Media Release 2nd October 2014
The Irish Council for Social Housing today welcomed the decision to require developers to provide up to 10% of their housing units for social housing through Part V. This proposal, along with the removal of the ability of developers to account for social housing payments through cash payments, will be an effective instrument to boost supply of social housing in the current climate where there is a huge demand for social housing in the urban areas.
New provisions should provide greater certainty to local authorities, developers and housing associations as previously the predominant option used by developers to comply with Part V requirements was paying cash to local authorities instead of providing social rented homes on site. This practice delayed the process of providing new social housing which was then was earmarked for other locations and did not help to counteract social segregation which was one of the original objectives of the legislation.
Executive Director of the ICSH Mr Donal McManus, commented ‘Non-profit housing associations were the recipients of an estimated 2,000 social rented homes through Part V which was a modest outcome considering when, at the peak of the boom, there were between 80,000-90,000 homes built. However, the social rented homes received by housing associations were high quality mixed tenure developments’.
The removal of affordable housing from the Part V requirement as a form of discounted homeownership was inevitable as affordable housing provided by the state in come cases became unaffordable for buyers and vacant properties in the private market in recent years became affordable. Mr Mc Manus added, ‘Many of the affordable homes provided by local authorities were unable to be sold and ended up being used by housing associations for social housing to house people from the local authority waiting lists. In addition, there were a significant number of affordable housing schemes and structures set up in the boom period which displaced efforts and resources such as land away from social housing when the demand has remained strong with up to 90,000 people being recorded by local authorities in housing need.
Housing associations availing of Part V units to own or manage for social rented homes can also use mixed funding models which stretch limited state funding further with the use of private finance.
Ends
For queries contact: Donal McManus or Caren Gallagher, ICSH, Tel: 01 6618334