THE GOVERNMENT is to review the effectiveness of a controversial section of the Planning and Development Act which seeks to increase the supply of affordable homes. TIM O'BRIENreports.
The review, which is to be announced by Minister of State for Housing Batt O'Keeffe today, will coincide with the publication of a report from the Affordable Homes Partnership on increasing the supply of new homes.
It also follows the announcement by Dublin City Council that it has closed its application lists for affordable housing until the end of the year. The council's housing department said it had been forced to close the list from April 21st and would not reopen it until December 31st because it cannot cope with the volume of applications.
Affordable homes are those which property developers are obliged to release at cost to local authorities under Part V of the Act. They can also be had as part of a shared ownership scheme in which the local authority and homemaker jointly share ownership of the property.
There are also schemes under a 1999 Act which incentivised local authorities to acquire land for affordable home building, either directly by the local authority, or by housing associations.
While the Affordable Homes Partnership report has found the supply of such homes has increased from about 2,000 units in 2004 to 3,600 in 2007, it makes a number of suggestions (see panel) on speeding up the delivery of housing.
Of these, the most controversial is likely to be the removal of the time limit on the claw-back measure.
Under existing schemes a local authority is entitled to a share of the profit if the affordable home it supplies is sold within specified time limits, usually 10 years. After this, the homeowners may keep whatever profit is achievable.
The Minister will begin his review with an appeal for submissions from interested parties and will also be discussing the report with social partners and housing practitioners.
Affordable houses: key points
The Affordable Homes Partnership report suggests the following measures:
• Better strategic management of delivery of new homes
• Improve existing schemes
• The provision of a standard shared equity product across all local authorities
• Removal of time limit on the claw-back mechanism
• Better management of the stock of affordable housing
• Involvement of private sector financial institutions