- Upward trend in social housing delivery expected to continue this year with over 25,000 new homes on site or at design and tender stage
- Affordable housing gaining strong momentum – delivery in Q1 2024 increased by 59% compared to the same quarter last year
The Minister for Housing, Local Government and Heritage, Darragh O’Brien TD has today published the social and affordable housing delivery statistics for Quarter 1 2024, indicating gathering momentum in the delivery of social and affordable housing.
The Social and Affordable Housing data sets can be accessed here: Overall social and affordable housing provision
Social Housing
3,270 housing supports were delivered in Q1 2024. This included 720 new social homes – a mix of 158 new-build homes, 330 acquisitions and 232 homes delivered through leasing programmes – as well as supports via the Housing Assistance Payment (2,175) and Rental Accommodation Scheme (375).
With regard to the delivery of social housing new builds by local authorities, traditionally a significant part of this delivery occurs in the second half of the year. For example, last year 83% of all new-build delivery occurred in the second half of the year (6,717 homes) with 67% of that year’s output arriving in Q4 alone (5,472 homes).
The strongest national delivery of social housing since 1975 was recorded in 2022 when 10,254 homes were delivered and this record was exceeded again in 2023 when 11,938 new social homes were delivered by local authorities and AHBs. The strength of the current pipeline indicates that 2023 delivery will be surpassed this year.
The Department has also published the Construction Status Report (CSR) for Q1 2024 today. The CSR provides scheme-level detail on new-build social housing activity and is published on the Department’s website. This is sorted by local authority, and gives a list of the individual projects that make up the new build programme for that local authority (excluding Local Authority Part V delivery). The data can be accessed here: Social Housing Construction Projects Status Report Q1 2024
The latest Construction Status Report shows that 9,179 social homes were on site at the end of March with an additional 15,848 homes at design and tender stage. In Quarter 1 2024 alone, 121 new construction schemes (2,595 homes) were added to the pipeline.
Minister O’Brien emphasised today that his Department has worked individually and collectively with the Local Authority sector to remove blockages to this essential delivery, including:
- Funding more than 250 additional housing posts in local authorities to deliver new social housing;
- Giving local authorities options that allow them to deviate from using the standard four-stage process to achieve funding approval for social housing construction projects;
- Increasing the value for single-stage projects from €2m to €8m – allowing local authorities to avail to a greater extent of the increased single-stage approval process which takes approximately four weeks with the Department;
- Providing funding of €94m to local authorities to address legacy land debts - linked to the immediate development of a housing proposal, a commitment to use Modern Methods of Construction (MMC) and for construction to start in 2023 or no later than 2024;
- A total of 36 sites earmarked for MMC projects have now received funding as part of an accelerated delivery programme and these projects will deliver more than 1,500 new social homes across 13 local authorities;
- A project manager was also appointed in the Housing Delivery Coordination Office to help support the social housing delivery and to manage the programme of accelerated delivery.
Minister O’Brien noted the strength of the social housing pipeline with just over 25,000 new homes either on site or at design and tender stage.
The Minister stated:
“It is clear to see that record investment under Housing for All is bearing fruit in a robust delivery pipeline and a strong momentum is growing. It is very apparent that the ability of local authorities to build social housing on their own land - in alignment with their Housing Delivery Action Plans - is pivotal to achieving cost-effective delivery at the scale required under current and future projections. We are working closely with them to ensure they can deliver on their full potential.”
Affordable Housing
In Q1 2024, over 1,000 affordable housing supports have been delivered via Approved Housing Bodies (AHB), Local Authorities, the Land Development Agency (LDA), the Cost Rental Tenant-in-Situ (CRTiS) scheme, the First Home Scheme, and through the Vacant Property Refurbishment Grant.
Affordable housing delivery increased by 59% compared to the same quarter last year, further demonstrating the consistent year on year growth in delivery since the launch of Housing for All.
First Home Scheme
The First Home Scheme in particular continues to be a key support for first-time buyers. By the end of Q1 2024, over 4,000 First Home Shared Equity Scheme approvals have issued since its launch in July 2022, with 75% of all approvals issued in Dublin, Cork, Kildare, Meath and Wicklow. Over 800 approvals were issued in Q1 2024 alone, the highest of any quarter since the scheme launched.
Minister O’Brien pointed out:
“I was happy to mark the second anniversary of this scheme last week and to highlight its crucial importance for many first-time buyers and other eligible homebuyers in purchasing new houses and apartments in the private market. I understand that by the end of Q2 this year over 4,850 approvals have issued under the scheme – underlining its continuing popularity. New revised price ceilings in relation to 14 local authority areas came into effect at the beginning of this month and creates the potential to assist even more potential homeowners”.
The data published today also includes the Q1 affordable housing output. Overall, over 4,200 affordable homes (affordable purchase and cost rental) in 21 local authorities have been approved for delivery, supported by €369m in grant assistance from the AHF.
Affordable Purchase Homes
To date, over 850 Local Authority Affordable Purchase homes have been delivered and the affordable purchase delivery pipeline continues to grow from strength to strength with over 3,000 affordable purchase homes approved for support under the Affordable Housing Fund (AHF) across 21 local authority areas. Of these, 1,850 affordable purchase homes have already been advertised in Carlow, Cork City, Cork County, Clare, Dublin City, Fingal, Kildare, Kilkenny, Laois, Louth, Limerick, Meath, South Dublin, Waterford, Westmeath and Wicklow.
Cost Rental Homes
In relation to Cost Rental, to date there are over 1,750 Cost Rental homes in the State delivered by Approved Housing Bodies (AHBs), Local Authorities, the LDA and through the Cost Rental Tenant in Situ (CRTiS) scheme.
In terms of AHB delivery, over €730m has been approved under the Cost Rental Equity Loan (CREL) to assist in the delivery of over 3,600 Cost Rental homes across 14 local authority areas.
There is a further pipeline of nearly 1,200 local authority Cost Rental homes, supported by the AHF, (including 50 homes already delivered at Enniskerry Road and 22 homes at Ballynanesagh, Waterford) across 14 projects.
In addition, to support households at risk of homelessness, 135 bids have been accepted as part of the CRTiS scheme to end of Q1 2024 since launch in April 2023.
Land Development Agency
Further progress is being made by the Land Development Agency (LDA) to provide affordable and social housing through their market engagement initiative, Project Tosaigh, and through their work developing relevant public land.
The LDA made further progress advancing affordable and social housing delivery through Phase II of Project Tosaigh by establishing a framework panel consisting of 15 of Ireland’s largest and most experienced homebuilders to accelerate the delivery of affordable homes. Under Project Tosaigh the LDA is targeting 8,000 homes by 2028 and currently on track to deliver 5,000 of these homes by end 2026.
Real progress is also being made on transferring lands to the LDA and constructing homes, including:
- Cork where the first phase of a total expected delivery of 265 homes is under construction at St Kevins Hospital
- Naas where 219 homes are being delivered at Devoy Barracks
There is also a very strong pipeline of homes being delivered both on State lands and also in partnership with Local Authorities on lands like Shanganagh in Dun Laoghaire which will see its first delivery this year.
Vacancy
The Vacant Property Refurbishment Grant, introduced in July 2022, is part of a range of initiatives to address vacancy and make bringing existing properties back into use more affordable.
To the end of Q1 2024 (since its launch), over 4,250 applications were approved for the grant, with 250 grants paid out to successful applicants on the completion of refurbishment works. Q2 2024 statistics are due to be published in the coming week with the number of grant approvals expected to reach over 5,400 with the number of grant drawdowns expected to be in excess of 480.The level of drawdown is expected to ramp up significantly this year as more works are completed.
Commenting on the progress made on affordable delivery in 2023 and anticipating delivery this year, Minister O’Brien emphasised:
“Many of our affordable housing measures are brand new but are already having a significant impact. The affordable housing delivery programme is now picking up pace and will continue to be expanded and developed by all delivery partners in 2024 and beyond.
“Government measures - such as the increased financial support for delivery of Cost Rental homes by Approved Housing Bodies through the revised Cost Rental Equity Loan, the Secure Tenancy Affordable Rental scheme, and recently approved Local Authority Purchase and Renovation Loan – will significantly help us to to address viability challenges in the sector, activate uncommenced sites for the provision of affordable housing, as well as addressing vacancy.
“I am determined that this momentum will continue and that we will continue to maintain our rigid focus on creating a healthy pipeline of affordable housing delivery - developed and expanded by our partners in the local authorities, AHBs and the LDA.”
ENDS
