How High up the Political Agenda is Housing in the Republic of Ireland?

Kathleen McKillionDirector of Operations

Irish Council for Social Housing

Introduction The Irish Council for Social Housing (ICSH)

is the national federation for non-profit housing associations, representing @270 members;

The sector manages over 27,000 homes for families on a low income, older people, people with disabilities and homeless households;

This presentation will focus on this sector, with John giving the wider housing market perspective.

Clúid Housing Association, Fermoy, Co. Cork.

Habinteg Housing Association, Lifford, Co. Donegal.

Circle Voluntary Housing Association, Dublin 1.

Respond Housing Association & St John of God.

Nazareth Housing Association, Sligo.

St. Killian’s Housing Association, Co. Cavan.

Túath Housing Association, Drogheda, Co. Louth.

Danesfort Voluntary Housing Association, Danesfort, Co. Kilkenny.

Kilkee Housing Association, Kilkee, Co. Clare.

Inis Housing Association, Monard, Co. Tipperary.

Respond! Housing Association, Blackpool, Cork.

Clúid Housing Association, Killarney Street, Dublin 1.

Clúid Housing Association, Pelletstown, Dublin 15.

Background in the Republic of Ireland

Over the last decade priority given to housing by Governments would be evidenced in:National Development Plans;Social Partnership arrangements; &Programme for Government: priorities included

policies for unfinished estates and mortgage arrears. Last 5 years post housing market crash: experimental

policy making, pilots, dependence on private sector interest, less Government direct control on provision.

Overall responses limited due to the political and financial requirements of the Troika.

ContextThe provision for social housing significantly

downgraded & funding base eroded over 5 successive Budgets from over €1.5bn in 2008 to less than €500m in 2014;

Within social housing budget line capital funding to Approved Housing Bodies diminished from Capital Assistance Scheme funding of €160m in 2009 to €40 in 2014 and Capital Loan and Subsidy Scheme abolished.

Organic growth: 2,000 new homes in 2009; 677 in 2012;

Since downturn output largely units delivered via leasing initiatives, special needs housing provision or through NAMA & National Asset Residential Property Services (NARPS);

Variety of revenue funded programmes to complement reduced capital spending not filling the gap leading to current housing crisis- in social housing & wider market.

Output local authorities & non-profit sector fell from @7,000 units in 2008 to 750 units in 2013;

Demand steadily increased -90,000 on housing waiting lists & homelessness visible problem;

Leasing schemes provided options in downturn but not capable of providing significant scale;

Need shift to construction and acquisition. Overreliance on private market to meet social housing demand unsustainable & unpredictable;

‘Part V’ beneficial – in review, need 10% of all new developments as social housing units.

‘Social’ Housing at the top of the political agendaHousing confirmed as priority in Government

cabinet reshuffle (May 2014 election); Homelessness election issue;

Tanaiste, Joan Burton highlighted focus on housing in Statement of Priorities “Improving Housing Availability and Affordability”;

Environment Minister, Alan Kelly states No. 1 priority is social housing;

Never a greater focus in Republic of Ireland; butPolicy is uncoordinated & implementation

key.

All political parties taking prominent stance -Fianna Fail Housing Strategy in May 2014;

Independent TDs announce conference plans to set political agenda: 2 issues housing & personal debt;

TD Jonathan O’Brien in Dail -80% of Cork constituency office work;

Oireachtas Committee debate on Housing (Miscellaneous) Provisions Bill widened to Meeting the Housing Demand;

But, limited social housing expenditure stretched; ground zero in output terms- masked by initiatives on voids, regeneration & empty estates.

Essential Government implements priorities, exercises greater control & influence, provides greater State resources, delivers proportionate regulation & integrates policy delivery.

Not just top of political agendaIssue for all social strata and tenures;Google results for ‘Social Housing Crisis Ireland

2014’ show @ 20.5 million searches;SIPTU’s Discussion paper on Ireland’s Housing

Crisis embraces resolving the housing crisis as the major societal project;

Interests a wide range of stakeholders: Banks, Construction Industry, NAMA, other industry bodies.. . all interested in housing market recovery;

Response must be measured & targeted, learning lessons from past..

What does this mean in dealing with the housing issue?New focus by Labour party, in Government with Fine Gael

after cabinet reshuffle has housing as 1 of new priorities;Social Housing Strategy part of Construction 2020 -greater

emphasis on housing & social housing- both in crisis;Strategy to align with financial resources & delivery

implementation structures- many removed in last 5 years e.g. voluntary housing unit in 2009 & National Housing Forum in 2010;

National Economic & Social Council’s Social Housing at the Crossroads sets out Investment, Provision and Cost Rental possibilities ;

Sector needs to increase new supply to realise long term vision;

State not acting quickly -housing supply not meeting demand.

Finally…Housing Policy Statement 2011 & Statement of

Government Priorities 2014-2016 recognises role of non profit sector in housing supply;

Tensions with role of local authorities; Rapid transition 100% capital funding to private

finance, from banks/Housing Finance Agency/EIB challenging;

Scale of problem needs faster response from Irish AHBs;

Enhanced Sector delivery capacity- though Regulation?;

Commitment evident..