- Report shows progress in delivering affordable housing, construction sector capacity and innovation and planning reforms
- Positive indicators of housing construction
The Government today published the third quarterly progress report under Housing for All, A New Housing Plan for Ireland.
Quarter 1 saw the implementation of measures to address affordability, capacity and innovation in the construction sector, vacancy and homelessness, along with progress on a number of fundamental reforms, including planning and viability.
There were also positive indicators of construction activity. Commencement notices for over 33,000 homes in the 12 months to February were received. Almost 43,000 units were granted planning permission in 2021.
While the situation in Ukraine is leading to challenges in the construction sector, such as increased inflationary and supply chain pressures, the situation underscores the importance of the ongoing focus on delivery of Housing for All, to increase the supply of homes and reform our housing system. The plan provides that €20 billion in State funding will be available for investment in housing to the end of 2025.
Progress in Q1 2022 included:
Affordability
- Applications have been received for homes being provided under the Local Authority Affordable Purchase Scheme. Three-bed homes in South Dublin are being priced at €245,600, which reflects a 20% reduction on open market values.
- Cost Rental delivery scaling up. In addition to the tenancies provided in Q4 2021, tenants are now moving into Cost Rental homes at Enniskerry Road, Dún Laoghaire-Rathdown and a number of schemes will come on stream in Quarter 2 2022.
- Local Authority Home Loan – Open for applications nationwide - €250m available for 2022.
- LDA submitted planning applications for c.1,800 homes, for social and affordable homes on the site of the Central Mental Hospital in Dundrum and at Castlelands, Balbriggan.
Construction Sector Capacity/Innovation
- ‘Built to Innovate’ Initiative launched – allowing Irish homebuilders to avail of Enterprise Ireland schemes and grant supports that promote innovation and productivity.
- Development of a robust and compelling pitch to encourage, through the IDA, the participation of innovative international construction companies in the Irish market.
- Future Building initiative to address construction sector capacity issues.
- International Recruitment initiatives underway.
- Selection process for host organisation for a new Construction Technology Centre (CTC) to drive adoption of innovation and technology in residential construction. Host organisation to be selected this month. Vacancy
- Extended Planning Regulations to allow a change of use of certain vacant commercial premises to residential use, including former pubs.
- Town Centre First policy – specific measures to tackle vacancy and dereliction and promote residential occupancy in rural towns and villages.
- Croí Cónaithe (Towns) Fund – terms of the fund to be launched in the coming weeks – the fund will aim to support people to build their own homes or refurbish vacant properties for owner occupation.
- €12m in funding for the Repair and Lease Scheme. Target of 120 homes in 2022. 71 through renovation of a former convent in Waterford City Centre.
- Launch of the National Home Energy Upgrade Scheme, which will also support the refurbishment of older vacant private housing stock. Eradicating Homelessness
- New Housing First National Office established, which will help deliver an additional 1,319 Housing First Tenancies in the period to 2026.
- Public Consultation on a new Youth Homelessness Strategy. Supporting Social Inclusion
- New National Housing Strategy for Disabled People published.
Commenting on the publication of the report, the Taoiseach, Micheál Martin TD said:
“Delivery of Housing for All is now more important than ever as we respond to the grave humanitarian crisis brought about by Russia’s invasion of Ukraine.
Government is committed to increasing the supply of housing. Recent indicators of construction activity have been positive and good progress has been made during Quarter 1 on measures to improve affordability, bolster capacity in the sector and address vacancy and homelessness.
We recognise that the wider implications of the conflict in Ukraine will present challenges and Government is keeping under close and active review the challenges arising for the construction sector and the housing market. We must now redouble our efforts to deliver Housing for All at scale and pace, increasing housing supply across all tenures and ensuring a sustainable housing system for the future”
The Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar TD said:
“The Government is supporting the construction industry by encouraging innovation and productivity, as set out in Housing for All. This is more important than ever in response to rising construction costs.
Enterprise Ireland grants and supports are now available to Irish homebuilders and the establishment of a new Construction Technology Centre is on track. We are also bolstering the capacity of the sector to ensure we have the workers we need to deliver on the ambition of Housing for All.”
The Minister for the Environment, Climate, Communications and Transport, Eamon Ryan TD, said:
“One of the issues that has come to light from the war in Ukraine is the importance of energy security. In Q1, the Government approved a range of new measures that make it easier and more affordable for homeowners to undertake a range of home energy upgrades.
These include the new National Home Energy Upgrade Scheme, with increased grant levels of up to 50% of the costs of a typical deep retrofit. A grant of 80% for attic and wall cavity insulation is also available now, to help people save energy and money immediately.
Measures that improve Ireland’s energy efficiency will also support the development of Ireland’s Circular Economy, by reducing our dependence on the extraction of natural resources, many of which have to be imported. By conserving and re-using the materials already in our economy, Ireland can reduce its exposure to complex supply chains and the type of supply shocks that we’re seeing at the moment.
Housing for All will deliver a housing system that is sustainable into the future.”
Commenting on progress since publication of the Plan, the Minister for Housing, Local Government and Heritage Darragh O’Brien TD said:
“The Government are responding in an appropriate and compassionate manner to the war in Ukraine. We continue to witness the results of the barbaric Russian invasion and we are stepping up to protect those fleeing their home and to provide them with accommodation. At the same time the Government will protect Housing for All and its current pace of delivery to the greatest extent possible. Housing for All offers stability during this time of great uncertainty. It is a Plan with clear ambitions and targets and it is fully funded.
“It has been a positive quarter in terms of delivering and progressing affordable housing, a key theme of Housing for All. Local authorities have called for applications for affordable purchase schemes in a number of counties. We are delivering cost rental homes in a number of locations with more to come on stream in the coming months. The Land Development Agency, which will be central to delivering affordable housing, has lodged planning applications for a couple of significant projects.
“These affordable measures will be complemented in the coming months with the launch of the ‘First Home’ shared equity scheme, which will help first-time buyers purchase new homes.
“Another major focus in the coming months will be tackling vacancy. At a time of high housing need, it’s essential that existing vacant homes are brought back into productive use. The Government, local authorities and others will intensify efforts to ensure vacant housing stock is brought back into use. Progressing the Croí Connaithe (Towns) Fund will be central to this.”
Ends
Notes to editor
- ‘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.’
- The Housing for All – Q1 2022 Progress Report can be read here: https://www.gov.ie/en/collection/9d2ee-housing-for-all-quarterly-progress-reports/
- ‘Housing for All’ contains four pathways:
- Pathway to Supporting Homeownership and Increasing Affordability
- Pathway to Eradicating Homelessness, Increasing Social Housing Delivery and Supporting Social Inclusion
- Pathway to Increasing New Housing Supply
- Pathways to Addressing Vacancy and Efficient Use of Existing Stock
These four pathways are underpinned by a range of actions to enable a sustainable housing system.
- ‘Housing for All’ contains the following supply targets:
- 33,000 new units, on average, per annum up to and including 2030. This will include, on average, 10,000 social housing units, 4,000 homes for Affordable Purchase, 2,000 Cost Rental homes and 17,000 private homes.
- Over the lifetime of the plan (to the end of 2030) the 300,000 required homes are expected to consist of: 90,000 social homes; 36,000 Affordable Purchase homes, 18,000 ‘Cost Rental’ homes and approximately 156,000 private homes.
- The State land bank will provide land to bring forward up to 15,000 units and the State will fund local authorities for land acquisition. Each local authority has been given Housing Supply Targets.
- A table of yearly targets, broken down by tenure type, is contained in the plan.
- This is the third Progress Report under the Housing for All Plan showing continued progress towards increasing housing supply and affordability, whilst fundamentally reforming our housing system to ensure it is sustainable into the future.
- So far, of the 213 actions in Housing for All, 135 have been delivered or progressed. Of the 20 measures due for delivery in Q1 2022, 12 were delivered on schedule, giving a delivery rate of 60% this quarter. Whilst the full implementation of 8 measures has been delayed, significant progress has been made on the majority of these actions. 3 of these delayed measures have a revised target date of Q2 2022 and will be reported on in the next progress report. The overall delivery rate for measures due to date under Housing for All is 70%.
- Early indicators suggest a strong pipeline of housing for 2022, with 33,006 commencements in the 12 months to February 2022 (highest rolling 12-month total since 2008), and 42,991 units granted planning permission in 2021, representing a four-fold increase on 2011.
- The humanitarian response to the Ukrainian crisis presents challenges, notably in terms of finding sufficient and suitable accommodation for the Ukrainian families arriving here. In addition to hotels and other serviced tourist accommodation, and drawing on the generous accommodation pledges made through the Irish Red Cross, the Government is identifying State-owned or Local Authority properties which may be suitable for immediate and longer-term accommodation needs. A range of solutions are being evaluated, including the expansion and acceleration of measures in Housing for All designed to make optimal use of existing stock