The Government has responded actively to the increased level of social housing need by expanding social and affordable housing output very significantly, with capital spending in 2004 at four times the 1998 level.
As part of this expanded programme, it has sought to promote the growth and development of the voluntary and co-operative housing sector. This policy has met with significant success. The 2004 provision for the voluntary housing capital assistance scheme and the capital loan and subsidy scheme is €234 million compared to €92 million for the two schemes in 2000. As a result, output has grown by about 80% with completions likely to reach about 1,700 units this year. It is acknowledged that physical progress has not reached the levels anticipated largely due to higher than anticipated construction costs, and some capacity problems within the sector in the early stage of the National Development Plan 2000-2006. This point was recognised in the ESRI mid-term review of the plan.
However, the Government remains committed to continuing to support and develop this sector. The capital provisions for 2005 for the various social and affordable housing programmes will be determined in due course, following consideration of the five-year social and affordable housing action plans for the period 2004 to 2008, which local authorities have prepared at county and city level. This plan-led approach will focus on achieving maximum output under the programmes and ensuring that this output is delivered in a coherent, integrated and sustainable manner. The main objective in introducing this action plan approach is to ensure that the significant investment available for these programmes and the benefits of the new multi-annual capital envelope approach, achieves the desired effect in the long term by tackling real need and breaking cycles of disadvantage and dependency. Local authorities were asked to take account of the role of the voluntary and co-operative housing sector in preparation of these plans to ensure an integrated approach to meeting housing needs.
