HOUSING MINISTER PUT SUBSTANCE TO HIS PLAN!
According to Housing Minister Eoghan Murphy, the Department of the Environment, Local Government spend for 2018 will be €2.394 billion. Within that, housing is by far and away the biggest programme. €1.9 billion will be available for housing next year, an increase of €600m, or 46%.
He says: “This investment is directly aimed at addressing our housing shortage and homelessness crisis. It represents an increase of 62% on the capital side – to build new homes – and 35% on the current side to over €760m – to support homelessness, as well as supporting people into new social housing tenancies.
“Looking beyond 2018, I have secured an extra €500 million for capital investment in social housing in the years 2019 to 2021, which will allow us to increase the Rebuilding Ireland social housing target from 47,000 to 50,000 homes, the figure recommended last year by the Special Oireachtas Committee on Housing.
“That is new money that wasn’t in Rebuilding Ireland to date and which will deliver more social housing homes. And because of the changes I announced at the Housing Summit, the stock of homes that will actually be built directly by LAs and AHBs will also increase.”
In terms of the Build Programme, the Minister says: “We will almost double our social housing output next year in terms of direct build, moving from 2,000 this year to 3,800 next year. In 2015 this number was less than 500. The budget for Local Authorities will increase by over 100% to enable them to meet their targets.
“If you add in Part Vs, vacancy conversions, acquisitions, and long-term leases – 7,900 new homes with all the security and affordability that social housing brings, will be created. Will this alone solve our waiting list problem or meet all of the needs of our people? No it will not. That’s why those figures will increase again the next year, and the year after that, and the year after that.
“We will get to 10,000 new Social housing homes in to the Housing stock: we can’t do it next year – but we should be there by 2020. Which is something again when you look back to our numbers as recently as 2015.
“Until we have those houses built, we will continue to support people in to rented accommodation through the HAP payments. This budget effectively doubles to over 300m and will support 17,000 new tenancies next year.
For a more extensive article see our November/December Issue of Irish Construction Industry Magazine available on subscription, contact Linda Doran email@example.com
INITIATIVE IRELAND TO FINANCE €60M
IN RESIDENTIAL CONSTRUCTION
Initiative Ireland has announced that Ireland’s first syndicated property finance platform, which it is scheduling to launch in September, aims to finance €60
million in construction loans to build approximately 250 new family homes over the next 18 months.
Initiative Ireland will enable the company’s private syndicate members to participate in the funding of secured real estate loans across Ireland. Specialising in residential development finance, the company aims to support the construction of 250 new family homes by December 2018, while offering its private syndicate members the ability to earn 3.50% APR to 7.50% APR for their committed funds.
All loans are professionally managed by Initiative Ireland, on behalf of its members from end to end. A minimum commitment of €10,000 is required per loan from members. The company is currently accepting membership applications from private individuals and institutions interested in lending €100,000 or more via its digital platform.
Supported by Enterprise Ireland as a high-potential start-up, and headquartered at NovaUCD, the company was founded in 2015 by an experienced financial services team, with the goal of providing increased financial inclusion, competition and sustainability to the Irish finance market.
Eoghan Murphy TD, Minister for Housing, Planning and Local Government, welcoming the announcement said, “Addressing the housing crisis requires innovation and initiative. It is great to see Irish firms, like Initiative Ireland, responding to the market need with new sustainable solutions. I welcome their goal of making finance available at affordable rates to smaller developers, which is a necessary component if we want to see the activation of dormant sites.”
Padraig W. Rushe, CEO, Initiative Ireland said, “Individuals and institutions can now register for membership at InitiativeIreland.ie and be among the first to gain access to what is an exclusive secured asset class, often available only to Banks and specialist institutions.”
He added, “Moreover, at a time when the country is in desperate need of housing, our initiative will offer competitive returns and terms to our private members, while supporting the construction of much needed family homes across Ireland.”
For a more extensive article see our July/August Issue of Irish Construction Industry Magazine available on subscription, contact Linda Doran firstname.lastname@example.org