There are some fantastic estates. Donegal County Council has more money now than it has ever had to deliver social homes, and I want it to do more. That is the target we have set this year. I assume the Deputy will support us in that endeavour.

The reality is that there were 30 houses delivered in Donegal. I was there on the day the Minister launched the estate. There are 1,600 people on the housing list in Donegal town but only 30 houses. That is shocking. The list is not accurate because it does not take into account the people who are just over the income level to get on the housing list and cannot provide housing for themselves. There is also a ridiculous situation in Donegal whereby landlords will not sign up to HAP or RAS. Applicants are left hanging. It is left to applicants to complain, which would mean penalising themselves further.

The Minister said we will see changes by the end of the year. That is fair enough; let us see the changes. I hope they will be real changes.

I expect to have a full and wide-ranging debate in the autumn when we bring forward some of the changes. A fair bit of work is required. We have not had a review in this regard for well over ten years. It is long overdue.

We face a major challenge in regard to social housing delivery. We have to be ambitious in terms of delivering them, but we also have to be realistic. I think we are. The Government's housing budget alone is over €3.3 billion. That is significant and we need more direct building of social homes all across the country, including the Deputy's county of Donegal. I did not visit just one development on that day, as he knows; I visited a number of other projects. It was fantastic to see the work the local authority is doing there.

It is a challenge in every county to be able to meet the demand from people on social housing lists. We intend to build 50,000 social homes over the term of this Government and deliver affordable homes for the first time, for rental and purchase. We will come back with the review later this year. That is what I intend to do. We will debate it, and look forward to the Deputy's input.

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