Government confirm funding for 6,000 affordable homes for couples earning up to €75k

Stock Image: Bloomberg

Paul Melia

Funding for 6,000 affordable homes for couples earning up to €75,000 form a key plank of the Government’s housing budget.

Finance Minister Paschal Donohoe has allocated a total of €2.3bn for housing in 2019, an increase of €470m over this year’s budget.

He said the Government was "rising to the challenge" of providing homes, and that more new homes would be provided this year "than in any year in the past decade".

"Over four years to the end of 2019, €6.6bn will have been provided to accelerate the delivery of housing supports," he said in his Budget speech.

"This funding reflects our determination to rise to the challenge of providing shelter and homes for our people. Where we find ourselves today is not where we want to be."

He said there was a need to improve affordability for those on low and middle incomes. To that end, some €310m will be provided over three years to local authorities to prepare sites for housing development.

Some €119m will be provided in 2019, and the funding will be used to reduce the cost of homes.

Some 6,000 affordable units will be provided on lands in receive of this €310m serviced site fund. A maximum discount of €50,000, or 40pc below the market price, will apply.

A single person can earn €50,000 and a couple €75,000 to qualify.

Another €1.25bn is being allocated to deliver 10,000 new social homes through building, acquisition and leasing. Some €121m will be allocated for Housing Assistance Payment, which will deliver 16,760 tenancies.

Some €60m will be allocated this year for emergency accommodation.

Landlords will be entitled to deduct interest paid on loans used to upgrade properties earlier than previously indicated. The rate was due to rise to 100pc by 2021, but will instead be effective from January 1 next.

The minister also added that changes in Local Property Tax would be "moderate and affordable". The report of a review group would be published.