Sunday 19 November 2017

Social housing scheme no longer 'fit for purpose'

Paul Melia

Paul Melia

A SCHEME aimed at providing new homes for people on low or middle incomes is no longer "fit for purpose", a major report says.

Just over 15,000 houses and apartments – a paltry 3.8pc of the total number of homes built between 2002 and 2011 – were provided to local authorities under the controversial Part V legislation, a report for the Department of the Environment says.

The scheme was supposed to deliver up to 20pc of all properties in a development for social and affordable housing, but just a fraction of those numbers were delivered.

Developers gave €136m to councils in lieu of units, often because they didn't want to deter private buyers from purchasing homes in developments that had social or affordable units.

The report was prepared for the Housing Agency and will be published today.

"The review of Part V identifies that it is no longer fit for its original purpose," the report says. The report says the Part V process was "generally perceived" as "inefficient". While it did provide value for money, saving the State €614m, it resulted in a "limited number" of units.

The report says the Government could consider abolishing Part V, or amending it.

Irish Independent

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