The Government today published its first annual update of Housing for All.
Under the plan, supply of new homes is increasing with 20,807 new homes completed in the first three quarters of the year, more than the whole of 2021 (20,560) or any other year since the CSO series began in 2011.
The Government is confident that the 2022 Housing for All target of 24,600 new homes will be exceeded.
Homes are being provided in the right places, in line with our compact growth objectives, which are aimed at building sustainable and vibrant communities across the country.
Apartment completions in Q3 2022 increased by over 153% from the same quarter last year, and close to half of new homes completed in the quarter were part of a multi-home development.
Despite the impact of cost inflation and the war in Ukraine, there continues to be a strong pipeline, with building started on almost 21,000 new homes between the months of January and September 2022, and planning permissions granted for 19,837 homes during the first half of the year.
Along with increasing the supply of homes, the Government has introduced a range of affordable purchase and rental measures and legislated for long-term reforms of the housing and planning systems.
Significant initiatives introduced since the Plan was published include:
- The First Home Scheme, introduced in July 2022, to make it easier for first-time buyers to afford a new home. Since its introduction, over 800 applications have been received with 606 approvals issued to date.
- The Local Authority Home Loan, which enables successful applicants to borrow up to 90% of the market value of the property.
- Delivery of Cost Rental homes with State-backed rents at least 25% below what they would be on the private market. In 2023, a further 1,850 Cost Rental homes are to be delivered.
- An extension of the Help to Buy Scheme to the end of 2024. This Scheme has helped over 35,000 to buy their first home.
- New protections for renters including a cap on allowable rent increases at the Harmonised Consumer Index of Prices or 2% (whichever is the lower) and a temporary ban on evictions during the winter months;
- The delivery of 9,183 social homes in 2021.
- Implementation of a new Housing First National Implementation Plan 2022-26, which will provide 1,319 new supported tenancies for people who are long-term homeless and who have complex additional needs. 680 individuals were in Housing First tenancies by the end of 2021.
- The introduction of a Ready to Build scheme, funded through the Croí Cónaithe (Towns) Fund.
- To tackle vacancy, a new Vacant Property Refurbishment Grant; a new Town Centre First policy that includes initiatives to revitalise towns, and changes to the Fair Deal Scheme, to remove disincentives to renting or selling vacant property;
- Establishment of a new Construction Technology Centre and other policies to promote the widespread adoption of Modern Methods of Construction;
- Construction sector recruitment initiatives including the new ‘Future Building’ initiative to spearhead activation and recruitment and additional investment to increase the availability of apprenticeships and training;
- A new Croí Cónaithe (Cities) Fund to address the financial gap between the construction cost and market price for apartments, designed to deliver 5,000 apartments in our city centres;
- The LDA’s Project Tosaigh Scheme, aimed at accelerating delivery of homes on sites with full planning permission which would not otherwise be developed due to financing or other constraints;
- More resources provided to local authorities to deliver social and affordable housing
The Government acknowledges that there are challenges in the housing market and it is working to address them. In the year since the publication of Housing for All, we have experienced unprecedented difficulties arising from the war in Ukraine, the energy crisis, and rising interest rates.
The updated Plan sets out how the Government is responding to these changed circumstances and ensuring focus remains on delivery of homes at scale and speed to resolve the crisis.
It includes new and updated measures which will:
- Reduce the cost of construction;
- Make our planning system more transparent and user-friendly;
- Improve the rental market;
- Increase student accommodation;
- Deliver more social and affordable homes on State Lands;
- Revitalize our towns and villages;
- Boost productivity through accelerating the adoption of Modern Methods of Construction;
- Increase the construction sector labour force; and
- Ensure we produce a sufficient number of homes in the future.
The Plan provides certainty and stability for our citizens and for the many stakeholders who are engaged in the delivery of homes.
Commenting on the publication of the updated Housing for All Action Plan, Taoiseach Micheál Martin said:
“Housing for All provides a comprehensive plan which is working. We are building and delivering increasing numbers of new homes, while fundamentally reforming our system of housing.
Despite the unprecedented challenges arising from the war in Ukraine, we will exceed the target to deliver 24,600 new homes in 2022. And we have now set out an updated set of actions across multiple Departments and Agencies to build on the progress to date.”
The Tánaiste Leo Varadkar said: “This Government believes in home ownership. Our absolute focus is on increasing the supply of new homes, as quickly as possible so that this generation has the opportunity to buy or rent at more affordable prices. Before the pandemic, we were building 20,000 new homes per year and that number continues to rise. We are helping the construction industry by encouraging innovation and productivity to boost supply, and ensuring the industry has the workers it needs to get new homes built more quickly and to the highest standard.”
Minister Ryan commented that: “There are many synergies between Housing for All and our climate objectives. Housing for All will deliver a housing system that is sustainable into the future. To do that we need transport orientated development and compact urban growth. We also need to make efficient use of our existing housing stock. This updated Action Plan ensures that we remain focused on all of these objectives.”
Commenting on the key areas of focus for 2023, the Minister for Housing, Local Government and Heritage, Darragh O’Brien TD said: “Housing for All has delivered on a number of measures to make homes more affordable, protect renters, tackle vacancy, and bridge the delivery gap between the cost of construction and market price. But we recognise we must do more to address external challenges and maintain the current momentum to deliver more homes. The updated Action Plan contains new and updated actions to ensure we deliver on the ambition and targets in Housing for All.”
ENDS
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.’
- ‘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.