More than 260,000 eligible people aren't in receipt of long-term social housing

Between 2001 and 2020, the State spent around €16.29 billion on capital-funded housing and spent another €12.85 billion on current-funded measures, such as rent supplement and HAP.

There are more than 260,000 people eligible for long-term social housing who are not yet in receipt of it, a report from the Parliamentary Budget Office has found.

It says it would cost the State approximately €14.3 billion to deliver housing for all of those with unmet social housing needs.

If everyone in receipt of the Housing Assistance Payment (HAP) was to have their housing provided through “capital means”, i.e. through the building of homes, it would cost the State a further €15 billion.

Building and acquiring homes through these capital means offers “better value for money”, the report says.

It finds that between 2001 and 2020, the State spent around €16.29 billion on capital-funded housing and spent another €12.85 billion on current-funded measures, such as rent supplement and HAP.

Spending on current-funded measures increased from €300 million in 2001 to €1.25 billion in 2020.

“Where long-term social housing needs are identified, capital investment offers better value for money in the longer term (albeit the timelines for this value to be realised will vary depending on the comparative cost of current supply in the same area)," it says.

Priority should thus be given to the supply of capital units in areas, or unit types, where this value can be achieved more promptly.

The report points to inconsistencies in State spending on housing in recent decades. Pre-2009, 69% of total spend on State-funded housing came through capital spending. This fell to as low as 25% by 2014.

In the short term, an absence of sufficient supply of housing, as highlighted in a number of areas, will keep rents rising for both private renters and for the Exchequer through the schemes it funds.

Constrained supply

“A constrained supply of rental properties and increases in rental costs will significantly impact those at the margins,” the report says. “[This is] households who do not qualify for housing supports, but who struggle to find affordable or suitable accommodation.” 

On the new Housing for All plan from the Government, the report says that if the delivery of social homes relies too heavily on acquiring them from private developments, “it may result in the State continuing to compete with private individuals for the purchase of limited housing stock”.

Social Democrat housing spokesperson Cian O’Callaghan said the report is “frustrating” as it points out that Government underinvestment over a period of years in capital spending on housing has meant that current spend keeps increasing.

“It says clearly that with underinvestment in the capital side, you can get away with it for a couple of years,” the Dublin Bay North TD said. “But it’s just not sustainable in the long-term.”