Too few, too dear — plan for 350 affordable homes comes in for criticism from opposition

It is expected that the remaining development or acquisition costs for the homes will be met by long-term commercial loans from the Housing Finance Agency. File picture: Pexels

The Government's plan to fund 350 cost rental homes has been criticised as "lacking ambition".

Darragh O'Brien, the housing minister, today announced the commencement of the Cost Rental Equity Loan (CREL) scheme, which had been announced in October. Under the scheme, €35m will be given to support Approved Housing Bodies (AHBs) deliver around 350 cost rental homes next year. 

It is expected that the remaining development or acquisition costs for the homes will be met by long-term commercial loans from the Housing Finance Agency (HFA). The Department of Housing has issued a call to AHBs for proposals for the scheme.

Mr O'Brien said the measure was part of an overall €468m package to make the cost of housing, both for ownership and to rent, more affordable. He said that AHBs were well placed to deliver the homes.

"AHBs have consistently demonstrated their capacity and expertise in developing and managing homes for the social housing sector," he said. 

"This new scheme provides for an expanded role for the AHB sector, enabling it to support moderate-income households in need of quality, affordable homes.”

Cost rental schemes will seek to address housing need for those who fall outside the earnings brackets of traditional social housing. The department's plan will ask AHBs to establish schemes that can offer rent of around €1,200 in parts of Dublin county. No mention of how this would be funded is included in the department's call for submissions.

Minister for Housing Darragh O'Brien. File picture

However, the Government's expenditure report commits to 400 cost rental homes, with 50 currently being built on the Enniskerry Rd in south Dublin now being rolled into the overall figure. 

This, Sinn Féin's housing spokesperson Eoin Ó Broin said, showed a complete lack of ambition.

"Whether it's 350 or 400, both the Housing Agency and the National Economic and Social Council have called on the Government to invest in cost-rental at scale — that means thousands and thousands of units — not a paltry 350," he said.

"My big concern is that this is nowhere close to enough. The second is that the rent is too high. The rent has to be lower — €700 for a one-bed, €800 for a two-bed and €900 for a three-bed.

"It shows the absolute lack of ambition this Government has towards solving the rental crisis."