By Cate McCurry, PA
The Minister for Housing said there will be no delay in building social and affordable housing due to the ongoing rise in construction costs.
Darragh O’Brien said the rise in inflation and material costs has been slowing down, while supply chains “have improved”.
A report from the Banking and Payments Federation Ireland (BPFI) said the increase of new homes has eased the growth of housing prices, but it could be off-set by the rise in construction materials.
There are concerns that rising building costs will lead to missed housing targets for the year.
Annual inflation for building and construction materials was at 18.2 per cent in April.
Mr O’Brien said the report from the BPFI was based on the first quarter of the year before the Government approved the scheme to pay up to 70 per cent of builders’ inflation-related construction costs, which was introduced last month.
He said the scheme has been well received by the construction sector.
“That will ensure there will be no delay in so far as the delivery of social housing stock or affordable housing stock we are working through,” Mr O’Brien added.
“Everyone knows the inflation issues we are grappling with in Ireland is not unique to us. It is due to the war in Ukraine. Thankfully we have seen that slowing down somewhat, the inflation and material cost. The supply chains have improved as well.
“We are targeting this year 24,600 new builds which will be substantially more on last year when just 20,000 (were completed).”
Asked whether there are any further Government plans to mitigate the costs of buildings materials, the Fianna Fáil minister said it will require Cabinet approval.
“There are many small builders and others who are actually engaged in social housing and affordable housing schemes right across the country,” he added.
“So the burden sharing that we brought in, which has been broadly welcomed by the sector, will help greatly in that space.
“Any other measures that we would take into the future, on any issue, be that housing, education or childcare would be a matter for government decide as a collective.
“We need to get this scheme bedded down now, and I think it will help greatly.”
Mr O’Brien made the comments as he officially opened 21 one-bedroom facility, purpose built for seniors and people with disabilities in Ballinteer in south Dublin.
Despite the scheme being approved in 2015, it took seven years to complete.
Mr O’Brien said there are learnings to be made from the scheme, saying it took too long to complete.
“We’ve improved the approval process within our department to a one-stage approval process for schemes under six million, which literally means it doesn’t have to go back and forth, back and forth between the department and local authorities,” he added.
He also said the homes of the elderly residents who have moved into the facility will be freed up and become available to the Dún Laoghaire housing stock.
