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The Government should buy up thousands of homes left empty in the property slump to reduce homelessness, a leading charity said today.

The Simon Communities of Ireland said around €2 billion must be ring-fenced for social and affordable housing next year to meet commitments to cut the number of people sleeping rough.

Patrick Burke, the charity’s chief executive, said the Government should take advantage of cheaper property prices to boost its housing bank.

“Due to the economic downturn, house prices are lower than they have been in years,” he said. “Investment in housing would provide a much-needed boost for the construction sector, and increased availability of social and affordable housing would alleviate the problems of many people experiencing and at risk of homelessness.”

According to the 2006 census, there are 1.77 million homes in the country and 216,535 are lying empty.

Simon Communities claimed more than 15 per cent of the total housing stock was permanently vacant.

“(It is) a shocking statistic when you consider how many people are at risk of homelessness, experiencing homelessness, or living in sub-standard accommodation.”

Some 12,400 social and affordable homes were supplied last year - almost 3,000 units short of the required 15,000 annual average target, according to Simon.

The charitable organisation claimed €1.93 billion  was needed next year to provide the 44,000 units pledged under the National Development Plan and the social partnership agreement, despite the grim economic outlook.