Dáil Éireann Debate, Wednesday - 3 February 2021
269. Deputy Holly Cairns asked the Minister for Housing, Local Government and Heritage if his attention has been drawn to a report by an organisation (details supplied); and his views on the findings of the report with particular reference to the findings relating to affordability. [5235/21]
Amharc ar fhreagraThe report that the Deputy refers to is an update on a similar report which was published in 2017 and its findings are based on the costs of 2-bedroom apartments. I understand, the data was collected from 49 apartment schemes, comprising approximately 9,500 units in total. In an overall sense, the report highlights that while measures brought forward have increased viability and affordability both remain challenging for apartment developments.
The Programme for Government seeks to put affordability at the heart of the housing system with a commitment to prioritise the increased supply affordable homes and to ensure that local authorities are central to delivering housing, and progress a state-backed affordable home purchase scheme to promote home ownership.
To this end, in December last, the Cabinet approved the priority drafting of the Affordable Housing Bill 2020 which was published on 20 January 2021. This Bill provides for:
- An affordable purchase scheme for the delivery of housing by local authorities;
- A new affordable purchase shared equity scheme for private lands;
- Introducing a new form of tenure in Cost Rental - this will see the first homes delivered in 2021 where rents will be at least 25% below market rates.
Of note, the report mentioned above welcomes the Government’s shared equity scheme as a measure to help bridge the affordability gap highlighted in the report.
In terms of measures to improve viability and affordability more broadly, I am mindful of the need to efficiently manage and utilise state-owned lands. As such, the Government intendeds to legislate to establish the Land Development Agency (LDA) on a statutory basis as a matter of urgency. The LDA will be tasked to work with Government Departments, local authorities, state agencies and other stakeholders to assemble strategic sites in urban areas and ensure the sustainable development of social and affordable homes for rent and purchase.
