Housing waiting list numbers to soar

THE number of people on waiting lists for local authority houses is set to soar following government spending cutbacks, it was warned yesterday.

Fresh figures show the number of applicants waiting for social housing has reached 50,000 - a 25% increase in just three years.

Opposition politicians and union leaders say spiralling increases in property costs will see even more people forced onto the waiting lists. People on middle incomes are being squeezed out of the property market and joining those with low incomes on housing waiting lists for the first time, according to housing group, Threshold.

The Department of Environment’s budget for housing for next year will drop by 5% but critics say inflation in the construction industry means the number of houses being built could fall by up to 15% in real terms.

Des Geraghty, president of SIPTU, said curbs in the social housing budget were the most shocking element of the cutbacks.

“Since Mr McCreevy became minister for finance, real house prices have risen by over 145%. This situation has led to a massive increase in the demand for social housing, but the Government’s response was to slash investment in this area.

“And for those who harbour hope of affording their own home, the news was even worse,” said Mr Geraghty.

However, Environment Minister Martin Cullen says the output of houses will drop only slightly next year and savings from the abolition of the first-time buyers’ grant would be put directly into social housing.

Fianna Fáil pledged in its election manifesto that it would meet the needs of 15,000 households each year, but this promise was dropped from the programme for government.

Opposition parties yesterday rounded on the Government, accusing it of breaking election promises and hitting the weakest in society. Fine Gael’s environment spokesman Bernard Allen said other cuts in local authorities’ budgets meant people would be faced with higher rates for services.

“Any local authority member or manager will confirm a doubling of local service charges and increased commercial rates are imminent.

“The scale of the increase will remove the last fiction local charges are for refuse or services. In effect, a poll tax is on the way.”

Labour’s environment spokesman Eamon Gilmore said: “The estimates represent a betrayal of low-income families who cannot now afford to buy homes and who are being exploited in the private rented sector. Last week almost 600 young people on a local authority waiting lists were forced to join in a raffle for 40 houses because demand was so high.