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Rental Sector

Dáil Éireann Debate, Thursday - 19 April 2018

Thursday, 19 April 2018

Ceisteanna (347)

Darragh O'Brien

Ceist:

347. Deputy Darragh O'Brien asked the Minister for Housing, Planning and Local Government the estimated number of units to be delivered in each of the pilot projects for a new cost rental scheme; the timeframe for their delivery; the criteria for their allocation; and if he will make a statement on the matter. [17297/18]

Amharc ar fhreagra

Freagraí scríofa

Against the background of the affordability pressures which currently exist in the rental market in certain areas, the Government is determined to make cost rental a major part of the Irish housing system, similar to the role it plays in many European countries. Under this approach, rents are set at levels to recover the construction costs and to facilitate the management and administration of developments, but with only a minimal profit margin included.

A pilot project is currently being progressed by Dún Laoghaire-Rathdown County Council, at Enniskerry Road, in conjunction with the Housing Agency and Approved Housing Bodies (AHB), using land owned by the Agency. Delivering 50 cost rental units, this pilot is providing very valuable learning to inform the wider roll out.

In terms of the timeline for delivery, like all publicly funded construction projects, the development of local authority sites for cost rental homes must comply with the Government’s Capital Works Management Framework and procurement rules, the objectives of which are to ensure greater cost certainty, better value for money and financial accountability. However, planning permission is currently in place, and I expect the project to go to tender in the coming months with a site start later this year.

In tandem with this pilot project, my Department is working to design and deliver a major cost rental project close to the city centre of Dublin, most likely on a ready-to-go local authority owned site. I recently visited the European Investment Bank in Luxembourg, with a team from my Department, to discuss how the Bank could support such a project. Importantly, this support could be both financial and also through its advisory services, benefitting from the Bank’s extensive international experience of affordable housing and cost rental projects.

I expect to be in a position to provide further detail on the ambitions around the delivery of affordable homes to buy and rent, as well as clarity on the eligibility and conditions relating to the new schemes, in the coming weeks.

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