DEPARTMENT OF HOUSING, LOCAL GOVERNMENT AND HERITAGE BUDGET PACKAGE OF ALMOST €8BN ANNOUNCED

Record capital €6bn funding for housing
€2.7bn package for Uisce Éireann to deliver necessary water infrastructure & support housing
Significant funding for Local Authorities, Planning and Heritage

The Government’s commitment to Housing, Local Government and Heritage was emphasised in an overall budget package of €7.93bn announced today by Minister for Housing, Local Government and Heritage, Darragh O’Brien TD, Minister of State with responsibility for Local Government and Planning, Alan Dillon TD, and Minister of State for Heritage and Electoral Reform, Malcolm Noonan TD.

The recent strong momentum in delivery under Housing for All, the Government’s national housing strategy, will be sustained by a record €6bn capital investment in housing in 2025 – made up of €3.1bn exchequer funding, €1.25 allocated to the Land Development Agency (LDA) and €1.65bn for the Housing Finance Agency (HFA).

Minister O’Brien emphasised that the recent upward momentum in delivery – with Housing for All targets being exceeded year on year – will continue to grow as a result of today’s budget.

Minister O’Brien said:

“This budget, like the four which came before it, is unprecedented with €6bn in capital to help us to deliver social, affordable and cost rental homes for our people. It’s the most any Government has ever invested in housing.

“A robust funding framework is the cornerstone of Housing for All and, by securing this increased level of capital investment, we are providing certainty and confidence to our people and the wider housing market.

“We’re the top country in Europe for housing construction – with a sector which is growing – and expected to keep growing – while declining elsewhere in the continent. This budget will allow us to keep our foot on the pedal and sustain this strong delivery.

“More than €2.3bn in affordability investment, a combination of Exchequer and other funding, will support the initiatives we have put in place such as the First Home Scheme, the Affordable Housing Fund, the Secure Tenancy Affordable Rental (STAR) scheme and the Help-to-Buy initiative.

“In the just over four years since this Government came into being, we have introduced multiple schemes or initiatives which are focussed solely on delivering more affordable and cost rental homes. Each of these schemes are delivering for people and we will build on them next year.

“For example, the popular First Home Scheme will receive a further €80 million in Exchequer funding in 2025 which will be matched by participating banks, meaning €160M will be available next year to support the purchase of some 2,000 homes.

“In keeping with our focus on homeownership, I very much welcome the fact that that my colleague the Minister for Finance has extended the Help-to-Buy scheme to the end of the decade – something I have pushed for as it is another important support in our many forms of assistance to help people to get that crucial first step on the housing ladder.

“Our efforts to tackle vacancy and dereliction continue, and while our vacancy grants provide real incentive for those wishing to turn a vacant or derelict property into a home, the Vacant Property Tax which is increasing from five times LPT to seven times, will penalise those who willingly leave a home empty.

“The over €2billion capital investment in social housing will be focussed on new build homes by local authorities and our Approved Housing Bodies (AHB’s) who are crucial delivery partners.

“Furthermore, through this budget, an additional 10,000 households will have their housing needs met under the Housing Assistance Payment and Rental Accommodation Scheme, as well as continuing support for approximately 66,000 active tenancies under these schemes. These are direct supports for those who need them most.

“We know that most renters want to buy their own home but they need our support while in the rental market. I am delighted that the Minister for Finance has announced an increase in the Renters Tax Credit to €1,000 for both this year and next. This will assist renters in the immediate term while our expansion of affordable cost rental will make a massive difference as it already is doing for the tenants in those safe and secure tenancies. To further support the rental sector, the Residential Tenancies Board will receive funding of €14.5 million. In addition, €10.5 million will be provided for local authority inspection activity in the rental sector to ensure compliance with rental standards.

“Without a doubt, homelessness remains our biggest challenge – and our top priority. In today’s package, I am making funding of €303 million available for the delivery of homeless services with a particular emphasis on ensuring that households at risk of homelessness are prevented from entering into emergency accommodation and those in emergency accommodation are supported to exit into secure tenancies as quickly as possible. This level of funding will be kept under ongoing review throughout 2025.

“We are starting and completing homes at record levels and delivering social housing at levels not seen since the 1970s. Housing for All is delivering and will deliver even more, thanks to the package unveiled today.”

Other key highlights of today’s Budget announcement for housing include:

• Increased capital funding to support specific categories of need:

– €100 million for grants to adapt the homes of older people and people with a disability and for the implementation of the recommendations of the review of the schemes. A further €25 million will support adaptation works to 1,800 existing social homes.

– Capital funding of €12m will support the delivery of high quality transitional and emergency accommodation for individuals experiencing homelessness .

– €23 million is provided to deliver Traveller-Specific Accommodation for members of the Traveller community.

• €90 million to support the retrofitting of c.2,500 social homes to a Building Energy Rating of B2 or cost optimal equivalent, in line with the Programme for Government commitment to retrofit 36,500 local authority homes by 2030.

• €105m is being provided in 2025 for the remediation of homes affected by defects , including pyrite, apartment defects and defective concrete blocks.

• €31m will support the continued transition to a strategic planned maintenance programme for local authority social housing and the remediation of 2,300 vacant social homes for re-letting to households on housing waiting lists.

• An allocation of €50m is provided for the National Regeneration Programme which will benefit some of the most economically disadvantaged communities.

• €30m is provided for Croí Cónaithe Cities Scheme to support the building of apartments for sale to owner-occupiers by activating planning permissions already in place for such homes.

• €80m for the Croí Cónaithe Towns Scheme will support the refurbishment of vacant and derelict properties in cities, towns and rural areas, ensuring the efficient re-use of existing stock.

Water

Minister O’Brien also announced an overall allocation of €2.7bn for Uisce Éireann, emphasising:

“In addition to the €1.7bn for Uisce Éireann next year in 2025, we have secured an equity investment of €1 billion for Uisce Éireann to support the delivery of their Capital Investment Plan for 2025-2029. This continued investment in public water services capital infrastructure will be vital to support future housing delivery.”

Planning

Minister of State Dillon welcomed the Budget’s provision for planning. A total in excess of €279m is being provided in 2024 for the Department’s planning programme, of which €63 million relates to current services and €216 million for capital expenditure.

The aim of this programme is to promote sustainable economic growth and balanced regional development and support the goals of the National Planning Framework, in particular those related to housing, climate, infrastructure, competitiveness/jobs and urban, regional and rural development, by ensuring that the terrestrial planning system can deliver high quality, timely and robust plans and decisions, through the ongoing planning reform programme including through the enactment of the Planning and Development Bill 2023.

The 2025 allocation includes the Urban Regeneration and Development Fund (URDF) with €186 million being provided for the fund in 2025 to allow for:

• The further advancement of the 132 successful applications for URDF support under Calls 1 & 2, comprising of more than 400 individual projects.

• Continued support for each local authority’s programme of acquisitions approved under the URDF’s third round of funding support (Call 3), to help tackle long term vacant and derelict properties in URDF eligible towns and cities.

Minister Dillon added:

“The allocation for planning announced today also allows for investment in the resourcing of the planning system, including staffing levels for An Bord Pleanála, and the Office of the Planning Regulator as well as enhancing sanctioned staffing levels for local authorities. This is crucial in anticipation of the impending introduction of the landmark Planning and Development Bill 2023 which will significantly reform planning in this country for the better.

“The continued URDF investment will allow the Department to provide an integrated, dynamic and responsive programme to support the regeneration and rejuvenation of our towns and cities throughout the country.”

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Michael McDonnell Managing Editor of Irish Construction Industry Magazine & Plan Magazine

Email: michael@irishconstruction.com      WWW.MCDMEDIA.IE