Housing for All: Increasing housing supply

“In my view, housing is the single most urgent and important social issue facing our country at this moment in time. And it is one that I am determined that we, as a government, get to grips with. Access to housing is not just about the immediate, material need for a roof over your head – although the absolute tragedy of homelessness is one that we are determined to eliminate by the end of the decade – it is about much more than that. Access to housing is fundamental to our security, stability, health and progress as a nation. When a family has a secure tenure in a safe and comfortable home, children have the peace and potential to do better at school, and to develop their wider personality and sense of identity. Parents have the freedom and confidence to engage with, and help develop, their local communities and build sporting, artistic and cultural connections. Communities of secure, engaged and confident households are safer, more enriched and happier places to live. A country of engaged and contented communities is a more attractive place to visit, establish a business, or invest in. And greater prosperity means more investment in education and healthcare, more opportunities for our young people and better outcomes for everyone. It all comes back to housing…” An Taoiseach, Michéal Martin TD

Earlier this week, the Government launched the long-awaited Housing for All plan, which can be accessed in full through the Department of Housing website: https://www.gov.ie/en/publication/ef5ec-housing-for-all-a-new-housing-plan-for-ireland/#

Delayed since spring, this €40 billion strategy is targeted at easing Ireland’s current housing crisis through a seemingly-thorough 213-point action plan. While the headline figure is €40 billion, or €4 billion per year, in reality only half of this is under the control of the current Government.

In terms of housing numbers, the headline figure is 310,000 by 2030, or an average of 32,800 per year. The intended annual delivery is 10,000 social housing units, 4,000 homes for affordable purchase, 2,000 cost-rental homes and 17,000 private homes. This is a significant ramping up in expected outputs for both the public sector and the private sector.

The Housing for All plan provides for a new vacant-site tax to replace the current vacant-site levy, with the aim of encouraging landowners with grants of planning permission to activate the permission and build homes. Controversially, the Government did not introduce a vacant-homes tax, however, this has been earmarked for implementation after next year, once data has been extracted from the newly revamped Local Property Tax.

While consumers will be focused on the numbers, the industry will no doubt be watching the systemic changes promised. As the KPMG review articulates: The Housing for All strategy “is an expansive document which accepts the challenges that are currently being faced right across the sector and sets out a roadmap for the transformation of Ireland’s housing system over the next 10 years”.

Speaking at the launch, Minister for the Environment, Climate, Communications and Transport, Eamon Ryan TD was clear “the planning system is not working well”. He highlighted the need to reduce costs, reduce delays and to reduce uncertainty. So far so good. He also spoke of the need to get design and quality right. With the phasing out of the current Strategic Housing Development (SHD) process by 2022, the new Large-Scale Residential Development (LSRD?) returns decision-making power to the local authorities. Whether or not this is the so-called “reform” promised remains to be seen.

An Taoiseach tackled the thorny issue of judicial review and called out “not in my back yard” objectors who will no longer be allowed to derail housing delivery. This sentiment, while welcomed by the industry, was not well received by the media. In any event, the Department of Housing will review the judicial review process relating to the planning system in a bid to reduce planning delays and a new division of the High Court will be introduced especially for planning and environmental cases.

As mentioned above, Housing for All is a 213-point plan, the industry is still getting to grips with all that is contained within and the pledges for next steps.

And there remains the challenge of attracting a “new generation” of 27,500 new people into the industry… but that is a larger topic for another day.

Finally, speaking at the launch event, Housing Minister Darragh O’Brien confirmed that he has now signed the Bill extending the current Part V requirement (to deliver 10 percent social housing in developments of 9+ units), to provide for 10 percent social housing and a further 10 percent affordable housing.