Statements on the supply of Social Housing and the Governments Homelessness Policy

I very much welcome the opportunity to speak on this issue. The debate is very timely. I am sure I am no different from other Deputies who probably find that housing is not just the single biggest issue coming to them in representations but larger than all other issues combined.

 

The Dublin market has always been different from the rest of the country but it is diverging even more now. Indeed, the housing situation is very different from what it was even a few years ago. This is a timely debate because we need to find innovative solutions for both the private and public housing sectors. Every area of housing in Dublin now needs attention because they all feed into one another.

 

 One issue on which I wish to focus is affordable housing. I think I heard the Minister of State mention that affordable housing was an area in which the State would not get involved in future. The Part V provision used to cater for affordable housing but that is dead in the water now. We must not forget about that cohort of people who do not qualify for housing assistance, who will never get on housing lists, who cannot raise a deposit but who may be capable of sustaining a mortgage over the longer term. We cannot forget about those people. We have to find ways of helping them, whether that be through longer-term mortgages or some other mechanism. I do not know what the solution is but they cannot just be written off. It is so difficult for people to get into the housing market in Dublin now and there is absolutely no social housing available.

 

 I worry a little about the possibility of pushing up the price of houses through, for instance, the new land zoning tax. I understand the thinking behind it in terms of the perceived need for a social dividend from rezoning. I do not think the tax has been payable on much land to date, but the danger is that it will do exactly what the Part V provisions did. The latter were seen as a way of getting a social dividend from builders, but what the provisions actually did was push up the price of houses for ordinary people. In that way, the State contributed to the housing bubble. We blamed everyone for the housing bubble but the State piggybacked on it. We must be careful not to do that again. Much as we might like to get something from builders, when we rezone land, we must be careful to ensure it does not negatively impact on people trying to buy houses.

 

 I note that the Minister of State has placed a lot of trust and hope in the voluntary housing sector. I know that voluntary housing bodies are used widely in Ireland and elsewhere, including Britain. Such bodies have developed a lot of expertise, but I have a small reservation about the huge taxpayer investment in properties that neither the State nor tenants will ever own. I would strike a note of caution in that regard. I do not know why the State has stood back to the extent that it has in terms of the provision of housing. I understand that bodies dealing exclusively with housing develop expertise and have off-balance sheet borrowing capabilities, but I would suggest to the Minister of State that in solving a short-term problem in this way, we may be creating a longer-term problem for ourselves.

 

 I wish to highlight the fact that Dublin is a special case, and my own area of Dún Laoghaire-Rathdown particularly so, because there simply is not one single house that meets the criteria for rent supplement. That means there is no social housing for people living in my area. If one wants to go on the housing list in Dún Laoghaire-Rathdown, one is told that the minimum waiting period is ten years, and at the same time, one cannot rent in the area either. Despite this, when one looks around the rest of the country, one sees there are many houses available, including some owned by NAMA. There is no housing shortage in the country as a whole, but in Dublin there is simply no house that meets the criteria. It is not just the shortage of houses; it is also the disproportionately high property tax that people in Dublin pay. The burden on the householders of Dublin is high and obviously landlords are trying to pass that on to their tenants. The push from the property tax as well as the fact there is an absolute housing shortage in Dublin means that rents continue to rise. When people contacted me in the past because they could not rent a house and receive rent supplement in Dún Laoghaire-Rathdown, I used to advise them to go to South Dublin County Council or Fingal County Council. Now, however, there is no point in telling them to do that because rents are escalating in those areas too. There are virtually no houses available in the Dublin area. The Minister for Social Protection, Deputy Burton, has plans to change the rent supplement scheme to a rent assistance scheme, under which people will be allowed to work and draw housing assistance, which I welcome. However, it does not really solve the underlying problems of rising rents and a housing shortage in Dublin.

 

 In other parts of the country there is no shortage of housing and rents are far more affordable. In that context, it may be time to consider some kind of resettlement programme, even on a temporary basis, until we get to grips with the housing shortage in Dublin. I know that eventually it will dawn on people that if they want housing, they will have to get out of Dublin and there will be a drift to the cities and towns outside Dublin. I also know that resettlement is not for everyone and that family ties and so forth connect people to where they were born, but for those who want it, it can provide not only a housing solution but also access to schools and other facilities because the demand for these is not as great as it is in Dublin.

 

 I do not think the drift out of Dublin should be left to market forces, however. It is time for the Government to get actively involved in a planned programme of resettlement, helping families to relocate. If it is left to people to decide themselves to go, we will get a scatter gun type relocation throughout the country which, from a planning perspective, is not a good idea. It would be better to direct people who elect to move out of Dublin to the gateways and hub towns identified in the national spatial strategy. Although the latter has fallen into disuse, it is better than nothing in terms of relocating people out of Dublin. In such towns, of course, there is a better chance of getting employment. I am not suggesting that relocation is the solution to the entire housing problem, but for those who express an interest, it is worth pursuing. I know there is a voluntary organisation called Rural Resettlement Ireland, but I think it should be something that is much more structured than that.

 

 At the moment, not only are we not helping people to relocate or suggesting they consider it, we are actually putting barriers in their way. For instance, if one is on the housing list in Dun Laoghaire-Rathdown, one cannot go to Bray and get housing assistance because one is not on the housing list there. I do not think the legislation requires that but that is how the scheme is being implemented. That should be dealt with by letting local authorities know they should be as flexible as possible. It is ridiculous that people who are on a housing list and for whom a housing need has been established cannot go and rent a house in an area that is cheaper and get a lesser subsidy. As I said, relocation is not for everyone but it is a possibility for some.

 

I very much welcome the opportunity to speak on this issue. The debate is very timely. I am sure I am no different from other Deputies who probably find that housing is not just the single biggest issue coming to them in representations but larger than all other issues combined.

 

The Dublin market has always been different from the rest of the country but it is diverging even more now. Indeed, the housing situation is very different from what it was even a few years ago. This is a timely debate because we need to find innovative solutions for both the private and public housing sectors. Every area of housing in Dublin now needs attention because they all feed into one another.

 

 One issue on which I wish to focus is affordable housing. I think I heard the Minister of State mention that affordable housing was an area in which the State would not get involved in future. The Part V provision used to cater for affordable housing but that is dead in the water now. We must not forget about that cohort of people who do not qualify for housing assistance, who will never get on housing lists, who cannot raise a deposit but who may be capable of sustaining a mortgage over the longer term. We cannot forget about those people. We have to find ways of helping them, whether that be through longer-term mortgages or some other mechanism. I do not know what the solution is but they cannot just be written off. It is so difficult for people to get into the housing market in Dublin now and there is absolutely no social housing available.

 

 I worry a little about the possibility of pushing up the price of houses through, for instance, the new land zoning tax. I understand the thinking behind it in terms of the perceived need for a social dividend from rezoning. I do not think the tax has been payable on much land to date, but the danger is that it will do exactly what the Part V provisions did. The latter were seen as a way of getting a social dividend from builders, but what the provisions actually did was push up the price of houses for ordinary people. In that way, the State contributed to the housing bubble. We blamed everyone for the housing bubble but the State piggybacked on it. We must be careful not to do that again. Much as we might like to get something from builders, when we rezone land, we must be careful to ensure it does not negatively impact on people trying to buy houses.

 

 I note that the Minister of State has placed a lot of trust and hope in the voluntary housing sector. I know that voluntary housing bodies are used widely in Ireland and elsewhere, including Britain. Such bodies have developed a lot of expertise, but I have a small reservation about the huge taxpayer investment in properties that neither the State nor tenants will ever own. I would strike a note of caution in that regard. I do not know why the State has stood back to the extent that it has in terms of the provision of housing. I understand that bodies dealing exclusively with housing develop expertise and have off-balance sheet borrowing capabilities, but I would suggest to the Minister of State that in solving a short-term problem in this way, we may be creating a longer-term problem for ourselves.

 

 I wish to highlight the fact that Dublin is a special case, and my own area of Dún Laoghaire-Rathdown particularly so, because there simply is not one single house that meets the criteria for rent supplement. That means there is no social housing for people living in my area. If one wants to go on the housing list in Dún Laoghaire-Rathdown, one is told that the minimum waiting period is ten years, and at the same time, one cannot rent in the area either. Despite this, when one looks around the rest of the country, one sees there are many houses available, including some owned by NAMA. There is no housing shortage in the country as a whole, but in Dublin there is simply no house that meets the criteria. It is not just the shortage of houses; it is also the disproportionately high property tax that people in Dublin pay. The burden on the householders of Dublin is high and obviously landlords are trying to pass that on to their tenants. The push from the property tax as well as the fact there is an absolute housing shortage in Dublin means that rents continue to rise. When people contacted me in the past because they could not rent a house and receive rent supplement in Dún Laoghaire-Rathdown, I used to advise them to go to South Dublin County Council or Fingal County Council. Now, however, there is no point in telling them to do that because rents are escalating in those areas too. There are virtually no houses available in the Dublin area. The Minister for Social Protection, Deputy Burton, has plans to change the rent supplement scheme to a rent assistance scheme, under which people will be allowed to work and draw housing assistance, which I welcome. However, it does not really solve the underlying problems of rising rents and a housing shortage in Dublin.

 

 In other parts of the country there is no shortage of housing and rents are far more affordable. In that context, it may be time to consider some kind of resettlement programme, even on a temporary basis, until we get to grips with the housing shortage in Dublin. I know that eventually it will dawn on people that if they want housing, they will have to get out of Dublin and there will be a drift to the cities and towns outside Dublin. I also know that resettlement is not for everyone and that family ties and so forth connect people to where they were born, but for those who want it, it can provide not only a housing solution but also access to schools and other facilities because the demand for these is not as great as it is in Dublin.

 

 I do not think the drift out of Dublin should be left to market forces, however. It is time for the Government to get actively involved in a planned programme of resettlement, helping families to relocate. If it is left to people to decide themselves to go, we will get a scatter gun type relocation throughout the country which, from a planning perspective, is not a good idea. It would be better to direct people who elect to move out of Dublin to the gateways and hub towns identified in the national spatial strategy. Although the latter has fallen into disuse, it is better than nothing in terms of relocating people out of Dublin. In such towns, of course, there is a better chance of getting employment. I am not suggesting that relocation is the solution to the entire housing problem, but for those who express an interest, it is worth pursuing. I know there is a voluntary organisation called Rural Resettlement Ireland, but I think it should be something that is much more structured than that.

 

 At the moment, not only are we not helping people to relocate or suggesting they consider it, we are actually putting barriers in their way. For instance, if one is on the housing list in Dun Laoghaire-Rathdown, one cannot go to Bray and get housing assistance because one is not on the housing list there. I do not think the legislation requires that but that is how the scheme is being implemented. That should be dealt with by letting local authorities know they should be as flexible as possible. It is ridiculous that people who are on a housing list and for whom a housing need has been established cannot go and rent a house in an area that is cheaper and get a lesser subsidy. As I said, relocation is not for everyone but it is a possibility for some.