Assistance payments to rise as Taoiseach defends absence of annual housing delivery targets

(Left to right) Taoiseach Micheál Martin, minister for housing James Browne and Tánaiste Simon Harris at the launch of the new action plan on housing and homelessness today. Photo: PA

The Government is set to hike the rate of Housing Assistance Payment to make more rental properties affordable for those struggling to find a home.

The move comes as Taoiseach Micheál Martin defended the removal of yearly home delivery targets under its new housing plan. ‘Delivering Homes, Building Communities’, launched on Thursday, reveals the Government's policy platform for the remainder of its term.

The overall target for housing delivery over the lifetime of the plan is 300,000. However, yearly targets for private housing delivery have been removed, despite having previously been agreed as part of the revised National Planning Framework.

Mr Martin said: “When we had the annual targets under Housing for All and when we exceeded those targets, the annual ones, the riposte was ‘well, you should have set the targets higher and they weren’t high enough'.”

“The bottom line is, we need 300,000 homes.”

He denied it constituted a removal of metrics on which the Government's progress is judged. Tánaiste Simon Harris said there would be completion figures and commencement notices published regularly.

What's your view on this issue?

You can tell us here

The plan itself has two distinct sections, the first dealing primarily with activating land and increasing housing supply. The second is focused on supports for people in homelessness, as well as broader housing supports like Help to Buy.

Among the measures within the plan is a review of the existing HAP levels, which is currently underway. Sources said the review would see payment levels increase.

“The minister came to a view it was time to look at those limits entirely. I think it’s a recognition that there’s a need to increase those limits,” one source said.

They said payment levels had not increased for a number of years, despite rental inflation continuing to climb.

HAP limits vary depending on the local authority area. In Cork City, the most recent Simon Communities of Ireland report showed there were no HAP properties available, given the rent was too expensive.

Government sources said one objective of the plan is to see a reduction in the price of housing, through the delivery of additional supply.

Measures within the plan also include:

· Additional €2.5bn for the Land Development Agency

· A €1bn fund to unblock and de-risk housing sites

· New €400m ISIF equity fund for small builders

· €100m for acquiring second hand homes for families in long-term homelessness

The total capital funding provided to the Department of Housing over the next five years is €35.9bn, with €28.2bn going towards housing while €7.7bn goes towards water.

The plan itself has been broadly welcomed by developers and homelessness charities, but they demand the Government ensure the proposals are properly implemented and say the Government will be judged on its results.