Dáil Éireann Debate, Tuesday - 15 October 2019
628. Deputy Michael Healy-Rae asked the Minister for Housing, Planning and Local Government if he will address a matter (details supplied) regarding homelessness; and if he will make a statement on the matter. [41931/19]
Amharc ar fhreagraMy Department is currently developing a national policy approach to Cost Rental as a new form of tenure for Ireland.
Under the Cost Rental model, rents cover the cost of delivering, managing, and maintaining the homes only, less both the profit margin seen in the private rental sector and any financial supports provided by the State/local authorities. With the resulting rents significantly below market levels, this would mean that many households on moderate incomes will have access to a more affordable and stable form of rental tenure than would otherwise have been the case.
It is important to note that Cost Rental is not designed to replace social housing provision for low-income households, which remains a priority for this Government. Cost Rental is one of several schemes which my Department is using to provide more affordable housing and deliver on Rebuilding Ireland, the Government’s action plan for housing and homelessness.
I have convened a working group within my Department, in conjunction with the Land Development Agency, the Housing Agency, and other expert bodies. This group is developing the policy framework for the broader Cost Rental model and examining how a sustainable financing structure can be established to commence delivery of units at the scale required to get this new category of housing off the ground. The work of this group is being assisted by a consultancy and research support that is being undertaken by the European Investment Bank on our behalf.
This work is being informed through two Cost Rental pilot projects, at the former St. Michael's Estate in Inchicore, and at Enniskerry Road in Dun Laoghaire-Rathdown. The latter of these has already commenced construction, supported by EIB funding, and the first homes are anticipated to come on stream from 2021. The selection of further sites for Cost Rental consideration will be informed largely by the financial and operational model that will emerge from the evidence building that is currently underway.
The rents for Cost Rental units will obviously depend upon the overall cost of each development and will vary according to the site and design specifics. However, my Department has identified several factors that can put downward pressure on costs and make Cost Rental more affordable for tenants. These include subvention through the Serviced Site Fund, where €310 million is being made available to local authorities over three years, 2019 to 2021, to support the delivery of infrastructure for the provision thereafter of more affordable housing to purchase or rent.
