Dáil Éireann Debate, Tuesday - 8 May 2018
130. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that the main banks are making adequate resources available to facilitate the urgently required house building programme; and if he will make a statement on the matter. [20203/18]
Amharc ar fhreagraAs the deputy is aware the banks continue to increase their new lending to the economy including to the construction sector. I have been provided with the following information from both AIB and Bank of Ireland:
AIB
"This is an area of strategic importance for the economy and the Bank. AIB is strongly supportive of the industry and we are ready and willing to increase our support as the industry grows.
We are the main bank to many of the largest developers but we also have a strong focus on mid-sized developers. We created a new dedicated team in 2017 to serve mid-sized development groups following feedback from the industry that they struggled to get the attention of mainstream Banks. This new Mid-Market team is active across the Country.
Overall, we more than doubled the size of the Bank's Development Lending Team over the last 12-months. This was done in anticipation of a marked pick-up in residential development activity in Ireland. Consequently, we expect to double our residential development lending in 2018.
On Social Housing, we are backing a number of specific developments which are being sold to Approved Housing Bodies and we have ring-fenced a €100 million Fund to further support this aspect of the market.
Regarding Student Housing, the Bank has been very active and is funding over 1,500 beds which will help the overall housing market.
Finally, we are providing on-site presence at weekends to assist mortgage seekers to get loan approvals to purchase new homes which in turn helps developers get units sold. "
BOI
"Supporting construction and development has always been a core part of Bank of Ireland’s strategy. The Bank plays a key role in supporting our customer and clients' ambitions and projects, and has a €1 billion fund for construction and development - approximately 80% of which is targeted to Ireland. This supports the development of houses, apartments and student accommodation. We are currently financing 3,500 housing units and 1,600 student beds in Ireland.
We are well positioned to increase our output this year. Our strategy for house-building is to fund the acquisition of land that is “shovel ready” – supporting Irish Government policy by encouraging house-building and discouraging land hoarding."
