Varadkar: Makes sense to increase housing targets due to rising population and Ukraine

The State's plan, Housing for All, currently has a target of producing on average 33,000 homes a year, but can ramp up to 40,000. File picture

Taoiseach Leo Varadkar has said it makes sense for the Government to increase its housing targets to take into account the rising population and the number of Ukrainians that will remain in Ireland.

Mr Varadkar was speaking to reporters at a press conference alongside Housing Minister Darragh O’Brien following a housing conference with stakeholders this morning.

Opposition TDs said the meeting with homeless charities, developers and approved housing bodies was a PR stunt by Mr Varadkar and claimed that the State’s Housing for All plan was failing.

Mr Varadkar said the meeting was held because it was a new year, and he was now Taoiseach and believed it was appropriate to “delve deep” into the housing crisis. The State's plan, Housing for All, currently has a target of producing on average 33,000 homes a year, but can ramp up to 40,000.

Mr Varadkar said he anticipates the Housing Commission will give the Government advice on whether targets need to be increased.

“And, you know, I think given the rising population, given the fact that a large number of people have come from Ukraine, many of whom will stay, it makes sense to me that we will need to revise upwards those targets,” the Taoiseach said.

He said 70,000 units, mostly apartments in cities, have planning permission but have not gone to construction and the meeting heard ways on how to “de-risk that and get those homes being built”. 

Mr Varadkar said other measures that could see these developments get underway would be the advanced purchasing of homes and apartments by the State.

“If we say to the builder that if you build it, we will buy it, or at least we will guarantee a certain price that directs the development and means that it can go ahead and go to construction,” he said.

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When asked if tax breaks for developers are under consideration by the Government, the Taoiseach said nothing is off the table at this stage and all proposals will be considered.

Housing Minister Darragh O’Brien defended his plan saying there is no other housing plan out there and it was a “living plan.” 

Mr Varadkar and Mr O’Brien were non-committal on increasing the annual spending of housing which currently stands at €4.5bn, however, Mr Varadkar said “we need to spend more on housing,” and said he believed other constraints such as limitations to builders and the price of materials will hold the State back on meeting its housing targets.

He also said there was no unanimity at this morning’s meeting between stakeholders on whether the eviction ban should be extended beyond the end of March and the meeting provided a lot to reflect on.

Mr O’Brien also said he would like to see the €500 tax credit for renters extended into the future, but it would form part of budget talks down the line.