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Budget 2021 – Housing Detail

  in ICSH News

An overall package of €3.1 billion to support the social housing needs of 28,500 households in 2021. This is an of over €730 million when compared to Budget 2020, and breaks down as follows:

Through the increased capital and current funding provision, 12,750 new social homes will be delivered through build, acquisition and leasing programmes. Capital funding of over €2 billion has been allocated for housing in 2021, a large element of which will be used to support AHBs and local authorities to deliver over 10,300 new social homes through build and acquisition programmes.

The current funding allocation will support a range of other programmes, and, in particular, the delivery of 2,450 social homes through long-term leasing by local authorities and approved housing bodies (AHBs).

Key elements of the housing capital programme in 2021 include the following:

  • Funding of €220 million (+€77m on 2020) will continue to support the growing delivery of new social housing homes by the AHB sector, via the Capital Advance Leasing Facility (CALF). The increase in funding will allow for the provision of 3,800 additional social homes through new build and acquisition in 2021.
  • Funding of €11 million for the Repair and Leasing Scheme will allow local authorities and approved housing bodies to provide financial assistance to property owners to remediate up to 170 vacant private homes so they can then be leased for social housing.
  • €23 million will support the continuation of the Mortgage to Rent Scheme and will allow for 330 additional households to be supported to remain in their own homes.
  • In line with the Programme for Government commitments, funding of €65 million is available in 2021 to retrofit 2,400 social housing homes to a Building Energy Rating of B2 or cost optimal equivalent;
  • A number of affordability measure with funding totaling €468 million include:
    • A new funding model to accelerate the delivery of approximately 400 Cost Rental homes through the AHB sector as part of an €110 million Affordability Measures package [New Cost Rental Equity Loan Facility (CRELF) will allow AHBs to borrow up to 30% of the cost of Cost Rental homes from the State meaning the delivery of homes at significantly below market rents]. This package also provides for a new national Affordable Purchase Shared Equity Scheme for first time buyers;
    • €50 million will be allocated to the Serviced Sites Fund (SSF) to provide infrastructure to support the delivery of homes to purchase or rent at discounted prices;
    • The Local Infrastructure Housing Activation Fund (LIHAF) will be supported by an allocation of €38 million in 2021, which will go towards funding major public infrastructure projects and the ongoing delivery of up to 20,000 new homes across public and private sites over the lifetime of the scheme;
    • Funding package for the Land Development Agency. The LDA has 9 sites delivery potential for in the region of 4,000 new homes and while precise tenure mix will be determined following master-planning, the majority of these homes will be made available for cost rental or affordable purchase;
  • An allocation of €73 million is provided for the National Regeneration Programme, which will benefit some of the most economically disadvantaged communities;
  • €15.5 million (total capital and current funding of €20 million) for the delivery of Traveller accommodation;
  • €60 million to deliver over 10,700 grants to adapt the homes of older people and people with a disability.

Key elements of the current-funded housing programme 2021 include the following:

  • €218 million (€166 million in budget 2020) to ensure those experiencing homelessness are supported and helped to successfully exit homelessness as well as support the roll-out of the Housing First model (6,000 exits from homelessness estimated for 2021);
  • Additional funding of €59 million under the Social Housing Current Expenditure Programme (SHCEP), giving a total provision of €250 million, will support the delivery of 6,450 additional social housing homes in 2021, as well as continuing to support over 20,800 leased homes already in place;
  • An allocation of €558 million (+€78m) for the Housing Assistance Payment (HAP) will enable 15,000 new households to be accommodated in 2021, as well as continuing to support over 59,000 households already in tenancies by end 2020;
  • Funding of €133 million will allow the ongoing cost of supporting over 17,500 households already in the Rental Accommodation Scheme (RAS). It is expected that a further 800 new households will be supported under RAS in 2021.
  • Funding of €2.5 million is being provided in 2021 to support local authorities in the implementation of the short term letting sector regulations;
  • Funding of €10 million for the Rental Inspections Programme will assist local authorities to achieve their targets under the Strategy for the Rental Sector in relation to the inspection of private rented accommodation to ensure compliance with the relevant standards regulations;
  • The Residential Tenancies Board will be supported through a provision of €11 million in 2021 (+€2m on 2020). The funding reflects the increased role and functions of the Agency, including its expanded regulatory mandate and will also support the delivery of measures required to support the sector during Covid-19.