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education spend Ramping up LEARNING INVEST IN Ireland’s dedicated Magazine for the public sector, semi state bodies and civil service civil and bodies state semi sector, public the for Magazine dedicated Ireland’s
Ireland’s dedicated Magazine for the public sector, semi state bodies and civil service HISTORIC N ō 11 LIFFEY FERRY RETURNS
Dublin’s historic No. 1 Liffey Ferry Richie Saunders with the aim of has officially returned to the capital’s bringing her back to service. waters after a 35-year absence. The The new service has capacity for service, to cross the Liffey dates back 18 people at a time and commuters to 1665 when it was given a Royal making the trip across Docklands pay Charter by King Charles II and went €2 for each three-minute journey on to last more than 300 years. between three points – the 3 Arena The No. 11 was essential transport to Sir John Rogersons Quay to MV Cill for workers at the docks and became Airne at North Wall Quay and back, affectionately known by Dubliners running Monday to Friday between as ‘the dockers taxi’. The boat was 7am and 7pm. The vessel is equipped bought by Dublin Port Company to accept both leap cards and cash in 2016, having been preserved by fares.
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Public Sector Magazine Proudly Contents
Ireland’s dedicated magazine for the Public Sector, Semi State Bodies, representing Local Government, Healthcare and Frontline Services Dáil Éireann 13 Market news 72 Delivering for Cork News and updates on the social Cork County Council builds on housing scene its successes 21 Initiative Ireland 74 Grand Ambitions Delivering social impact finance South County Dublin steps up to staff Managing Editor 23 Housing Prospects the housing challenge Tommy Quinn Counting the cost of Covid 79 Laying the foundations 25 Housing Action New homes unveiled in Cork Staycations Feature Editor: Minister, Darragh O’Brien’s housing 80 Learning from Covid and 80,000 others across the Trish Phelan plans Fold Ireland wants the same 28 Tackling the Affordability crisis urgency applied to social housing civil and public service, semi-state Sales Ó Cualann Co-housing keeps its promises 84 NEHE Aims High Martin O’Halloran 33 Time for Change Meet the housing professionals Helen Fairbrother Finance Minister calls on construction 86 Homeshare organisations, the voluntary Paul Halley sector to embrace innovation Sharing accommodation Michael Quigley 34 Fair Play to You across generations Linda Hickey Play The Care Trust lottery 88 The Right Response and community sector, and 37 Home Seekers Charting the progress of Respond Production Manager The rise of HAP Housing Agency Joanne Punch 38 Peace Plus 92 Oaklee’s Agenda private companies. The future of EU cross-border Gearing up to deliver on a 3-year Ad Copy funding post-Brexit corporate strategy. Sinead Power 42 Xpert DPO Makes its Mark 94 Role Model Hannah Punch Bringing the X-factor to market Take note of Sophia Housing 47 Act Now 99 Rapid-Build Contributors Urgent action needed to fight Horizon offsite delivers Jacqueline Bragg homelessness 100 The future is metal 52 Taking the Lead Housing solutions from Metal Frame Design LGMA leads on public sector innovation Construction Minx Design 54 ICSH Driving Choice 102 Best-in-Class Service [email protected] Developing a sector with a wider Shareridge’s innovation culture housing choice 104 Modular Solutions 56 The Housing Agency Onwards and upwards with LMC forsa_union_ie Promoting sustainable communities. 106 Smarter Builds The Public Sector Magazine is an informative guide for Government, Civil, Public Sector and 58 Homes in the Capital Cpac Modular: A faster, greener and forsaunionie Semi State decision-makers. It is distributed Dublin City Council remains on track smarter way to build. to, amongst others, Government Ministers, 62 A Co-operative Success Story 108 Home Building Finance Ireland Fórsa Trade Union Ministers of State, Dáil Members, Senators, Secretaries of Departments, Deputy Secretaries, The myriad benefits of co-operative style Bridging the funding gap Assistant Secretaries, Principal Officers, CEO’s of Fórsa trade union State and Semi-State Bodies, County Managers, social housing. 112 Bringing Home the Beacon County Councillors, Purchasing Officers, Press 66 A Forever Home with Clan Capital Solutions supporting the forsa_union Officers, IT Managers and Training Officers, the HSE, Emergency Services, Doctors, Financial Age-friendly housing provision of Social Housing Institutions, Unions, Representitive Bodies, 68 Brighter Futures 116 Tried and Tested forsa.ie Embassies, Public and Private Partnerships and Political Commentators. SVP Housing - building a better future BHP Community - trusted insurance Nerney’s Court, Dublin, D01 R2C5 n 01-817-1500 for vulnerable citizens provider to Ireland’s (AHBs)
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HBFI A4.indd 1 08/12/2020 12:20 Public Sector Magazine
118 Recovery Through Collaboration 148 Ventilation is Key 188 Help is At Hand The power of partnerships will It’s all about good air quality Unprecedented demand for drive recovery 150 Fingal Rises to the Challenge support services 122 Society-Centered Design Housing delivery in Fingal 193 Burglary Awareness Campaign RIAI focusses on driving excellence continues at pace despite Covid Lock up - light up in the built environment 154 Mayo Rises to the Challenge 196 Pro-Active Policing 126 Planning a Place Called Home The strain Covid-19 has placed on local Towards a partnership based, Internationally renowned Van Dijk government finances community-orientated policing Architects moves into housing 158 Celebrating 70 201 HSE Social engagement 130 Counting Costs Jennings O’Donovan calls for Community engagement for a McGahon Surveyors provide cost an ambitious capital-investment successful vaccine rollout certainty in uncertain times programme 203 PLACEengage.com 134 The New Building Block 163 Sligo Looks to the Future The science and soul of place The upside of modular housing Regional development to 205 The Education Divide solutions transform Sligo Only 10% of third level students are 136 Engineering Excellence 164 Donegal Road Safety Chief from disadvantaged areas The rise of PMEP “You are better late than dead” 210 A New Era for Cork Libraries 139 Covid and CO2 169 Staycations Cork City Council Libraries look Declining emissions predicted to Stay at home and spend to an exciting future increase again in 2021 175 The Health Challenge 214 NCCA Shaping Childhoods 140 Go Green Seeking a cure for the health system The curriculum challenge Emissions targets can be met say Irish 181 Winning Combination 215 Counting on Educate.ie Green Building Council HSE wins innovation award Educate.ie garner plaudits 143 Greener Homes 185 National Services Day during Covid Eamonn Ryan’s retrofit-led recovery Honk for our heroes 216 Education is Key 146 All Hands to the Pump 187 Out at Sea Ramping up investment in education Air source heat pumps play a key role Busy year for the coast guard in reducing emissions despite Covid
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Garda mag DPS.indd 1-2 16/12/2020 10:31 Public Sector Magazine
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@ 06633
ICSH A4.indd 1 29/01/2020 16:34 Social Housing Edition In the News
The latest news from Ireland’s public sector - MORE SOCIAL k0 HOUSING NEEDED 0 The state should increase the supply of social and affordable housing to offset the impact of the Covid-19 pandemic on 00000 the long-term supply of new homes, according to a recent study by the Economic and Social Dr. Conor O’Toole, senior research Research Institute. officer at the ESRI The authors say the crisis is likely to exacerbate supply issues already present in the property market and lead to a sharp increase in price when demand recovers. k Dr. Conor O’Toole, senior research officer at the ESRI and co-author of the study, said demand for housing is currently low due to the impact Covid-19 has had on household incomes k and restrictions placed on viewing properties. The ESRI has called on government to intervene and increase the supply of social housing, which they say will offset reduced investment in HOUSE PRICE SURGE housing in the short-term. House price inflation has surged to more than 6%, the fastest pace in nearly three years, according to the latest house price k- report from property website MyHome.ie. k House prices increases of 4.8% in Dublin and hikes of 7.2% elsewhere in the country was due to a number of factors, including Government supports protecting incomes and removing the risk of forced selling as well as a continuing deterioration in housing supply, the report said. The findings dispelled earlier warnings that the Covid-19 pandemic could see ‘double-digit’ price reductions in the housing market. The authors said the data confounded earlier warnings that the housing market could see “double-digit” price slump in 2020 and October 2020 saw mortgage lending reach a new high. The average asking price for new shomes nationally is €284,000, while the price in Dublin is €392,000 and elsewhere around the country it is €238,000. The author of the report, Conall MacCoille, chief economist at stockbroker Davy, said that further house price increases were SKY HIGH MORTGAGE RATES @ now likely in 2021. 06633 “As we head into 2021, homebuyers have saved additional Mortgage rates in Ireland remain the second highest in the funds to purchase homes, with sentiment helped by the likely eurozone, according to recent statistics from the Central Bank. recovery in the economy as vaccines are dispersed. The average interest rate on new mortgages was 2.79% in “Given that homebuilding will remain impaired, with banks October. This is down 0.14% compared to the same month last seeking lending opportunities, too much cash is chasing too few year. But it is over twice the average across the euro area and homes – which can only push prices higher.” second only to Greece.
the Public Sector Magazine 13
ICSH A4.indd 1 29/01/2020 16:34 Public Sector Magazine
HOMELESS HEALTH SUPPORT BOI APPROVES €320M FOR HOMES
The Peter McVerry Trust has welcomed the additional €5.1m in Despite numerous questions about the impact of Covid on funding for health supports for homeless services. The funding the housing market, Bank of Ireland has approved more than was announced by Minister for Health Stephen Donnelly during €320m in funding for residential property development since a visit to the Dublin Homeless Covid-19 response service, which the start of the pandemic. is being operated by the Peter McVerry Trust. This will deliver around 2,300 new homes over the coming The additional funding will help support people experiencing years. The total funding approved has declined from the €365m homelessness to access essential health services during the ongoing in funding approved over the same period last year. Michael pandemic, according to Pat Doyle, CEO of Peter McVerry Trust. Murray, senior director, Bank of Ireland said the funding “Any interest in funding for health services that enable people includes provision for around 675 social housing units. impacted by homelessness to get the support they need will result Together with Dublin, other locations to benefit include in better outcomes and help to reduce homelessness,” he said. Limerick, Mayo, Kilkenny and Donegal.
AIB’S €300M HOMES FUND
AIB has launched a €300m fund which will help build more than 2,000 social housing units. The funds will be given HOME OWNERSHIP RATES PLUNGE to Approved Housing Bodies and developers. Home ownership rates have not percentage of Irish households that “Having fully allocated our initial recovered since before the financial crisis owned their homes outright or with €100m social housing funds, it is vital while the number of households renting a mortgage fell from 74.7% to 67.6% that AIB continues to support the sector has soared by 56%, according to figures while households classified as renting in delivering new stock,” AIB chief Colin from the Central Statistics Office. rose to 469.671 in 2016 from 301.306 in Hunt said. Between 2006 and 2016, the 2006.
14 the Public Sector Magazine Social Housing Edition
CALL TO PROBE HOUSING TENDERS
An investigation into the rising cost of social housing tenders in Dublin needs to be carried out, according to Sinn Fein housing spokesman, Eoin O’Broin. Following the significant hike in tender prices for social housing and in Part V acquisition costs in the capital, he said: “There has been growing concern with the dramatic increase in tender prices for social housing and the acquisition costs of Part V units in Dublin city. “I intend to raise the issues of rising costs with the Minister. He should task the Housing Agency with investigating ROOM TO DOWNSIZE the issue and to produce a report with Sinn Féin’s Eoin O’Broin recommendations.” Almost seven in 10 people in Ireland are living in homes that are too large for their household needs according to new Eurostat figures. The figures show that Ireland (69.6%) had the third-highest share of people living in under-occupied dwellings in the European Union in 2019. Only Malta (72.6%) and Cyprus (70.5%) had higher rates. Ireland also had the second lowest share (3.2%) of people living in overcrowded households. In Spain (55.4%), Luxembourg (54.0%), Belgium (53.9%) and the Netherlands (53.4%) more than half of the population were living in dwellings deemed too large. In contrast, less than 15% of the population were living in dwellings deemed to be too large in Romania (7.7%), Latvia (9.6%), Greece (10.7%), Bulgaria (11.5%), Croatia (12.0%), Slovakia (14.0%) and Italy (14.2%). Almost every third person (32.7%) in the EU lives in under-occupied dwellings. The Republic’s high rate is believed to be linked to the large number of adults living in “empty nest” households, as well as the relatively larger size of BETTER TO BUILD THAN BUY traditional Irish families and associated need for more bedrooms compared with Figures provided by the Department developers in 2018 and 2019. most other European countries. of Housing to Sinn Féin’s Eoin O’Broin “The figures I received from the The figures show that more than 92 in response to a recent parliamentary Department of Housing show that on per cent of older people in Ireland are question reveals that building homes average, if you look at local authority build, living in homes considered too big for is cheaper for the Government than local authority turnkey acquisition and their needs. Meanwhile, 3.2 per cent of purchasing them. Part V purchases for every local authority, the Irish population were classified as The figures released to the Sinn Féin it is more cost effective for councils to build living in overcrowded households in housing spokesman shows how much local social housing rather than acquire units 2019, which increased from 2.7 per cent authorities paid for houses purchased from from private developers. the previous year.
the Public Sector Magazine 15
Public Sector Magazine
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Jennings O Donavan CMC A4.indd 1 08/01/2021 15:21
Social Housing Edition
PLANNING PERMISSIONS Designing Excellence UP 22%
The number of planning permissions in Ireland and Overseas for houses and apartments in the third quarter of 2020 jumped 22% to for 70 Years 12,942 from the same quarter in 2019, according to the new CSO figures. A large increase in the number
of planning permissions granted in the latter half of 2020 would appear to indicate that house building is beginning to recover from the disruption caused by Covid-19. However, some experts have warned that planning permissions may not be a reliable guide to the prospects of the troubled house building market Renewable Energy and both the ESRI and the Central Bank have both warned of the long-term Water Services damage which the Covid-19 crisis is likely to inflict on housing supply. In addition, the figures show Structures that one-off housing accounted for a significant share of the planning permits granted in the September Housing / Commercial quarter. The figures show that the Leisure / Recreation permissions in the quarter involved more apartments than houses — 7,214 were apartments and 5,728 were houses Health & Safety — received planning approval. That means, the CSO said, that there Planning was a 27.5% increase in the number of apartment permissions from the 2019 quarter, and a rise of just over 16% in Environmental the number of houses getting planning permission.
AXE HEIGHT LIMITS
The Housing Minister Darragh
O’Brien wants to scrap building height restrictions in certain designated areas. The Fianna Fail TD agrees with his
predecessor Eoghan Murphy who also Responsive Progressive Innovative opposed “arbitrary limits”. The maximum heigh for buildings in Dublin city is 60m but exceptions
are allowed in special areas. However, Offices in Sligo, Dublin and Castlebar Minister O’Brien also wants to build to
greater heights outside the capital. Head Office: “Even in the older cities in Limerick Finisklin Business Park, and Cork and Dublin, no one is living Sligo, F91 RHH9. above the shops,” Minister O’Brien said. T: 071-9161416 “It’s looking at the existing buildings E: [email protected] that we have, and why aren’t people W: www.jodireland.com living right in the corridor of the city.”
the Public Sector Magazine 17
Jennings O Donavan CMC A4.indd 1 08/01/2021 15:21 Public Sector Magazine
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ShareRidge A4.indd 1 08/01/2021 15:23 Social Housing Edition
RETROFITTING CENTRES OF EXCELLENCE
Minister for Further and Higher Education, Simon Harris TD, has confirmed four retrofitting centres of excellence are to open within the next three months. The centres of CONSTRUCTION CONTRACTS This was nearly four times the euro excellence will open in Limerick and Clare BY 45% area average of 12% and worse than the ETB, Mayo Sligo and Leitrim ETB, Cork height of the 2008 property crash. The ETB, and Laois and Offaly ETB. The Irish construction industry three-month period coincided with the ”Retrofitting involves making homes experienced its worst quarterly decline first lockdown which forced the closure more energy efficient and helping you on record between April and June with of nearly all outdoor building sites. to save money on your electricity bills,” output declining by a massive 45%, The CSO said the largest quarterly Minister Harris said according to the Central Statistics Office decline prior to this was a decrease of “The government has set ambitious (CSO). 13.9% in the fourth quarter of 2008. targets to retrofit 300,000 homes by 2030 but we need to ensure we have the workers to deliver it. “We will establish four centres of SOFTWORKS WORKFORCE excellence – four centres to train 2,000 people MANAGEMENT SOLUTIONS in retrofit skills, including Near Zero Energy Founded in Ireland in 1990 with a small team Buildings (NZEB) skills. and big ideas, Softworks aim was to create the “So, if you are a worker in the most sophisticated, innovative and easy to use construction area and you want to upskill workforce management software solutions in in the area of green skills, then this could the world! be for you.” Always a little ambitious they began by Retrofitting centres of excellence developing time & attendance solutions and provide the very highest standards of naturally expanded into other areas including training and qualifications to people rostering & shift management, flexible & attending them. This is a very important remote working, HR, employee self-service and area of the economy and there are huge absence management. employment opportunities within it. In the last 30 years they have pushed “In Laois & Offaly ETB, we will have through two recessions and a global pandemic. PicSoftworks CEO, Andrew Ferguson, a particular focus for Bord Na Mona According to Softworks CEO, Andrew Ferguson, employees, including a six-day Skills this has only made the company more resilient and determined to come up with new ideas and To Advance programme that offers solutions, to assist the growing number of organisations that they work with. the trainee an opportunity to gain a Today they have a suite of award-winning solutions and teams in Ireland, UK, Canada, Level 5 certificate in Thermal Insulation Germany and Italy. Softworks solutions have been designed with flexibility in mind and their Installation and this will be expanded to clients’ range in size from 250 to 50,000 employees. include Ventilation and Air Tightness. They work with a number of Public Sector organisations around the world including “We have a significant body of work to Government Departments, State Agencies, Councils, Housing Associations, Law Enforcement, do to ensure Ireland is climate ready and Education and Healthcare providers. we need workers to have the right skills to Their solutions make it easy for these organisations to manage areas such as employee deliver on these huge challenges, Minister hours, schedules, flexible & remote working, skills, training, holidays and absences. They assist Harris added: organisations to automate processes, reduce administration, generate reports and encourage “For people seeking work, or people employee self-service, while ensuring compliance with working time legislation and health & in employment, learning these climate safety. skillsets will ensure you are ready for the In 2020 they extended their market leading eRostering tool to include automated rostering/ future and are in the best place to find work scheduling, self-rostering and a whole host of additional benefits. For more see softworks.com into the future.”
the Public Sector Magazine 19 Public Sector Magazine
20 the Public Sector Magazine Social Housing Edition Taking the Initiative
Founded in 2015, Initiative Ireland is a social impact finance firm, specialising in the sourcing, funding and management of secured social, affordable and mid-market housing development loans across Ireland.
The company provides competitively priced loans, to experienced developers. Loans are co-funded through a platform by its community of Private, Corporate, Pension and Institutional clients, secured against Irish Real Estate for capital protection.
Challenge 1 – Tackling the social and affordable housing shortage
Housing Supply & Demand: Following a decade of undersupply and stagnation within the housing construction market, 2016 saw increased recognition of the emerging housing crisis amongst the media and body politic within Ireland. While recent figures do show a significant increase in the volume of housing stock being delivered to the market, the volume deliver good returns with lower correlations and wider portfolio of supply still falls significantly below demand nationwide, diversification benefits. There was a meeting of needs of both at around 52%. To offset this shortfall in 2019 would require the borrowers and a new type of investor - loan investors. The supply to increase 2.8x. solution further evolved with the arrival of Fintech Peer to Peer Also of concern is the nature or make-up of the 18,000 new digital platforms providing the structure for facilitating the housing units supplied which disproportionately fall outside of relationship between the two and consequently helping to fill the mortgage affordability range for a significant portion of the the market gap left by traditional banks. These developments Irish population. New Housing delivery in the greater Dublin were broadly welcomed by Governments and Regulators as area (GDA) is largely focused on servicing higher income they continued to support the economic and financial systems families and/or property investors. at a time when banks were at their weakest and scrambling to recover their financial sustainability. Housing Affordability Advantages of the new model Ireland’s current average gross household income stands at €57,200. With the Government “help-to-Buy” Scheme and The evolution of the new finance platform model proved to be assuming a 90% LTV Mortgage, our analysis indicates that such extremely efficient at matching (NBL) non-bank lenders (i.e. loan households would have only been able to access less than 5% of the investors) and borrowers for their mutual benefit. The advantages new housing stock delivered to the open market last year within for borrowers typically include loan finance availability; flexibility; the Greater Dublin Area (Dublin, Wicklow, Kildare, Meath). speed; competitive rates and quite often a more personal Within the Greater Dublin Area, the increased cost of relationship with their provider. Loan investors can access an asset construction and land acquisition costs are proving a challenge class previously only open to institutional investors; with attractive for those who aim to deliver housing for lower income families. risk-adjusted rates of return; low volatility; and low correlation With mortgage borrowing capped by the Central Bank at 3.5x to other asset classes. Where a loan is also secured by a first legal income for households nationwide, lower income households charge over property and the borrower provides a meaningful in GDA are being locked out of the market too soon in the cycle. level of their own equity – this brings an additional level of This is cooling the supply of housing aimed at the lower-end comfort in both the security, collateral and the buffer offered by the of the market, forcing lower-income families into a rental trap, borrower’s own equity contribution. paying unsustainable rents, without security of tenure. Initiative Ireland has established itself as a trusted funding partner to experienced developers across Ireland focused Challenge 2 – Addressing the on delivering the much-needed energy efficient social and need for alternative investment affordable homes. Equally so Initiative Ireland is actively opportunities engaging with Irish (AHBs) Approved Housing Bodies with the objective of offering suitable funding solution. The Global Financial Crisis had also resulted in sizeable investment losses for investors and increased correlation in Should you wish to get in contact with Initiative Ireland to discuss either an performance across the traditional asset classes. This prompted investment loan opportunity or as a potential borrower please feel free to investors to seek out new asset classes with the potential to contact Declan O’Brien, at [email protected] or on 01-685 9259
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advert sponsored by eco build Social Housing Edition Covid Disrupts Housing Plans
Home planning permits surge but industry experts warn that that planning permissions may not be a realistic indicator of prospects for a challenging home building market.
The number of planning permissions granted for new houses and apartments in the third quarter of 2020 increased by 12,942, a 22% increase on the same quarter in 2019, according to figures from the Central Statistics Office (CSO figures). The figures show that the permissions in the quarter involved more apartments than houses — 7,214 were apartments and 5,728 were houses. That means, the CSO said, that there was a 27.5% increase in the number of apartment permissions from the 2019 quarter, and a rise of just over 16% in the number of houses getting planning permission. While a surge in the volume of planning permissions granted may indicate an impending recovery in new home construction, industry analysts continue to sound the alarm about the likely long-term damage which the Covid-19 pandemic is likely to inflict on new housing delivery. Economists from both the ESRI and the Central Bank, among others, have warned that the Covid-19 lockdowns will set back house building here for many years to come. The majority be interrupted by recurrences and additional waves of the virus. of analysts agree that only around 20,000 new homes will be “With construction turnover at €18 billion, it represents 5.4% completed this year, significantly below the 35,000 units most agree of total projected GDP for 2020 of €331 billion. This is well below are required to be built each year for to meet housing demand. the EU average of 9%, reported by the European Commission. “ While the full impact of the COVID-19 pandemic on the Irish A number of other Government stimulus plans are economy and the construction industry will take time to emerge, also welcome, according to Ashe, including the enhanced Stephen Ashe, Director at Lineseight says it is already clear that levels of support for the Help to Buy incentive, the Credit it has been substantial and wide-reaching. Construction activity Guarantee Scheme, the Pandemic Unemployment Payment, the declined by a record 45% between April and June 2020. Employment Wage Subsidy Scheme (which will now run to the Ashe points out that the Government is now operating the end of March 2021) and the temporary reduction in the standard national finances with a deficit of €18.5 billion and our economy rate of VAT from 23% to 21%. is expected to shrink by 8.5%. This is a direct result of the ongoing The impact of COVID-19 on the commercial sector remains cost of the pandemic and the government stimulus packages. to be seen, but at a minimum, Ashe says that clients are re- “Additional public investment has been provided in direct assessing their space requirements and are reviewing options response to COVID-19, as well as through the July Stimulus around futureproofing designs. This will allow the occupiers of Plan, and public expenditure is planned to increase by 12% office space to respond quickly to changes in business practice, in 2021. It is also encouraging to see the Government sticking such as headcount growth and contraction, new ways of broadly to the Project 2040 ambitions,” he says. working, social distancing and flexible working. “As outlined in the Build 2020 report prepared by the Meanwhile The Goodbody Analytics BER Housebuilding Department of Public Expenditure and Reform, total investment Tracker indicates a 33% year-on-year reduction in house in building and construction grew by an estimated 11% in 2019 completions in Q2 2020, representing the largest annual decline to €27 billion. However, it could decrease by up to 35% in 2020 in house building in eight years. It is noted, however, that due to a fall in public and private sector investment, to reach in figures are beginning to rebound, and the expectation is that the the region of €17.9 billion.” year-on-year reduction will stand at approximately 20% by year “This is a substantial impact on the construction industry, end (equating to circa. 16,500 units). and while we are seeing cautious optimism in terms of existing The figures are still less than half of what is required to projects proceeding and new pipeline, a recovery is largely tackle the housing crisis, with the Central Bank estimating that dependent on the duration of the pandemic. As is to be expected, 34,000 new homes must be built every year for the next decade the path to recovery will not be straightforward, and is likely to to meet demand.
the Public Sector Magazine 23 Action Plan for Housing and Homelessness
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Mayo CoCo Housing 2020 A4.indd 1 08/01/2021 15:44 Social Housing Edition Towards Affordable Housing for All
A new housing plan is due to be announced by Housing Minister, Darragh O’Brien, which will set out plans to deliver 50,000 social homes.
Minister for Housing Darragh O’Brien said that the Covid-19 the significant restrictions during Q2,” he said pandemic has been a “serious impediment” to the building of “Looking ahead, it is extremely important that we mitigate new social housing in the State as figures showed that just 725 the impact of Covid-19 on overall delivery to the greatest extent were built in the first six months of the year. possible. Our goal is to provide housing support to some 27,500 The Social Housing Construction Status Report revealed households this year and I am committed to delivering on that.” there were 1,467 built, acquired, or leased homes delivered up Insisting that the overall under-delivery on new build was to the end of June 2020. Of the 1,467:725 were new builds while unavoidable as a result the pandemic, he said the priority now Local authorities provided a further 355 and Voluntary housing is to get back on schedule. “The focus now rightly turns to organisations delivered 387 further homes. getting new builds back on track and new activity continuing to The dramatic slump in social housing output is raising move at pace,” he said. concern over the state’s ability to meet long-term targets, In relation to the wider housing market, recent research particularly if Covid-19 continues to significantly dispute the commissioned by the minister from the ESRI indicates that industry. The government set a target of building 7,736 social we need to be delivering 33,000 homes per year. Other experts homes in 2020 and just 10% of that figure has been achieved suggest that this does not go far enough and a new study by in the first half of the year. It is now the third year in a row in industry body, Irish Institutional Property suggests that 47,000 which the Government has missed its own target for building houses need to be built each year for the next five year to meet new social homes. market demand. Last year, over 10,000 social homes were delivered. IIP claim that 30,000 new homes per annum is merely the While acknowledging the scale of the current crisis, Housing minimum requirement in order to meet population changes Minister, Darragh O’Brien, has insisted that his department alone, with net migration and changes in household size also remains committed to delivering 50,000 public during the likely to be key factors driving demand. The figure of 47,000 government’s term in office. , suggested in the report is almost twice that laid down in the “These figures show that delivery of social housing has been government’s Project Ireland 2040 plan, which set a target of very much impacted by the outbreak of Covid-19 in late Q1, and 25,000 per year.
the Public Sector Magazine 25 Building homes is a partnership
Since 1973 Co-operative This is my forever home, it’s Housing Ireland and its the best thing that could ever members have built 6,000 homes through partnership happen. It’s your own space, it’s with county and city councils, your own freedom, and I think government departments, everybody should have builders, and developers. “ that freedom. We believe that by working Sandra, Co-op Member co-operatively we achieve more, delivering sustainable, happy communities, and The delivery and construction lasting relationships – everything in life starts of a house is only a snapshot” in at home. time. There is a whole life after the houses are completed, and it’s so important to know the houses will “ be well-managed and people will enjoy living in them. Visit: www.cooperativehousing.ie Housing developer email: [email protected]
Cooperative housing Ireland A4.indd 1 ”08/01/2021 15:46 Social Housing Edition
Minister for Housing, Darragh O’Brien
“It highlights the scale of the challenges,” Minister O’Brien Minister O’Brien says the scheme will boost housing supply said. “We need to build up capacity and we need to be realistic as it helps to guarantee sales by bridging the gap between the about how much we can build in a given year.” Central Bank rules and the actual cost of a home for ordinary “We’ll move on to a new housing plan in relation to the income families. delivery of public homes in 2021. 50,000 new homes is our target, €75 million will be assigned to the affordable housing with the vast majority of those being built. I have changed the scheme which is being introduced in conjunction with a new focus from ‘acquisition’ to ‘build’ in relation to public housing.” €35 million Cost Rental Equity Loan (CREL) scheme. which will The €3.1 billion housing budget was broadly welcomed by deliver 400 homes and see tenants paying 25% to 30% below industry representatives and Minister O’Brien’s says it is a sign market rents. of the Government’s intent to address the housing challenges. The Programme for Government, Housing for All, commits The government’s affordable housing plan will see the the Government to the development of a new cost rental housing State take up to 30% equity in a home and Minister O’Brien sector in Ireland, in which the rents charged will be set to cover has reaffirmed that no arbitrary salary cap will be applied to the costs of delivering, managing, and maintaining the homes. the long-awaited scheme. Under the scheme the state takes an The CREL scheme will accelerate the implementation of this equity loan share of up to 30% in your home while the owner new cost rental sector by AHBs, prior to the delivery of further takes out a mortgage with a bank on the remainder as usual. homes by the Land Development Agency and directly by Local Speaking shortly after the launch of the scheme, Minister Authorities. O’Brien said: “We are looking at a shared equity type arrangement. The scheme will see long-term loans on favourable terms There will be no arbitrary salary caps, that’s really important,” he made available to AHBs to cover up to 30% of the development said If you are a couple working in two decent jobs, they’re going or acquisition cost of new cost rental homes. This state to be [earning] over €75,000. They are left renting, paying an assistance in securing financing will mean that AHB landlords exorbitant rent, and they can’t save enough to buy.” can set lower cost-covering rents for cost rental tenants. “In some instances, people won’t want the full 30 per cent It is expected that the remaining development or acquisition State equity, maybe the affordability gap is smaller so they costs for the homes will be met by long-term commercial loans might go for 10 per cent or 15 per cent equity.” from the Housing Finance Agency, which has confirmed it will The scheme will be open to all new build homes subject make a corresponding €100 million available next year. to price caps and is targeted at first time buyers with some “Approved Housing Bodies have consistently demonstrated exemptions for separated individuals. The government believes their capacity and expertise in developing and managing homes the new support will save potential owners up to €11,000 per year for the social housing sector,” Minister O’Brien said. “This in rent and in the long term save the state rental support payments. new scheme provides for an expanded role for the AHB sector, The minster also referenced a similar scheme in Britain enabling it to support moderate-income households in need of which he said increased supply by 50 per cent without resulting quality, affordable homes.” in any house price inflation. “This one will not either,” he said. As the country possibly faces into further restrictions While the final details of the scheme are being negotiated in the week and months ahead, Minister O’Brien said he is with stakeholders and will be subject to state aid approval from determined to keep construction sites open and avoid any the EU Commission, the plan is set to be approved by Cabinet further heavy disruption to housing output. “Construction will and will come before the Dáil in early 2021. The launch of the remain an essential service. I do not envisage a shut down in the scheme is due to take place in summer 2021. construction sector,” he said.
the Public Sector Magazine 27 Public Sector Magazine Tackling the “affordability crisis”
Entrepreneurship is about approaching things differently and creating a success story. In co-founding Ó Cualann Cohousing Alliance CLG in September 2014, entrepreneur Hugh Brennan promised himself that he’d make a difference in terms of addressing the dire shortage of affordable housing available in Ireland.
Brennan has kept his promise to make a difference, with were earning income above the threshold to qualify for social thousands of people across Ireland benefiting from the initiative housing and yet they were not in a position to afford to he took six years ago to deliver affordable and fully integrated purchase accommodation on the private market,” he adds. housing. Not one noted for sitting back and waiting for things “Effectively we discovered that some 80,000 to 90,000 people to happen, Brennan continues to drive his brainchild forward. were earning too much to qualify for social housing and not Ó Cualann Cohousing Alliance CLG is a housing co- enough to be able to purchase a home on the market. They were operative with Approved Housing Body (AHB) status. A left out in the cold. They weren’t being looked after at all.” not-for-profit company limited by guarantee, it is governed by a Involved in construction all his life – including stints voluntary board of directors. constructing houses in charitable projects in years past in The agency’s principal aims are to develop and support Haiti and South Africa - the Bolton Street, Dublin engineering fully-integrated communities, to deliver well-designed, top- graduate remains the public face of Ó Cualann Cohousing quality, energy efficient homes at an affordable price and to Alliance plus the now renowned Ó Cualann ‘model’. It’s ensure its co-operative model for affordable housing can be a ‘model’ that is favoured greatly in Sweden and has been replicated and scaled across the country. lauded by a slew of vested interests, including successive Irish Ó Cualann has grown and developed at an impressive government housing ministers. rate. Having hit the ground running, it continues to use its Through their model, Ó Cualann delivers well-designed, unique modus operandi to forge a better future for more and top-quality, energy efficient homes at an affordable price for first more people on the nation’s housing list. “When we set up time buyers hoping to get on the property ladder. The people the organisation in 2014, we took a different approach having at Ó Cualann believe their model can be replicated and scaled concluded that the housing crisis was actually an affordability across the country and are committed to working with local crisis,” Brennan, Ó Cualann’s Chief Executive Officer, explains. authorities and like-minded groups to change the way housing “Our research showed us that around 40% of the population is delivered in Ireland.
28 the Public Sector Magazine Social Housing Edition
Working together with local apply to us for a house, then it’s a first authorities and availing of the land and come first served basis. other supports that have been made “If someone meets the eligibility available to it, Ó Cualann has experience criteria then the process of financing the and a proven track record in providing purchase kicks in, a process which ends affordable homes to people. “Our with the applicant buying the house with organisation is one of the few who are the help of a mortgage received either engaged in the provision of affordable from a bank or from Rebuilding Ireland. housing, allowing for fully integrated “As regards, construction and finance, communities to blossom and prosper and we organise that through the banks or where tenant and owner members live through our interactions with private side by side, sharing common amenities.” investors and private companies. For Brennan tells us. instance, a charitable trust might come “The vast majority of housing bodies to us to loan us the money to build the are engaged in managing social housing on houses because their risk is so low because behalf of local authorities whereas we first we have such a demand and the units are build and then sell affordable housing to pre sold, so they get their money back. people who meet certain eligibility criteria “It’s important to say too that which are agreed with local authorities Hugh Brennan, Ó Cualann’s Chief homeowners who sell within 10 years from whom we source the land.” Executive Officer will have to pay a “clawback” fee to us The American writer Mark Twain – which is related to the discount on the author of Huckleberry Finn – famously “The agency’s purchase price.” once told his audience to “Buy land; they Interestingly, the local authorities aren’t making it anymore”. And for Hugh principal aims take a hands-off role with regard to the Brennan, that’s a truism that is at the heart allocation of Ó Cualann Cohousing of the principal challenge his organisation are to develop Alliance inspired houses. Instead, Brennan faces in attempting to make an even more and co. engage an independent assessor significant indentation on the list of those and support who assesses whether the applicant(s) waiting to access quality, energy efficient, meet the eligibility criteria or not. affordable homes via the Ó Cualann model. fully-integrated The independent assessor runs the “Our model worked from day one and rule over the applicant(s) income limits continues to work but the big problem is communities, and investigates whether the applicant(s) access to the land,” Brennan says. “We could will qualify for a mortgage. build forever if we had access to more land to deliver well- Although great strides have been but getting local authorities to release land is made in eating into the numbers seeking pretty difficult. designed, top- to avail of affordable housing, Ó Cualann “In fairness to Dublin City Council, Cohousing Alliance CLG currently has they have supported us, and they quality, energy 2000 people on its waiting list in Dublin provided land in Poppintree in Ballymun alone. No wonder that its CEO was for us in December 2015 for our inaugural efficient homes at moved to declare recently that the lack project where 49 houses were completed of affordable homes in the capital was at and handed over to residents. an affordable price “epidemic level.” “As I say, while Dublin City Council Certainly, while Brennan penchant have supported other local authorities and to ensure its for thinking outside the box has around the country are now beginning to delivered a winning formula, the fact come on board too which is very positive.” co-operative model remains that the housing crisis continues But what of the aforementioned to represent one of the most challenging “certain eligibility criteria”? for affordable and intractable problems facing Irish “There has to be an eligibility policy makers and remains a conspicuous criterion,” Brennan declares. “Seventy per housing can be carbuncle on the country’s landscape. cent of the people have to be from the local Pointedly, Brennan acknowledges that area. That’s part of the agreement with the replicated and while Ó Cualann Cohousing Alliance local authority and there are income limits CLG has been a success story in striving which dictates that a single applicant scaled across the to help alleviate the housing crisis in or applicants could not earn more than Ireland, the organisation doesn’t possess €59,000 in the previous tax year as an country.” a silver bullet. individual or €79,000 as a couple to apply “Housing bodies like ourselves can for one of our affordable houses. play an important role in helping to alleviate the housing crisis, “As long as people meet the eligibility criteria, and they but we can’t do it on our own,” Brennan points out. However,
the Public Sector Magazine 29 Public Sector Magazine
he has been greatly heartened by a commitment by Permanent one in Cork, Waterford and Kilkenny. TSB to financially support Ó Cualann’s plans to develop 1,800 “We put a big emphasis on community. We are building houses across the country over the next three years. communities and not just houses, and we will have no difficulty “TSB are supporting us, and we are very grateful to them. in achieving greater scale because we have a model that works. We have a community partnership; they’re supporting us to “We are optimistic about the coming year and the projects build our internal capacity so that we can scale the operation. we have planned, and we have a good relationship with the “They’re going to provide a grant of 50,000 euros per new land development agency. They love what we are doing, quarter for the next seven quarters which is terrific.” and we look forward to working with them as well as the With such support, Ó Cualann Cohousing Alliance various local authorities, religious orders and other housing continues to go from strength to strength. Indeed, in 2021, there groups in 2021 and beyond.” is the distinct possibility that Ó Cualann Cohousing Alliance Doubtless a lot of people newly housed by Ó Cualann will be engaged in five different developments: two in Dublin, Cohousing Alliance can feel the love!
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