'We are in a housing crisis': Government announces new €4 billion a year housing plan for Ireland 

"We are in a housing crisis. There are not enough homes being built and a generation of people are demoralised and close to despair on the issue."

Those were the words of the Taoiseach Micheál Martin as the Government announced details of a new housing plan for Ireland today which aims to increase the supply of housing to an average of 33,000 per year over the next decade.

Housing for All - a New Housing Plan for Ireland provides for the development of a mix of social, affordable and private housing for sale and rent, which is supported by over €4 billion in guaranteed State funding every year, the highest ever level of Government investment in building social and affordable housing.

The plan also includes measures to support availability of the land, workforce, funding and capacity to enable both the public and private sectors to meet the targets.

The plan is based on four pathways namely to support homeownership and increase affordability; to eradicate homelessness, increase social housing delivery and support social inclusion; to increase new housing supply, and to address vacancy and make efficient use of existing stock.

Housing plan initiatives 

It includes a number of initiatives including the delivery of over 90,000 social homes by the end of 2030, including an average new-build component of over 9,500 social homes by the end of 2030.

Also included is an expansion in access to affordable homes to buy, through an enhanced Local Authority Home Loan Scheme, which will have an increased income ceiling for single people of €65,000 and lower loan interest rates. 

Measures to reduce construction costs and support innovation in residential construction will also be introduced.

Also included is plans for the delivery of up to 15,000 residential units, which will help to revitalise urban centres, through the provision of State land to the Land Development Agency.

The plan includes a list of state lands to be transferred to the Agency including lands at the Cork docklands, Cork port, in Kilbarry and Wilton. 

Speaking at the launch yesterday, the Taoiseach Micheál Martin said that Ireland is in a housing crisis.

“There is scarcely a family in the country untouched by the crisis and if we do not recognise the scale of the challenge and respond in kind, it has the potential to be profoundly destabilising for our country”.

He said that many people are struggling to access housing, whether they are trying to buy or rent.

“Few things are more fundamental to us than having somewhere to live. Through this policy the Government is demonstrating its commitment to build the required amount of housing, of different tenures, to a high standard, and in the right location, for people of all circumstances. 

"Today we are announcing the most ambitious programme of social and affordable housing delivery in the history of the State, with 90,000 social homes and 54,000 affordable homes to be provided by the end of 2030. We will also continue to support our most vulnerable by significantly increasing the number of tenancies for those experiencing homelessness and who have more complex needs. Housing for All will provide the basis for a long-term sustainable housing system for this and future generations..”

Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar TD added: “Before the pandemic, we were building 20,000 new homes per year and were expecting that to rise to 25,000 in 2020 and 30,000 this year. Housing for All will bring us to at least 33,000.

“We all know construction costs are too high in Ireland and that this ultimately affects the price of homes. High costs also damage our economic competitiveness. We need to strengthen the residential construction supply chain and modernise construction methods. Housing for All will enhance productivity and innovation in construction to overcome the challenges that exist.”

Environmental sustainability

The Minister for the Environment, Climate, Communications and Transport, Eamon Ryan TD, emphasised the importance of environmental sustainability in our planning and housing decisions.

“Sustainability will be at the heart of future development, including housing. That’s why this policy emphasises compact growth, with future housing to be primarily based in settlements. Higher population densities will have upshots such as minimal transport demand and shorter travel distances. Initiatives such as Urban Development Zones will result in plan-led delivery of residential and urban development. These will also support compact growth. The retrofitting of 36,500 local authority-owned properties and the introduction of minimum BERs for rental properties will help move our existing housing stock to a low-carbon future. This will assist with delivering on our national retrofit targets. Moreover, the focus on the circular economy, waste reduction and keeping materials in use throughout the construction process will reduce resource consumption, while also delivering cost reductions.” 

Commenting on the plan, the Minister for Housing, Local Government and Heritage Darragh O’Brien TD said: “Today we are launching a plan that will see a radical shift towards more affordable homeownership and secure renting. Our measures for affordable purchase, which include significant State investment, will provide opportunities for those who are losing all hope of ever owning their own home. Our changes to the rental sector, including the supply of 2,000 ‘Cost Rental’ homes, on average, every year, and new protections will make renting more affordable and secure for many.

“The planning changes we are announcing today, including the concept of the State sharing in the increase in value of land zoned for housing, mark a radical departure in how land earmarked for housing is managed, in line with the aspirations of the Kenny Report of several decades ago.”

Another 'Rebuilding Ireland'?

Cork Sinn Féin TD Donnchadh O Laoghaire was critical of the plan which he described as "just another 'Rebuilding Ireland' under a different name"

He added: “It is clear that there will be little, if any, increase in direct capital investment by Government in social and affordable homes between now and 2025. This means rents and house prices will continue to rise, and supply will continue to lag behind demand.

“There is nothing in this plan to tackle rising rents, however there is plenty for developers including the controversial shared equity loan scheme, which will inflate house prices further.

He said that Sinn Féin has a plan to ensure the delivery of at least 20,000 social, affordable rental and affordable purchase homes a year through new-build, acquisition and refurbishment of vacant and derelict stock.

“This plan is a huge missed opportunity and the reality is it will do very little to help those currently struggling to rent or buy.

"I had hoped for something far better for renters and those looking for a permanent home in Cork but i cannot say I’m encouraged by what’s in this document, it’s not the change in direction we needed to make housing affordable."