Written Answers Nos. 346-353
346. Deputy Noel Rock asked the Minister for Housing, Planning and Local Government if he has examined a report by an organisation (details supplied); his views on the projected 10% increase in housing prices in 2018; and if he will make a statement on the matter. [17247/18]
Amharc ar fhreagraAs the Deputy will be aware, chronic under-supply of housing across all tenures, for several years during the economic downturn, is at the heart of the significant challenges which exist in the housing sector. The residential construction sector in Ireland was severely impacted by the economic downturn, with housing output falling by almost 90% between 2006 and 2013.
The latest CSO Residential Property Price Index (RPPI), published on 12 April 2018, indicates that, while house prices are continuing to rise, the national index is 21.8% lower than its highest level in 2007. Dublin residential property prices are 23% lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 27.5% lower than their May 2007 peak. Alternative measures available in this area from Daft.ie and MyHome.ie show similar but slightly lower trends. While these indices are based on asking prices, the CSO data is based on completed property transactions. For example, the latest Daft.ie report indicates that asking prices are increasing by 7.3% nationally and 8.4% in Dublin.
While the statistics in the various reports may differ somewhat, all reports point to a strong demand for housing, bolstered by economic recovery and falling unemployment. This is further evidenced in the draft Government’s Stability Programme Update 2018 which was published by my colleague, the Minister for Finance, Public Expenditure and Reform, earlier this week.
Under Rebuilding Ireland and in order to get overall house building at scale activated again, the Government has, inter alia:
- approved investment of €200 million in key enabling infrastructure to open up strategic public and private sites for early development;
- updated, streamlined and de-risked the planning and regulatory regime for houses and apartments; and
- announced arrangements for development finance to be made available to house builders.
There is clear evidence that Rebuilding Ireland is having a positive impact with all housing activity indicators continuing to show encouraging trends:
- Home builders have notified 18,500 new residential construction commencements over the twelve months to end February 2018, an increase of 41% year on year;
- Planning permission was granted for almost 20,800 new homes in 2017, an annual increase of 27%;
- The CSO's preliminary Quarterly National Accounts for 2017 showed a 33% growth in residential construction investment;
- Large scale residential developments are securing planning permission through the new Strategic Housing Development (SHD) process in An Bord Pleanála.
In addition, on 22 January, I announced a further package of affordability measures, including the Rebuilding Ireland Home Loan, a new Affordable Purchase Scheme, and a focus on cost rental projects, full details of which can be accessed at http://rebuildingireland.ie/news/min-murphys-statement-on-affordable-homes/.
While the housing market is complex, through the multiplicity of actions currently being progressed through Rebuilding Ireland to increase the supply of high quality homes to at least 25,000 per annum by 2020, the Government has created the conditions required for the restoration of a more sustainable and normally functioning housing market capable of providing homes, at affordable price points to buy or rent, where and when they are required.
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 fhreagraAgainst 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.
348. Deputy Darragh O'Brien asked the Minister for Housing, Planning and Local Government the number of affordable purchase scheme units provided to date; and if he will make a statement on the matter. [17298/18]
Amharc ar fhreagraThe delivery of more affordable homes, to buy or rent, is a major priority for Government, focusing in particular on the cities of Dublin, Galway and Cork, where people are facing the greatest affordability challenge. Following the economic downturn, with housing construction output dropping by 90%, the Government has taken remedial action to get Ireland building new homes again, culminating in the comprehensive Rebuilding Ireland – Action Plan for Housing and Homelessness in July 2016.
Rebuilding Ireland is having a significant impact, with nearly 26,000 households having their social housing needs met in 2017, significantly ahead of target. In order to get overall house-building at scale activated again, the Government has:
- approved investment of €200 million in key enabling infrastructure to open up strategic public and private sites for early development;
- updated, streamlined and de-risked the planning and regulatory regime to progress major houses and apartment developments; and
- approved arrangements for development finance to be made available to house builders.
In terms of housing output all housing activity indicators continue to show encouraging trends:
- Home builders have notified 18,500 new residential construction commencements over the twelve months to end-February 2018, an increase of 41% year on year;
- Planning permission was granted for almost 20,800 new homes in 2017, an annual increase of 27%;
- The CSO's preliminary Quarterly National Accounts for 2017 showed a 33% growth in residential construction investment;
- Large-scale residential developments are securing planning permission through the new Strategic Housing Development (SHD) process in An Bord Pleanála.
The Government is committed to ensuring that housing is affordable for households on low to moderate incomes. Recognising that people want a choice of affordable purchase and rental, depending on their stage of life and circumstances, we are progressing both.
Importantly, the new measures announced in January of this year are specifically targeted at delivering more affordable homes and have the potential to deliver more than 3,000 new affordable homes to buy or rent initially, with a target delivery of at least 10,000 new affordable homes in the medium to longer term. The emphasis will be on delivering affordable homes from the public land bank in urban areas where affordability issues are greatest. Recognising that there are enabling infrastructure requirements on some sites, I am also providing Exchequer funding of €25 million, over 2018 and 2019, as a key contribution towards the delivery of more affordable housing from local authority land.
In terms of affordable purchase, the new Scheme will be based on the relevant provisions of the Housing (Miscellaneous Provisions) Act 2009, which will be commenced shortly, and enabling regulations which are in preparation. At that point, the elected members of each local authority will be responsible for determining the order of priority to be accorded to eligible households, in line with the national scheme's framework. In the meantime, Dublin City Council has two major ready-to-go sites being advanced through procurement. The elected members of the City Council have determined that 20% of the homes on these sites - at Infirmary Road and Oscar Traynor Road - will be made available to eligible households for affordable purchase.
349. Deputy Thomas Pringle asked the Minister for Housing, Planning and Local Government when a decision will be made on an application for a thatching grant by a person (details supplied); and if he will make a statement on the matter. [17340/18]
Amharc ar fhreagraMy Department received an application last month for a thatching grant for the case in question. The assessment of such applications requires an inspection of the property, which will take place shortly. A decision will issue to the applicant shortly thereafter.
350. Deputy Brendan Smith asked the Minister for Housing, Planning and Local Government the level of funding that will be provided to Monaghan County Council for 2018 in respect of housing construction, purchase of houses, upgrading of existing housing stock and funding for housing grant schemes; and if he will make a statement on the matter. [17341/18]
Amharc ar fhreagra351. Deputy Brendan Smith asked the Minister for Housing, Planning and Local Government the level of funding that will be provided to Cavan County Council for 2018 in respect of housing construction, purchase of houses, upgrading of existing housing stock and funding for housing grant schemes; and if he will make a statement on the matter. [17342/18]
Amharc ar fhreagraI propose to take Questions Nos. 350 and 351 together.
In respect of delivering new social housing homes, whether through construction, acquisition or other approaches, no precise advance allocation of funding is made to individual local authorities. Instead, funding is drawn down by the local authorities, in line with the level of advancement they make in delivering new social housing. In that regard, I have issued social housing delivery targets to all local authorities which, in the case of Monaghan and Cavan County Councils for build, acquisition and leasing from 2018-21, are 226 and 335 respectively - further information is available at the following weblink: http://rebuildingireland.ie/news/minister-murphy-publishes-social-housing-delivery-targets-for-local-authorities-2018-2021/. All local authorities, including Monaghan and Cavan, will be required to deliver against these targets and I have assured the Chief Executives that the funding is in place to support this delivery.
Funding is allocated on an annual basis in respect of a number of programmes to improve existing social housing stock. The Social Housing Energy Efficiency Retrofitting Programme improves energy efficiency and comfort levels in local authority homes, benefitting those at risk of fuel poverty and making a significant contribution to Ireland’s carbon emissions reduction targets and energy efficiency targets for 2020. My Department will also shortly ask local authorities, including Monaghan and Cavan County Councils, to submit details of their 2018 work proposals and related funding requirements for this programme.
Notification of the 2018 funding allocations to local authorities will issue shortly in respect of the funding programmes for Adaptations and Extensions to Social Housing Stock (Disabled Persons Grants, Extensions and Improvement Works in Lieu) and for the Housing Adaptation Grants for Older People and People with a Disability, which is for private houses. Ahead of the specific 2018 allocations issuing, work under these programmes is continuing as local authorities can commit up to 65% of their 2017 allocation in approving applications for 2018. This interim funding provision comfortably allows local authorities to advance work under these programmes pending full year allocations for 2018 being confirmed shortly.
Finally my Department also provides funding to local authorities under the Voids Programme, to support their work in preparing vacant social homes for re-letting. In 2017, funding of €505,254 was provided to Monaghan County Council to return 38 vacant social homes to use while Cavan County Council received €303,112 to return 31 such homes to use. Local authorities, including Monaghan and Cavan, recently submitted the list of properties they wish to be included in the 2018 Voids Programme which are now being assessed and I expect to announce details shortly of their 2018 funding. Local authorities have been advised that they should not delay in carrying out the necessary refurbishment works on eligible units, while waiting for the assessment and allocations.
352. Deputy Brendan Smith asked the Minister for Housing, Planning and Local Government if improvements will be introduced at an early date to the tenant purchase scheme to enable Part V tenants and tenants in receipt of a social welfare payment who are in a financial position to purchase their homes to participate in this scheme; and if he will make a statement on the matter. [17343/18]
Amharc ar fhreagraThe Tenant (Incremental) Purchase Scheme came into operation on 1 January 2016. The Scheme is open to eligible tenants, including joint tenants, of local authority houses that are available for sale under the Scheme. To be eligible, tenants must meet certain criteria, including having a minimum reckonable income of €15,000 per annum and having been in receipt of social housing support for at least one year.
The minimum reckonable income for eligibility under the scheme is determined by the relevant local authority in accordance with the detailed provisions of the Ministerial Direction issued under Sections 24(3) and (4) of the Housing (Miscellaneous Provisions) Act 2014. In the determination of the minimum reckonable income, local authorities can include income from a number of different sources and classes, such as from employment, private pensions, maintenance payments and certain social welfare payments, including pensions, where the social welfare payment is secondary to employment income.
The minimum income criterion was introduced in order to ensure the sustainability of the scheme. Applicants must demonstrate that they have an income that is long-term and sustainable in nature. This ensures that the tenant purchasing the house is in a financial position, as the owner, to maintain and insure the property for the duration of the charged period, in compliance with the conditions of the order transferring the ownership of, and responsibility for, the house from the local authority to the tenant.
The provisions of Part V of the Planning and Development Act 2000, as amended, are designed to enable the development of mixed tenure sustainable communities. Part V units are excluded from the Tenant (Incremental) Purchase Scheme 2016 to ensure that units delivered under this mechanism will remain available for people in need of social housing support and that the original policy goals of the legislation are not eroded over time. The continued development of mixed tenure communities remains very important in promoting social integration.
In line with the commitment given in Rebuilding Ireland, a review of the first 12 months of the Tenant Purchase Scheme’s operation has been undertaken. The review has incorporated analysis of comprehensive data received from local authorities regarding the operation of the scheme during 2016 and a wide-ranging public consultation process which took place in 2017 and saw submissions received from individuals, elected representatives and organisations.
The review is now complete and a full report has been prepared setting out findings and recommendations. In finalising the report some further inter-Departmental consultation was necessary and due consideration had to be given to possible implementation arrangements. These matters are now almost completed and I expect to be in a position to publish the outcome of the review shortly.
353. Deputy Bobby Aylward asked the Minister for Culture, Heritage and the Gaeltacht if special funding for a person (details supplied) will be granted; if a special funding scheme to support exceptionally talented young persons under 18 years of age will be investigated, with a view to its introduction; and if she will make a statement on the matter. [17237/18]
Amharc ar fhreagraThe Arts Council is the principal agency through which current funding is channelled to artists and arts organisations. The Arts Council provides funding for a number of bursaries including a Music bursary award to support professional artists to develop their art practice, although I understand that applicants are only eligible to apply for such funding on reaching 18. My Department will however refer the case to the Arts Council for advice.
The National Concert Hall also has a number of competitive bursaries. Relevant in this case is the ‘Young Musicians Award for string players’, which is a fund of €10,000 awarded every second year and which is open to players between the ages of 13 -17. Details of this award may be obtained from the National Concert Hall.
My colleague the Minister for Educational and Skills also operates a number of scholarships and bursaries for students studying abroad and may be aware of supports from which assistance could be provided.
