The Government today published the progress report for Quarter 4, 2022 under Housing for All, A New Housing Plan for Ireland.
In the first full calendar year of the plan, almost 30,000 (29,851) new homes were completed, exceeding the target by over 20%. Construction started on 27,000 new homes in the year, the second highest since 2014. Strong activity has also been seen in the area of mortgage approvals, particularly for First Time Buyers (FTB), with recently published data showing FTB volumes at their highest levels since 2007.
The supply of homes is increasing despite considerable challenges in the external environment. Since the launch of Housing for All, over 41,456 new homes have already been built.
Actions during Quarter 4 include:
- Increased funding through the Affordable Housing Fund and the Cost Rental Equity Loan to make cost rental homes available at affordable prices.
- Help-to-Buy Scheme extended to the end of 2024 and consideration being given to expansion of the First Home Scheme to cover self-build housing. The Scheme, operational since July 2022, will support the purchase of 2,000 homes by eligible buyers in 2023.
- Funding of €94m provided to local authorities to address legacy land debts. Provision of this funding linked to the immediate development of a housing proposal, a commitment to use Modern Methods of Construction and construction to start in 2023/2024. Overall, over 30 sites have been identified for acceleration, involving over 1,500 new social homes.
- Launched Construct Innovate, Ireland’s Construction Technology Centre, to accelerate research and innovation in the construction sector.
- Publication of Report on the Analysis of Skills for Residential Construction and Retrofitting 2023-2030, along with Action Plan to attract and retain the necessary workforce – identified need for almost 51,000 new entrantsto meet the Government’s housing and retrofitting targets over the period to 2030.
- Developed Vacant Homes Action Plan, with several incentives available if you are turning a vacant house or building into your permanent home.
- €500 Rent Tax Credit for rent paid in 2022 and protection for renters by deferring any ‘no fault’ tenancy terminations from taking place this winter.
- Pre-Letting Expenses for landlords increased from €5,000 to €10,000, the length of time that a property must be vacant to be eligible reduced from 12 to 6 months.
- Publication of draft Residential Zoned Land Tax Maps as part of the implementation of the Residential Zoned Land Tax (RZLT).
In addition, significant reform is underway including through the publication of a new Planning and Development 2023 Bill and approval by Government on General Scheme of Land Value Sharing and Urban Development Zones Bill.
While progress has been strong, 2022 also saw the emergence of unprecedented challenges, leading to high inflation and rising interest rates. These issues are having a negative impact on the financial viability of home development and Government is focused on solving this through schemes such a Project Tosaigh and Croí Cónaithe (Cities) Scheme.
A new call for proposals was launched under Project Tosaigh in Q4 and the evaluation of responses is nearing completion, to be prioritised in accordance with 2023 and 2024 figures.
The Housing Agency is now concluding appraisals of projects with the potential to build up to 2,100 apartments under the Croí Cónaithe (Cities) Scheme, following the European Commission’s approval of Ireland’s State aid application for the scheme. Letters of approval will now be issued to successful applicants from the first call.
Commenting on the publication of the report, the Taoiseach, Leo Varadkar TD said:
“Government is fully committed to reversing the trend of falling home ownership and rising homelessness. We are determined to make home ownership a reality for the many again.
“This can only be achieved by increasing the supply of homes of all types. We have made good progress in the first full year of the Housing for All plan, and we will continue to work with stakeholders to accelerate and enhance the plan as we implement it. It is a comprehensive plan and, working with the Minister Darragh O'Brien, I will do all I can to drive it forward.
“We need new and innovative ways to supply homes; no option will be taken off the table without due consideration.
“We must apply the same spirit of determination, action and immediacy that we saw during the pandemic, to solving this social crisis.”
The Tánaiste, Micheál Martin said “Homelessness is one of the greatest challenges facing our society today and a serious concern for Government. Though actions implemented in Quarter 4 such as the short-term ban on no-fault evictions, and actions taken to address the fundamental shortage of housing in our country, particularly social and affordable housing, we will turn the tide and provide homes for those in most need in our society”
The Minister for Environment, Climate and Communications and Minister for Transport, Eamon Ryan said: “The adoption of Modern Methods of Construction has the potential to significantly improve construction sector productivity, innovation, sustainability and costs. In December, the Government launched Construct Innovate, Ireland’s Construction Technology Centre, to accelerate research and innovation in the construction sector. Already, a series of research projects are underway. The Centre is just one of several initiatives that will further support the use and development of Modern Methods of Construction in the delivery of Housing.”
The Minister for Housing, Local Government and Heritage, Darragh O’Brien TD added: “We are making significant progress in tackling vacancy and dereliction. Last week I launched the Vacant Homes Action Plan which details the upcoming measures that will bring even more vacant properties back into use. The new €150 million URDF call for proposals will help local authorities transform vacant and derelict buildings and sites in order to revitalise and regenerate our cities and large towns, and deliver more housing”.
Notes to Editor
Housing for All
- ‘Housing for All’ is the Government’s housing plan for Ireland to 2030. It can be read at www.gov.ie/housingforall. The plan’s overall objective is: ‘Everyone in the State should have access to a home to purchase or rent at an affordable price, built to a high standard and in the right place, offering a high quality of life.’