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Minister for Finance, and Public Expenditure and Reform, Paschal Donohoe, received Cabinet approval on Tuesday for the publication, in the coming days, of the Home Building Finance Ireland (HBFI) Bill 2018. This will give effect to the measures announced in October as part of Budget 2018 for the establishment of a new body; the purpose of which is to increase the supply of financing for residential developments within the State. Minister Donohoe was joined today by the Minister for Housing, Planning and Local Government, Eoghan Murphy, in making the announcement.

HBFI will receive funding of up to €750 million from the Ireland Strategic Investment Fund (ISIF) from which it will lend, on commercial terms, to developers who may be experiencing difficulty obtaining adequate funding for commercially viable residential projects. With this funding it is estimated that HBFI could have capacity to fund in the region of 6,000 homes in the coming years, making a significant contribution to addressing the current shortfall in residential supply in the market.

Passage of the legislation is a priority for the Government and the Bill will now commence through the Houses of the Oireachtas.

Minister Donohoe stated

I welcome the publication of the Home Building Finance Ireland Bill as a measure to increase financing for much needed residential developments. Not only will HBFI contribute to addressing the current shortfall in the supply of new housing, but it has the potential to benefit small to medium-sized developers with viable sites in locations that are currently not receiving adequate investment.

HBFI will be funded through €750 million, which is being made available by Ireland Strategic Investment Fund (ISIF), which is managed and controlled by the NTMA. It will be established as a temporary measure to address a shortage of funding in the market and its continued operation will be reviewed regularly. It is envisaged that HBFI will commence lending activity by the end of 2018, with the capacity to have a significant impact on residential market property development across the coming years.

Minister Murphy, added: 

HBFI will play an important part of the Government’s overall strategy to increase the supply of new housing within the State. Together with the action plan laid out in Rebuilding Ireland, I am confident that HBFI will help provide a further impetus for the continued increase in home building across the country.