Written Answers Nos. 84-105
84. Deputy Rose Conway-Walsh asked the Minister for Housing, Local Government and Heritage the steps that he is taking to reduce vacancy and dereliction rates in County Mayo; and if he will make a statement on the matter. [3339/22]
Amharc ar fhreagra114. Deputy Kieran O'Donnell asked the Minister for Housing, Local Government and Heritage the support his Department is providing to help to reduce housing vacancy rates in local authority areas. [3306/22]
Amharc ar fhreagra139. Deputy Denis Naughten asked the Minister for Housing, Local Government and Heritage his plans to put measures in place to support the refurbishment of vacant property in towns and villages; and if he will make a statement on the matter. [3143/22]
Amharc ar fhreagra334. Deputy Michael Fitzmaurice asked the Minister for Housing, Local Government and Heritage when the grant to aid persons in purchasing and renovating derelict homes will be made available; the parameters or eligibility criteria for the scheme that have been determined to date; and if he will make a statement on the matter. [3621/22]
Amharc ar fhreagraAddressing vacancy and maximising the use of existing housing stock is a primary concern of this Government, as demonstrated by one of the four pathways dedicated solely to this priority area in the new Housing for All strategy. This pathway includes a number of actions to tackle vacancy and dereliction, such as:-
- A new local authority-led programme to help Local Authorities buy or compulsory purchase 2,500 vacant homes in their areas which can then be sold on the open market will ensure homes don’t lie vacant.
- Reform of the Fair Deal Scheme to remove disincentives to selling or renting unused homes.
- The Croí Cónaithe (Towns) Fund will be delivered by local authorities for the provision of serviced sites for housing, to attract people to build their own homes and to support the refurbishment of vacant properties, enabling people to live in small towns and villages, in a sustainable way.
- A new Town Centre First policy, which will provide a framework to enable the refurbishment and reimaging of vacant and derelict areas of towns.
These measures are in addition to the vacant property tax consideration being pursued by the Department of Finance.
Housing for All also commits to ensuring that vacant homes officers, who will play a key role in implementing these programmes, are full-time officers. This will ensure a dedicated focus on tackling vacancy and dereliction with a view to increasing the opportunities for residential development. This will include options for both social housing and affordable housing in many towns across the country.
85. Deputy Alan Farrell asked the Minister for Housing, Local Government and Heritage the number of homes built in 2021; the projections for 2022 currently; and if he will make a statement on the matter. [3342/22]
Amharc ar fhreagra102. Deputy Alan Farrell asked the Minister for Housing, Local Government and Heritage if commencement notices for new developments have increased in 2021; if so, the way that the increases compare with the previous three years; and if he will make a statement on the matter. [3341/22]
Amharc ar fhreagraI propose to take Questions Nos. 85 and 102 together.
Housing for All is the Government’s plan to increase the supply of housing to an average of 33,000 per year over the next decade. Over 300,000 new homes will be built by the end of 2030, including a projected 90,000 social homes, 36,000 affordable purchase homes and 18,000 cost rental homes.
The Plan is backed by historic levels of investment with in excess of €20bn through the Exchequer, the Land Development Agency and the Housing Finance Agency over the next 5 years. This will provide the sector with the stability and certainty it needs.
Indications of increased construction activity are becoming evident which will help increase the supply and availability of housing.
There is a strong supply pipeline, with latest Commencement Notices data showing a total number of 30,724 residential dwellings commenced in 2021.
This is a 42% increase when compared to the number of residential dwellings commenced in 2020 (21,686), a 17% increase when compared to in 2019 (26,237), and a 37% increase when compared to 2018 (22,467). The 2021 total is almost equal to the combined totals for 2016 and 2017 (30,816).
Of the 30,724 new dwellings commenced in 2021, 82.7% of these were scheme developments (25,409) and 17.3% were single houses (5,315).
With regard to the number of homes built, in the year to Quarter 3 2021, almost 21,000 new dwellings were completed. This represents a 6.8% year-on-year increase. The Central Statistics Office (CSO) will publish its Q4 2021 New Dwelling Completions data in the coming days.
Completions for 2022 and 2023 are projected to exceed the Housing for All targets of 24,600 and 29,000 respectively. The Central Bank forecasts that some 27,000 and 31,000 homes will be completed in 2022 and 2023 respectively.
The most recent CSO figures on planning permissions also show a strong pipeline, with 39,077 units (apartments/flats and houses) granted planning permission in the 12 months to end Q3 2021.
Increasing the supply of housing as set out in Housing for All is the top priority for me and the Government and we have made a good start on our path towards this goal. However, I acknowledge that we are coming from a low base of supply and that it will take some time before the full benefits of the strategy are tangible to our citizens.
The housing challenge remains immense, and continues to be affected by ongoing challenges including COVID-19 related delays, supply chain difficulties and inflationary pressure. The cost of housing – for those buying or renting - will continue to be a challenge in the short-term and, while we do not underestimate the difficulties this is causing for our citizens, I am confident that the delivery of Housing for All will create a sustainable housing system into the future.
86. Deputy Emer Higgins asked the Minister for Housing, Local Government and Heritage the amount being allocated to South Dublin County Council for the new local authority home loan scheme that is replacing the Rebuilding Ireland home loan; and if he will make a statement on the matter. [3085/22]
Amharc ar fhreagraThe Local Authority Home Loan Scheme has been available nationwide from local authorities since 4 January 2022 and replaces the Rebuilding Ireland Home Loan scheme. The scheme can be used for the purchase of new or second-hand residential properties and for self-builds.
Allocations for 2022 are currently being finalised and will be based on activity during 2021 provided to my Department by local authorities.
Local authorities will be notified of their allocation once this process has been completed.
87. Deputy Francis Noel Duffy asked the Minister for Housing, Local Government and Heritage if he will consider appointing a member with a background and expertise in sustainable design, planning and environmental development to the board of the Land Development Agency. [3303/22]
Amharc ar fhreagraThe Land Development Agency (LDA) was established on an interim basis in September 2018, by way of an Establishment Order made under the Local Government Services (Corporate Bodies) Act 1971. The Land Development Agency Act 2021 was signed in law in July 2021. Provisions of the Act, allowing for the establishment of a new LDA Designated Activity Company (DAC), have now been commenced. The remainder of the LDA Act will shortly be commenced providing for the dissolution of the existing entity and the transfer of its functions and staff to the new LDA DAC.
A competition to recruit a number of ordinary board members to the LDA DAC will be run in line with the stateboards.ie process by the Public Appointments Service (PAS) in conjunction with the New Economy and Recovery Authority (NewERA). The recruitment process will seek to ensure that the LDA Board includes a cross-spectrum of construction, delivery of housing, financial, governance and other independent experts including sustainability experts needed to fulfill its remit in accordance with the Programme for Government commitment, and is provided for in Section 16 of the LDA Act. The stateboards.ie process would also seek to recruit suitable candidates with a background and expertise in sustainable design, planning and environmental development to the board of the Land Development Agency.
Following an open stateboards.ie competition run by PAS in conjunction with NewERA, Mr. Cormac O’ Rourke has been selected as Chairperson of the LDA commercial agency. The LDA Chairperson would also input into the stateboards.ie process for the recruitment of ordinary LDA board members in line with normal practice.
88. Deputy Mick Barry asked the Minister for Housing, Local Government and Heritage if his Department will assess the impact of buy-to-rent developments on the price of housing and rent levels; and if he will make a statement on the matter. [3334/22]
Amharc ar fhreagra91. Deputy Mick Barry asked the Minister for Housing, Local Government and Heritage if he will consider introducing regulations to limit the development of buy-to-rent developments given their impact on the affordability of housing; and if he will make a statement on the matter. [3333/22]
Amharc ar fhreagraI propose to take Questions Nos. 88 and 91 together.
The regulation of institutional investment is a matter for the Minister for Finance.
First and foremost the solution to alleviating pressures in the rental and housing markets is boosting supply across the board. Housing for All is the Government’s plan to increase the supply of housing to an average of 33,000 per year over the next decade. Over 300,000 new homes will be built by the end of 2030, including a projected 90,000 social homes, 36,000 affordable purchase homes and 18,000 cost rental homes.
The Plan is backed by historic levels of investment with in excess of €20bn through the Exchequer, the Land Development Agency and the Housing Finance Agency over the next 5 years. This will provide the sector with the stability and certainty it needs
Housing for All recognises that external sources of finance will be needed to bridge the gap between the overall funding requirement to build an average of 33,000 homes each year, and that provided via direct Exchequer funding, State borrowing, Home Building Finance Ireland and the domestic banking sector. Private finance and institutional investment has a role to play in supporting new supply, particularly in high density apartments that would otherwise not be built and it is important to recognise the positive effects that institutional investment can have in terms of increasing the supply of housing; bringing diversity of supply with experienced large scale management practices; and increased choice for tenants, which is important for the market and for renters.
It is essential that we achieve the balance between addressing the issue of multiple purchases by institutional investors, whilst at the same time ensuring that the supply of financing to the market is not undermined, particularly for the construction of new developments.
In this regard, the Government absolutely recognises the need for protections to prevent investment moving into other areas where viability and demand are not issues and that is why as a Government we moved quickly in May 2021 to introduce the stamp duty increase and to provide guidance to planning authorities.
Furthermore, in December 2021, legislation was enacted as part of the Planning and Development (Amendment) (Large-scale Residential Development) Act 2021 that sets out the requirement for a housing strategy to take into account the existing need and the likely future need for housing, in particular houses and duplexes, for purchase by intending owner occupiers.
To address the rent affordability challenges, building on foot of the unexpectedly fast rising inflation rate, as recorded by HICP (CSO data for December 2021 shows HICP inflation of 5.7% p.a.) the Residential Tenancies (Amendment) Act 2021 provides, from 11 December 2021, a cap of 2% per annum pro rata on rent increases in RPZs, where the inflation rate is higher. In effect, this will mean that rents in RPZs may only increase by a maximum of 2% per annum pro rata during times of higher inflation.
In all cases, section 19(1) of the Residential Tenancies Acts 2004-2021 prohibits the setting of a rent that exceeds market rent.
The RTB Rent Index is published quarterly and reveals the actual rents being paid for rented properties, as distinct from the asking rents which feature in other rent reports. It is compiled in conjunction with the Economic and Social Research Institute (ESRI). It is based on actual rents paid on private tenancies registered with the RTB in the quarter, which is made up of homes new to the rental sector, new tenancies in existing housing stock and renewals of existing tenancies. Rent Index publications from 2007 to Q3 2021 can be found on www.rtb.ie/data-hub/rent-index
In the Housing for All plan, both the State and the private market have an integral role to play in increasing the delivery of new homes. The measures brought in last year and the actions laid out in Housing for All will increase the supply of homes available for purchase and rent across the country.
89. Deputy Catherine Connolly asked the Minister for Housing, Local Government and Heritage if his attention has been drawn to a report (details supplied) which highlights that in 2020 approximately 4,000 properties owned by local authorities nationally were vacant; the engagement he has had with Galway City Council and Galway County Council with regard to the findings of this report and in particular in relation to bringing vacant housing owned by these two councils back into use as a matter of urgency; and if he will make a statement on the matter. [3350/22]
Amharc ar fhreagraThe management and maintenance of local authority housing stock, including pre-letting repairs to vacant properties, the implementation of a planned maintenance programme and carrying out of responsive repairs, are matters for each individual local authority under Section 58 of the Housing Act 1966.
Notwithstanding this, Exchequer funding has also been provided through my Department's Voids Programme to support local authorities in preparing vacant properties for re-letting. This funding was introduced in 2014 to tackle long term vacancy and is now increasingly targeted to support authority's to ensure minimal turnaround and re-let times for vacant stock.
In relation to Galway City and County Council, the local authorities combined have received over €7.5 million in funding from 2014 to 2021, supporting the return of 623 properties to use.
There has been extensive funding provided particularly over the last two years under the Voids programme which not only catered for standard relets but also for vacant properties requiring more extensive works prior to relet. It is up to each local authority to submit a programme of works based on their individual allocation or targets.
In 2020, €56.4m exchequer funding was provided to bring a total of 3,607 vacant homes back into productive use within the social housing stock. This represents the highest ever yearly spend and the highest number of homes to be refurbished under the voids programme. Within this programme local authorities had the opportunity to remediate long term vacant properties (houses vacant over 12 months) the funding for which was uncapped. Again in 2021, the Voids programme catered for a non-standard refurbishment option which allowed local authorities claim an average of €50,000 funding in this category (no vacancy limit). Full details in relation to output under the 2021 programme will be published presently.
Local authorities will always have a level of vacancy in their housing stock. This will fluctuate over time as tenancy surrender and re-letting of stock is an ongoing process. The list below outlines reasons for vacancy but this is not an exhaustive list.
- For demolition and major regeneration
- Not for letting – earmarked for sale
- Dispute/legal issues holding up tenancy
- 2nd hand acquisition pending refurbishment
- Repaired and awaiting letting
- New build turnkey awaiting letting
- Offered and not accepted.
It is important to note that my Department and local authorities are working to transition from a largely response and voids based approach to housing stock management and maintenance to a planned maintenance approach. This will require the completion of stock condition surveys by all local authorities and the subsequent development of strategic and informed work programmes in response. My Department will support these work programmes by ensuring that the funding available under the various stock improvement programmes are aligned with this approach.
90. Deputy Holly Cairns asked the Minister for Housing, Local Government and Heritage his plans to ensure that Garrylucas bog, County Cork is designated as a natural heritage area immediately. [3087/22]
Amharc ar fhreagraThere are 632 proposed natural heritage areas in Ireland, including the area to which the Deputy refers.
Although proposed natural heritage area sites are not subject to the protection provisions of the Wildlife (Amendment) Act 2000, they are taken into account in local and national land-use policy, agri-environmental farm planning schemes, and environmental assessments and they may also be recognised in local authority development plans.
While a review of these sites will take place in due course, the current focus of my Department is on fulfilling Ireland’s obligations under the EU Habitats and Birds Directives and the designation of Natura 2000 sites, i.e. special areas of conservation and special protection areas.
Question No. 91 answered with Question No. 88.
92. Deputy Emer Higgins asked the Minister for Housing, Local Government and Heritage his views on the lack of one-off rural housing planning applications which have been granted by South Dublin County Council in the past five years (details supplied); the way that this figure compares to other local authorities; and if he will make a statement on the matter. [3084/22]
Amharc ar fhreagraThe National Planning Framework (NPF) features several specific National Policy Objectives (NPOs) that aim to support the overall rural pattern of development in Ireland and deliver strengthened and diversified rural communities. National Policy Objective (NPO) 15 of the NPF fully supports the concept of the sustainable development of rural areas by encouraging growth and arresting decline in areas that have experienced low population growth or decline in recent decades, while simultaneously indicating the need to manage certain areas around cities and towns.
Furthermore, NPO 19 of the NPF aims to ensure that a policy distinction is made between areas experiencing significant development pressure from urban areas, particularly within the commuter catchment of cities, and other weaker rural areas where population levels may be low and or declining. NPO 19 is aligned with the established planning approach as per the 2005 Rural Housing Guidelines, whereby considerations of social (intrinsic part of the community) or economic (persons working full or part-time) need may be applied by planning authorities in certain rural areas under urban influence in order to prevent urban sprawl.
Under the current Guidelines for Planning Authorities on Sustainable Rural Housing (2005), planning authorities are required to frame the planning policies in their development plans in a balanced and measured way that ensures the housing needs of rural communities are met, while avoiding excessive urban-generated housing.
In considering the framework for policy within a development plan, matters such as the level of pressure for development in a county, the promotion of sustainable development patterns, landscape protection, Strategic Environmental Assessment of the impact of policy and National and Regional development objectives must be taken into account.
Adoption of a plan is a reserved function of the relevant local authority, undertaken by the elected members and advised by the Chief Executive. Assessment of planning applications is also a matter for the local authority, taking into account the objectives of the adopted development plan in addition to national policy and section 28 Ministerial Guidelines. Each application must be assessed on its own merits, based on the documentation submitted, analysis of the particular site circumstances and compliance with adopted policy.
Comparison of grants of planning permission for rural housing in various local authorities does not reflect the particular issues and locational circumstances which have informed the policy framework of a local authority. These could include a location proximate to a large city and the significant level of urban-generated rural housing demand as a result, landscape sensitivity to development, the availability of land within a small local authority for rural and urban development needs and designation of significant land areas for Natura 2000 sites or other environmental sensitivities.
Updated section 28 guidelines on Rural Housing are currently being drafted by my Department to ensure consistency with new requirements and legislation at national and EU level introduced in respect of areas related to rural housing such as environmental protection, the Gaeltacht and climate action. The new guidelines, being prepared in draft in Q1 of this year, will ensure a more consistent approach between local authorities and alignment with NPF objectives. In the meantime, NPF objectives together with the 2005 Guidelines, enable planning authorities to continue to prepare and adopt development plan policies for one-off housing in rural areas.
93. Deputy Claire Kerrane asked the Minister for Housing, Local Government and Heritage the way that he will address rising rental costs for properties in areas outside Dublin such as rents in counties Roscommon and Galway which have seen significant increases; and if he will make a statement on the matter. [3332/22]
Amharc ar fhreagraSection 24A of the Residential Tenancies Act 2004, as amended, provides that the Housing Agency, in consultation with housing authorities, may make a proposal to the Minister that an area should be considered as a Rent Pressure Zone. Following receipt of such a proposal, the Minister requests the Director of the Residential Tenancies Board (RTB) to conduct an assessment of the area to establish whether or not it meets the criteria for designation and to report to the Minister on whether the area should be designated as a Rent Pressure Zone (RPZ). For the purpose of the Act, ‘area’ is defined as either the administrative area of a housing authority or a Local Electoral Area (LEA) within the meaning of section 2 of the Local Government Act 2001. There is no provision for any other type of area to be designated as a RPZ.
The criteria to be satisfied by an area under section 24A(4) of the Residential Tenancies Act for designation as an RPZ are as follows:
- the information relating to the area, as determined by reference to the information used to compile each RTB Rent Index quarterly report, shows that the annual rate of increase in the average amount of rent for that area is more than 7% in each of at least 4 of the 6 quarters preceding the period immediately prior to the date of the Housing Agency's proposal, and the average rent for the area in the last quarter, as determined by reference to the information used to compile each RTB Rent Index quarterly report, is –
- in the case of counties Kildare, Meath and Wicklow or an LEA in any one of those counties, above the average rent in the State, excluding rents in the 4 Dublin Local Authority areas, or
- in the case of any LEA outside of the Greater Dublin Area (i.e. Dublin, Kildare, Meath and Wicklow), above the average rent in the State, excluding rents in the Greater Dublin Area.
Each RTB quarterly Rent Index Report includes a summary table of the data used to establish whether each Local Electoral Area fulfills the criteria for designation as a Rent Pressure Zone. This ensures transparency in relation to the position of individual areas in terms of average rent levels and increases.
The RTB Rent Index measures rent increases in LEAs using the 2019 boundaries for these LEAs and there is no specific measure to calculate rental increases broken down to any lower level (i.e. part of an LEA).
The Housing Agency and the RTB will continue to monitor national rents and if any LEA (in its entirety) in Galway or Roscommon meets the designation criteria, it will be designated as a RPZ.
The Residential Tenancies (No. 2) Act 2021 introduced measures in July 2021 to extend the operation of RPZs until the end of 2024. The Act provides that rent reviews outside of RPZs can, until 2025, occur no more frequently than bi-annually. This provides rent certainty for tenants outside of RPZs for a minimum 2 year period at a time.
The Act also introduced measures to better protect tenants with affordability by prohibiting any necessary rent increase in a RPZ from exceeding general inflation, as recorded by the Harmonised Index of Consumer Prices (HICP).
To address the rent affordability challenges building on foot of the unexpectedly fast rising inflation rate, as recorded by HICP (CSO data for December 2021 shows HICP inflation of 5.7% p.a.), the Residential Tenancies (Amendment) Act 2021 provides, from 11 December 2021, a cap of 2% per annum pro rata on rent increases in RPZs, where the inflation rate is higher. In effect, this will mean that rents in RPZs may only increase by a maximum of 2% per annum pro rata during times of higher inflation.
In all cases, section 19(1) of the Residential Tenancies Acts 2004-2021 prohibits the setting of a rent that exceeds market rent.
The solution to dealing with the rental market challenges is to provide for increased supply of homes. Housing for All – A New Housing Plan for Ireland does that through a range of interventions and unprecedented investment with in excess of €20 billion in funding over the next five years.
94. Deputy Francis Noel Duffy asked the Minister for Housing, Local Government and Heritage his plans for a redress scheme for homeowners impacted by defective properties; if he has given consideration to the Defective Dwellings Bill 2021 introduced at first stage to Dáil Éireann; and if he will make a statement on the matter. [3304/22]
Amharc ar fhreagra119. Deputy Neale Richmond asked the Minister for Housing, Local Government and Heritage if he will provide an update on his Department's work regarding pyrite and fire defects; and if he will make a statement on the matter. [3071/22]
Amharc ar fhreagraI propose to take Questions Nos. 94 and 119 together.
The Programme for Government sets out a number of commitments in respect of the important policy area of building defects, including support for the pyrite remediation scheme and the examination of defects in housing, having regard to the recommendations of the Joint Oireachtas Committee on Housing report, "Safe as Houses".
Firstly, in relation to the pyrite remediation scheme, the Pyrite Resolution Act 2013 provides the statutory framework for the establishment of the Pyrite Resolution Board and for the making of a pyrite remediation scheme to be implemented by the Board with support from the Housing Agency. It is a scheme of “last resort” applicable to dwellings, which are subject to significant damage attributable to pyritic heave. The full conditions for eligibility under the Scheme are available on the Pyrite Board’s website at www.pyriteboard.ie. Up to the end of 2021, 3063 applications have been received under the Scheme and 2530 dwellings have been included. Of the dwellings included, the works in respect of 2292 are complete with the rest at various stages of progress. A budget of €20 million has been provided for in 2022, with an expectation that approximately 270 homes will be remediated.
Separately, I have established a working group to examine defects in housing which has been meeting monthly since March 2021 (except for August), in addition to subgroup meetings. The group’s terms of reference, adopted in May 2021, are focused on fire safety, structural safety and water ingress defects in purpose built apartment buildings, including duplexes, constructed between 1991 and 2013. The full terms of reference of the Working Group are to:
1. Examine defects in housing having regard to the recommendations in Item 4 “Addressing the legacy of bad building and poor regulation” in Chapter 4 of the Joint Oireachtas Committee on Housing, Planning and Local Government report - ‘Safe as Houses? A Report on Building Standards, Building Controls and Consumer Protection’.
2. Establish the nature of significant, wide-spread fire safety, structural safety and water ingress defects in purpose built apartment buildings, including duplexes, constructed between 1991 – 2013 in Ireland through consultation with affected homeowners, homeowner representative organisations, owners’ management companies, relevant managing agents, public representatives, local authorities, product manufacturers, building professionals, industry stakeholders, insurance providers, mortgage providers and other relevant parties. Including such matters as:
- Identification and description of defect,
- Nature of defect – design, product, workmanship,
- Non-compliance with building regulations or actual damage,
- Severity/risk to life or serviceability of dwelling,
- Period of construction affected,
- Type of dwelling affected,
- Location of dwellings affected.
3. Establish the scale of the issue – estimate number of dwellings affected by the defects identified including those already remediated.
4. Consider a methodology for the categorisation of defects and the prioritisation of remedial action.
- In the case of defects with fire safety implications, consider how the framework for enhancing fire safety in dwellings can be applied to mitigate the risks arising from fire safety defects pending the remediation of defects and the Code of Practice for Fire Safety Assessment of Premises and Buildings, which is currently being developed by National Directorate of Fire and Emergency Management.
5. Suggest mechanisms for resolving defects, in the context of the legal rights, duties and obligations of developers, builders, building professionals, insurers, mortgage providers, building control authorities, fire authorities, owners’ management companies, owner occupiers, renters and landlords, including:
- Technical options for the remediation of dwellings,
- Efficient means of carrying out work,
- individual dwellings or whole building approach,
- routine maintenance/refurbishment or remediation,
- Structures or delivery channels needed to facilitate resolution – advice and support.
6. Evaluate the potential cost of technical remediation options.
7. Pursue options on possible financial solutions to effect a resolution, in line with the Programme for Government commitment to identify options for those impacted by defects to access low-cost, long-term finance.
8. Report to the Minister for Housing, Local Government and Heritage on the Examination of Defects in Housing.
In regard to the working group’s deliberations, the group is engaging with a wide range of interested parties. The first round of stakeholder consultation commenced in July 2021, with more detailed follow up and additional stakeholder consultations ongoing at present. In addition, preparations are being made to launch an online survey, in the next couple of weeks, seeking the views of homeowners, landlords, Directors of Owners’ Management Companies and Property Management Agents etc.
I am satisfied that the group is working effectively and efficiently on this complex matter and I look forward to a report later this year following completion of their deliberations. Once I receive the report I will give full consideration to its contents.
Finally, in response to the building failures that have emerged over the last decade, a three pronged Building Control Reform Agenda has been developed which focuses on ensuring strong and effective regulation in the building control system and the construction industry and on improving compliance with Building Regulations. The three elements include;
1. Reform of the Building Control process;
2. Building Control Management Project and establishment of a National Building Control Office; and
3. The publication earlier this month of the Regulation of Providers of Building Works Bill 2021. The legislation will put the Construction Industry Register Ireland (CIRI) on a statutory footing and aims to benefit consumers and the general public by giving those who engage a registered builder the assurance that they are dealing with a competent and compliant operator.
I thank the Deputy for introducing the Defective Dwellings Bill 2021 which I will continue to consider in the context of the ongoing implementation of the Building Control Reform Agenda and the upcoming report of the Working Group examining defects in housing.
95. Deputy Neale Richmond asked the Minister for Housing, Local Government and Heritage if he will provide an update on the roll-out of the cost rental scheme in local authorities; and if he will make a statement on the matter. [3072/22]
Amharc ar fhreagraMy Department is utilising the expertise of Local Authorities, the Land Development Agency (LDA) and Approved Housing Bodies (AHBs), to deliver Cost Rental projects in a variety of ways, in order to prove the concept of this new sector. This is in conjunction with the policy framework as to how the Cost Rental sector will operate in Ireland, as set out in the Affordable Housing Act 2021.
Over the period to 2030, it is intended that approximately 18,000 Cost Rental homes will be delivered. They will be provided by AHBs supported by Cost Rental Equity Loan funding (CREL), by Local Authorities through the Affordable Housing Fund and by the LDA on their portfolio of sites or through Project Tosaigh.
Cost Rental delivery will be informed by National Planning Framework priorities. It will be focused, at least initially, on densely populated urban areas where rental affordability pressures are particularly acute and where State resources can have the biggest impact. It is important that the State targets its affordability measures towards the parts of the country that are experiencing the most extreme affordability challenges. This is why my Department requested Housing Delivery Action Plans from each Local Authority before the end of December 2021 and will use the data submitted to target the most affected areas.
The implementation of initial Cost Rental projects is being supported by the CREL scheme, under which Government provides loans to AHBs to finance up to 30% of the capital costs for new cost rental homes, while the Housing Finance Agency is offering AHBs very competitive commercial debt funding to cover the remaining capital costs. €70 million was allocated to CREL in Budget 2022.
A total of 390 Cost Rental homes were approved under the first tranche of CREL funding in early 2021. These new homes are located in Dublin, the Greater Dublin Area and Cork, with cost-covering rents projected at a minimum of 25% less than comparable open market prices.
The first 25 Cost Rental homes to be designated in Ireland were completed by the Clúid AHB at Taylor Hill, Balbriggan and the first tenants moved into their new homes at Taylor Hill in August 2021. The cost-covering rents for these homes are approximately 40% below comparable open-market prices in the area, ranging from €935 per month for a two-bed terraced house to €1,150 for a four-bed detached house.
Another 40 Cost Rental homes have recently been completed at Barnhall Meadows in Leixlip, County Kildare, where all tenants have moved into their new homes. The cost-covering rents for these CREL-funded homes range from €900 per month for the two-bed homes to €1,250 per month for the three-bed homes, which are approximately 42% below market rent.
Overall, AHBs are targeted to provide some 700 homes through CREL in 2022 of a total target of 1,500 Cost Rental homes to be provided this year. In addition, another 50 two-bedroom Cost Rental apartments are in the final stages of completion at Enniskerry Road, Stepaside, Dún Laoghaire-Rathdown, by the Respond and Tuath AHBs, alongside 105 social housing units. This project is the result of an innovative collaboration between the two AHBs and of Dún Laoghaire-Rathdown County Council. The 50 purpose-built Cost Rental apartments are due to be tenanted over the next few weeks.
Dublin City Council is also progressing 375 Cost Rental homes on a site at Emmet Road, Inchicore (formerly St. Michael’s Estate) and the LDA is collaborating with Dún-Laoghaire Rathdown County Council to deliver over 300 cost rental homes on a site at Shanganagh, Shankill.
96. Deputy Thomas Gould asked the Minister for Housing, Local Government and Heritage if his attention has been drawn to the fact that the average local authority will pay over €300,000 to an organisation (details supplied) for mortgage-to-rent schemes over the next 25 years for properties the local authority will not own; and if he will make a statement on the matter. [62338/21]
Amharc ar fhreagraThe Mortgage to Rent (MTR) scheme introduced in 2012 is targeted at supporting households in mortgage arrears who have had their mortgage position deemed unsustainable by their lender under the Mortgage Arrears Resolution Process (MARP); agree to the voluntary surrender of their home and are deemed eligible for social housing support. The property in question must also meet certain eligibility criteria. The concept of the scheme is that a household with an unsustainable mortgage goes from being a homeowner to being a social housing tenant. The borrower surrenders their property to their lender who sells it to a MTR provider which can be either an Approved Housing Body (AHB) or since 2018 a private company, Home for Life Ltd. The AHB or local authority (in the case where the property is sold to a private company) becomes the landlord and the borrower remains in the property as a tenant paying a differential rent to the landlord based on his or her income.
To the end of September 2021, 1497 households with unsustainable private mortgages have completed the MTR scheme. The 1497 households in the scheme represent 2460 adults and 2091 children who have remained living in their homes and communities. The availability of the MTR scheme means that people can avoid losing their homes and the associated family upheaval. It also ensures that the State is not required to provide alternative housing for such households at a time when supply continues to be constrained.
In the initial years of the scheme, the scheme relied solely on AHBs to purchase from lenders, properties that have been voluntarily surrendered by borrowers. In the MTR scheme, AHBs fund the cost of purchasing units from a combination of low interest borrowings under the Capital Advance Leasing Facility (CALF) administered by my Department and only available to AHBs, and private finance or other borrowings. While the CALF debt is not required to be paid back to the State for a further 20-30 years, the private finance must be repaid over that period. This debt and the ongoing maintenance and management of the unit is financed from the income from the payment and availability payments made by the local authority and recouped from my Department which are related to the market rent of the property.
A Review of the MTR scheme for borrowers of commercial private lending institutions was published in February 2017. While there are obvious social and economic benefits to be derived from the MTR scheme, most significantly by facilitating individual households in mortgage arrears to remain in their home, the 2017 Review acknowledged that consideration needed to be given to the capacity of AHBs to intensify their involvement in the MTR scheme given the ambitious targets for the AHB sector around delivering new social housing supply.
The 2017 Review committed to exploring the potential of private institutional investment in MTR in order to allow the MTR scheme to deliver at scale. The capital outlay to purchase these properties could be provided through private finance to avoid competing for upfront exchequer capital resources within the overall funding available for social housing. An Expressions of Interest (EOI) Request issued in 2017 inviting parties from the private sectors to express their interest in participating in a new alternatively funded long-term MTR lease model. The National Development Finance Agency (NDFA) acted as financial advisor during the process, undertaking due diligence on the financial capacity of the proposers to commit to the long-term undertaking of the scheme. The outcome from the EOI process was that a new MTR alternatively funded lease model was announced in 2018 with Home for Life Ltd. as the participant from the private sector.
Under this alternatively funded model, Home for Life Ltd. purchases properties from lenders subsequent to their voluntary surrender by borrowers that meet the MTR eligibility criteria and then enters into a long-term 25 year lease arrangement with the local authority in whose area the property is situated for a defined term at an agreed rent, thereby enabling the borrower to remain living in their own home under a tenancy agreement with the local authority. Home for Life Ltd. is also responsible for managing and maintaining the property on behalf of the local authority in accordance with the lease requirements.
Regardless of who the property owner is under the MTR scheme, AHB or Home for Life Ltd., the local authority is obliged to meet the housing needs of social housing tenants indefinitely and beyond the term of the applicable lease arrangement.
The inclusion of a private entity, in addition to the existing AHBs who continue to be an integral part of the MTR scheme, gives opportunities to achieve greater scale and meet the long-term housing needs of a greater number of borrowers who have unsustainable mortgage arrears. Given the sizeable cohort of borrowers still in long-term mortgage arrears, all the MTR providers participating in the scheme are needed in order to meet the demand for the scheme.
97. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage if he will provide further details on the way that a person who has been through the insolvency process can access the local authority mortgage scheme. [3326/22]
Amharc ar fhreagraThe Local Authority Home Loan is a Government backed mortgage scheme for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build. A ‘Fresh Start’ principle also applies for applications to State affordable housing schemes.The following categories of persons are eligible to apply for the Local Authority Home Loan under the Fresh Start principle:
- Applicant(s) that previously purchased or built a residential property, but is divorced and has left the property and divested themselves of their interest in the property are eligible.
- Applicant(s) that previously purchased a residential property, but has been divested of this through insolvency or bankruptcy proceedings, are eligible to apply. The applicant must be discharged from bankruptcy proceedings. It should be noted that a return to solvency should not be interpreted as a return to creditworthiness, which is a separate assessment.The final decision regarding the Local Authority Home Loan application is made by the relevant Local Authority Credit Committee on a case by case basis.Further details can be found on localauthorityhomeloan.ie/
98. Deputy Louise O'Reilly asked the Minister for Housing, Local Government and Heritage if his attention has been drawn to the fact that county councils will not approve mortgages for persons who have been offered affordable housing; and if he will make a statement on the matter. [3352/22]
Amharc ar fhreagraThe Local Authority Home Loan is a Government backed mortgage scheme for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build. It is a successor to the Rebuilding Ireland Home Loan (RIHL), and the response below also applies to the RIHL.The Minister has no role in individual applications for the Local Authority Home Loan and cannot comment on individual cases. The final decision on Local Authority Home Loan applications is a matter for the relevant local authority. Decisions on all housing loan applications must be made in accordance with the Regulations establishing the scheme and the credit policy that underpins the scheme, in order to ensure prudence and consistency in approaches in the best interests of both borrowers and the lending local authorities.
The Local Authority Home Loan can be used for the purchase of homes through State schemes such as the Tenant Purchase Scheme and Affordable Housing Schemes, with the exception of the First Home Scheme. However, it should be noted that there is a creditworthiness assessment as part of the Local Authority Home Loan application process. Therefore it is possible that a person may be eligible for affordable housing but may not have the income or appropriate creditworthiness to obtain sufficient financing from the Local Authority Home Loan.
Further details can be found on localauthorityhomeloan.ie/
99. Deputy Éamon Ó Cuív asked the Minister for Housing, Local Government and Heritage when he intends to increase the income limits for eligibility for local authority housing; and if he will make a statement on the matter. [3276/22]
Amharc ar fhreagra122. Deputy Matt Carthy asked the Minister for Housing, Local Government and Heritage his plans to review and increase income thresholds for inclusion on social housing waiting lists. [3201/22]
Amharc ar fhreagra127. Deputy Brendan Smith asked the Minister for Housing, Local Government and Heritage when the income eligibility limits for social housing will be increased for areas such as counties Cavan and Monaghan given that present limits are unrealistic; and if he will make a statement on the matter. [3337/22]
Amharc ar fhreagraI propose to take Questions Nos. 99, 122 and 127 together.
Housing for All – A New Housing Plan for Ireland was published in September 2021 and, as part of a broad suite of social housing reforms, committed to reviewing income eligibility for social housing.The review, which examined inter alia the efficiency of the current banding model and income limits applicable to local authorities, was completed in Q4, 2021. I expect to make a decision on proposed changes and recommendations shortly.
100. Deputy Pádraig O'Sullivan asked the Minister for Housing, Local Government and Heritage the number of social houses that were built, allocated and delivered by approved housing bodies in 2020 and 2021; and if he will make a statement on the matter. [3192/22]
Amharc ar fhreagraMy Department supports local authorities to engage with Approved Housing Bodies (AHBs) in the delivery of housing. There are a range of funding and delivery mechanisms available to local authorities to deliver social housing supports in partnership with AHBs through capital and current funding. The funding under these programmes is provided directly to local authorities who, in turn, advance the funding to AHBs, as appropriate.
In 2020, 3,312 homes were delivered by AHBs through Build, Acquisition and Lease programmes. This included 2,472 new build social housing homes. In 2021, the statistics are available to the end of Quarter 3 2021. In the first 9 months of 2021, 2,061 homes were delivered by AHBs through Build, Acquisition and Lease programmes. This included 1,578 new build homes. My Department publishes comprehensive programme level statistics on social housing delivery for each local authority on a quarterly basis. These statistics include details of homes delivered by AHBs and are available at the following link: www.gov.ie/en/collection/6060e-overall-social-housing-provision/
The allocation of homes to households on a social housing waiting list by either AHBs or local authorities is a matter for individual local authorities in line with their scheme of housing allocations.
101. Deputy Claire Kerrane asked the Minister for Housing, Local Government and Heritage if he will engage with local authorities on the issue of vacant properties which are owned by them; and if he will make a statement on the matter. [3331/22]
Amharc ar fhreagraThe management and maintenance of local authority housing stock, including pre-letting repairs to vacant properties, the implementation of a planned maintenance programme and carrying out of responsive repairs, are matters for each individual local authority under Section 58 of the Housing Act 1966.
Notwithstanding this, Exchequer funding has also been provided through my Department's Voids Programme to support local authorities in preparing vacant properties for re-letting. This funding was introduced in 2014 to tackle long term vacancy and is now increasingly targeted to support authority's to ensure minimal turnaround and re-let times for vacant stock.
In the period 2014 – 2021, Exchequer funding has been provided in excess of €260 million to remediate 18,527 vacant properties. There has been extensive funding provided over the last two years under the Voids programme which not only catered for standard relets but also for vacant properties requiring more extensive works prior to relet. This resulted in over 6,000 vacant homes being remediated in the period 2020-2021 at a cost of almost €90 million.
My Department will continue to support local authorities in their work in this area. As in previous years, all local authorities will be asked to make a funding application under the 2022 programme in respect of their vacant stock which will receive due consideration and funding allocations will issue to all local authorities in due course. It is up to each local authority to complete their programme of works based on their individual allocation and targets.
It should also be noted that local authorities will always have a level of vacancy in their housing stock. This will fluctuate over time as the tenancy surrender and re-letting of stock is an ongoing process. The below refers to the reasons for vacancy but this is not an exhaustive list.
- For demolition and major regeneration
- Not for letting – earmarked for sale
- Dispute/legal issues holding up tenancy
- 2nd hand acquisition pending refurbishment
- Repaired and awaiting letting
- New build turnkey awaiting letting
- Offered and not accepted.
Finally, my Department and local authorities are working to transition from a largely response and voids based approach to housing stock management and maintenance to a planned maintenance approach. This will require the completion of stock condition surveys by all local authorities and the subsequent development of strategic and informed work programmes in response. My Department will support these work programmes by ensuring that the funding available under the various stock improvement programmes are aligned with this approach.
Question No. 102 answered with Question No. 85.
103. Deputy Colm Burke asked the Minister for Housing, Local Government and Heritage the rate of expenditure of funding from his Department for the provision or enhancement of housing for persons with a disability; and if he will make a statement on the matter. [3193/22]
Amharc ar fhreagra286. Deputy Colm Burke asked the Minister for Housing, Local Government and Heritage the rate of expenditure of funding from his Department for the provision or enhancement of housing for persons with a disability per local authority; and if he will make a statement on the matter. [3210/22]
Amharc ar fhreagraMy Department provided funding of €31 million in 2021 facilitating over 3,800 grants under the Housing Adaptation Grant for People with a Disability scheme, to assist people in private houses to make their accommodation more suitable for their needs. Details of the allocations and drawdowns for all local authorities up to 2021, are available on my Department's website at the following link:
www.housing.gov.ie/housing/statistics/social-and-affordble/other-local-authority-housing-scheme-statistics.
Funding for housing for disabled people is also integrated in the investment under the social housing capital delivery schemes, such as, the Capital Assistance Scheme (CAS), the Social Housing Capital Investment Programme (SCHIP) and the Capital Advance Leasing Facility Scheme (CALF) by local authorities and Approved Housing Bodies. The provision of housing for disabled people is therefore primarily provided as part of broader investment programme in accordance with Government policy that housing for people with a disability must be provided in mainstream housing. My Department does not have collated figures on the funding related to disabled people under these broader schemes and programmes.
Since 2011 housing for disabled people has been addressed in a dedicated joint Strategy between my Department and the Department of Health. I launched a new joint National Housing Strategy for Disabled People (NHSDP) 2022-2027 on 14 January 2022, together with my colleagues Mr. Darragh O'Brien T.D. and Ms. Anne Rabbitte, T.D., Minister of State with responsibility for Disability (available at
www.gov.ie/en/press-release/1c6c5-new-national-housing-strategy-for-disabled-people-2022-2027-launched)
The new Strategy sets out the vision for the cooperation and collaboration of Government Departments, state agencies and others in delivering housing and the related supports for disabled people over the next five years. This new Strategy will operate within the framework of Housing for All – A New Housing Plan for Ireland which is committed to ensuring that affordable, quality housing with an appropriate mix of housing design types provided within social housing, including universally designed units, is available to everyone in Irish society, including those with disabilities and older people. Preparation of an Implementation Plan for the Strategy will begin in the first quarter of 2022 with a target for completion by the second quarter.
104. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage the status of the ongoing negotiations between the various parties on the creation of a single water utility. [3327/22]
Amharc ar fhreagraThe Policy Paper on Water Sector Transformation (February, 2021) sets out clearly the approach planned by Government to proceed with the integration of public water services within Irish Water's organisation structure and thereby deliver a publicly owned, stand-alone, regulated, national water utility tasked with modernising and transforming the delivery of water services in Ireland.
Engagement between the parties, facilitated by the Workplace Relations Commission, is continuing with the aim of reaching a collective agreement on a Framework for the future delivery of water services. The Government believes it will be possible to reach a collective agreement which addresses the interests and concerns of all parties.
Question No. 105 answered with Question No. 83.
