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Home Ownership

The objective of successive Irish governments in relation to housing has been

'To enable every household to have available an affordable dwelling of good quality, suited to its needs, in a good environment and, as far as is possible, at the tenure of its choice.'

Government policy has always been to encourage owner-occupation and as a result Ireland has one of the highest rates of home ownership in the world, at over 80%. About half of all home owners own their properties outright.

The main tool in promoting this policy has been the use of subsidies and incentives to encourage citizens to purchase their own homes, although the value of these has gradually been reduced over the last decade, tax relief on mortgages has been reduced. A first time buyers grant was abolished in the budget of 2003. Over the last number of years a number of new measures have been introduced to make home ownership more accessible to low income households. These include the shared ownership and affordable housing schemes. More information can be found on the Department of the Environment website.

The route to home ownership for many is through local authority housing. The availability of various tenant purchase schemes has seen over two thirds of local authority stock being transferred to private ownership. 
 
Rented Housing

Given the dominance of owner occupation, rented housing is a residual tenure in Ireland. Housing may be rented from local authorities, housing associations and private landlords. Rented housing is subsidised by the state. Tenants of private landlords and some housing association tenants may be eligible for rent supplements through the Supplementary Welfare Allowance Scheme (if they are claiming social welfare payments) or through tax credits, although there is large difference between the value of the two subsidies, with the SWA rent allowance being much greater. Local authority tenants are subject to a differential rent, which is based on income. 
 
Local Authority and Housing Associations

Local authority and housing associations allocate their housing according to housing need. Applicants must be unable to provide housing from their own resources (have income under specified limits) and spend time on a waiting list. Local authorities have traditionally provided for families, with some small schemes for elderly people. Building in the 1970s and 1980s was on green field sites, generally on the outskirts of towns. This resulted in an over-concentration of low income households in one area, which together with poor management by local authorities and a lack of necessary amenities created "problem estates". These problems have been acknowledged and now local authorities attempt to avoid them, through their management and allocation practices, through partnership with housing associations and the implementation of housing strategies. 
  

Irish Council for Social Housing

The Irish Council for Social Housing (ICSH) is the representative federation for voluntary housing associations who collectively provide up to 30% of all new social rented housing.

• The ICSH has over 300 members including housing associations who specifically provide housing related services for people who are experiencing homelessness in the Dublin region.
   
• The ICSH is a social partner and has a dedicated special needs sub committee that deals with issues relating to homelessness.

 

Private Rented Housing

Private rented housing is relatively easy to access, if the tenant has access to the necessary rental deposit and rent in advance, and that they are accepted by a landlord. Supply has been stimulated in recent years by a range of tax incentives for investors and regulation has improved, primarily due to the Housing Act, 1992 and the regulations made under it. Landlords must be registered with a local authority, must provide tenants with a written tenancy agreement, a rent book or receipt for rent paid and properties must comply with minimum physical standards. More recently, a Residential Tenancies Board has been established to oversee the operation of the private rented sector, including new arrangements in relation to security of tenure, and to mediate in landlord/tenant disputes. 
 

Rental Accommodation Scheme

The Rental Accommodation Scheme (RAS) is a scheme for people who are receiving rent supplement, usually for more than 18 months and who will need long-term housing. Local authorities run the scheme and it provides additional quality rented accommodation for people receiving rent supplement and it will help local authorities to provide long-term housing for people who need it. 

Under the RAS scheme a local authority will find suitable accommodation for a person and pay rent to the landlord directly. The person will need to pay rent to the local authority rather then the landlord.

A person will qualify for the RAS scheme if they are assessed by the local authority to have a long term housing need and also if they receive a rent supplement under the Supplementary Welfare Allowance Scheme.
 

Housing Strategies
Under Section 94 of the Planning and Development Act, 2000, each local authority is required to prepare a housing strategy. The purpose of the strategies is to provide for all existing and future housing needs and to integrate these with the development plan. The strategies are required to be coordinated with neighbouring local authorities and with the strategies of city and county development boards.

The strategies aim to ensure that there is an adequate supply of appropriately zoned land to address housing needs and to encourage the development of mixed and balanced communities to counteract undue social segregation. In particular, the strategies aim to ensure a range of housing types and sizes to meet the different demands of the market, including single person households, and to ensure an adequate supply of affordable and social housing for low income households.

Part V of the Planning and Development Acts 2000-2004

Part V says that for most new housing developments, up to 20% of the land must be reserved for social housing or affordable housing.   The local authority decides whether it wants all the 20% it is entitled to, and how this should be divided between social and affordable housing.

There are a number of different ways in which a developer can comply with Part V. These include:

• The developer transfers the ownership of 20% of the land to the local authority for it to use for social and affordable housing. The local authority pays the developer compensation for this, which is equivalent to the value of the land as if it were not zoned for residential development. So usually the local authority pays considerably less than the actual market value of the land.

 

• The developer builds the social and affordable housing and transfers the ownership of these homes to the local authority or housing association. The local authority pays compensation as above, plus an agreed amount for building the houses or apartments (This is the most commonly used option).

 

• The developer provides the equivalent amount of land on another site. The local authority pays compensation to the developer.

 

• Instead of the 20% of the land being reserved for social housing, the developer pays a sum of money to the local authority which is equivalent to the market value of 20% of the land in question

The most important thing to remember is that if the developer and local authority cannot agree which option should apply, then the default option should apply, then the default option is the transfer of 20% of the land to the local authority for it or a housing association to build social and affordable housing. In other words the developer can offer to pay money instead of giving over the land, but if the local authority wants the land it can insist on this.