It has become clear that the supply of affordable housing
for first time buyers in County Leitrim has diminished drastically
over the past 12 months.
If supply continues to dwindle this will also increase house
prices. Based on recent planning applications granted can Leitrim
County Council estimate if this situation will improve over the
foreseeable future and if not as a local authority should we not be
concerned as it is our stated ambition (in various documents) to
grow this county’s population.
Minutes:
To consider the following Notice of Motion submitted by Councillor Enda McGloin;
"It has become clear that the supply of affordable housing for first time buyers in County Leitrim has diminished drastically over the past 12 months.
If supply continues to dwindle this will also increase house prices. Based on recent planning applications granted can Leitrim County Council estimate if this situation will improve over the foreseeable future and if not as a local authority should we not be concerned as it is our stated ambition (in various documents) to grow this county’s population."
Report by Director of Services for Economic Development, Planning, Environment and Transportation.
"The submitted question is both topical and timely considering the development plan review and ongoing housing discourse nationally. In reality, the supply of all new housing units in multiple house developments in Leitrim has been stagnant for more than a decade with the only new units brought to the market consisting of units in former incomplete or unfinished housing estates. Currently the cost of construction coupled with stringent Building Regulations incorporating climate change measures in terms of energy efficiency would appear to make it generally unfeasible for private developers to build multiple houses in Leitrim at a price which has the potential to cover land acquisition, construction costs to current standards and a reasonable profit element while at a level where potential homeowners can secure mortgages to buy. In addition, in accordance with the requirements of the Planning and Development Act 2000 (as amended) 10% of the units in a development must also be allocated as social housing. The Planning Authority recently granted permission for the development of 40 units at the Priors Point estate in Carrick on Shannon and this is currently the subject of a third-party appeal to An Bord Pleanala. However, the Council does recognize the need for an increased housing supply in order for the County to continue its attractiveness as a location for new residents and indeed businesses.
The Department amended the legislation a number of years ago as it considered at that time with the fall in house prices nationally that there no longer was an issue with regard to affordable housing given the low cost of housing within the housing market. This situation has changed radically with the stated intention of the Minister to reintroduce an affordable homes model requiring an additional 10% of units being provided as affordable.
Last month Circular 23/2021 was issued by the Department where the government reiterated that the Programme for Government 2020 ‘Our Shared Future’ is committed to ensuring that affordable housing is available to everyone in society and commits to state backed affordable housing where affordable housing will be delivered on Local Authority lands. The Affordable Housing Bill was passed by the Dail recently providing for affordable dwelling purchase arrangements, cost rental and shared equity basis. First-time buyers could also avail of the existing Help-to-Buy Scheme which gives tax relief up to 10 per cent of the property’s value (to a maximum of €30,000).
As part of the County Development Plan review process, the Planning Authority have engaged consultants to prepare a Housing Needs Demand Assessment (HNDA) which is the sole basis of determination of demand for housing units as prescribed by the Department of Housing, Local Government and Heritage. It is the Planning Authority’s intention to facilitate the delivery of affordable housing where the HNDA identifies such need, and this will be reflected in the upcoming draft Development Plan for your consideration later this year."
Councillor Enda McGloin welcomed the response received and complemented the Planning Section in bringing unfinished housing to a standard to satisfy market demand. He welcomed that a process is included in the County Development Plan to determine housing need and he acknowledged the content of the Departments Circular in respect of affordable housing.
Councillor Enda McGloin said the provision of affordable housing is a crisis facing Leitrim if we wish to grow our population and it will have to be addressed in the County Development Plan.
Councillor Des Guckian said the Government’s Housing policy is failing miserably.
Councillor Justin Warnock supported the motion.
In supporting the motion, Brendan Barry said the cost of materials and the zero discharge are barriers for people building houses.
Mr Bernard Greene, Senior Planner outlined that as part of the County Development Plan review process, the Planning Authority have engaged consultants to prepare a Housing Needs Demand Assessment (HNDA) to cover the life of the plan, and this is the sole basis of determination of demand for housing units. It is the Planning Authority’s intention to facilitate the delivery of affordable housing where the HNDA identifies such need, and this will be reflected in the upcoming draft Development Plan. A requirement of the Planning and Development Act 2000 is that 10% of the units in a development must also be allocated as social housing generally in schemes of 9 units or more housing units.