Finance Minister Announces €1.25 Billion allocated to Social Housing

According to Finance Minister Donohoe, the Land Developmental Agency has identified sites where a potential  3,000 homes could be built. State bodies are working with the government to locate land that can deliver an additional 7,000 units.

Donohoe also pledged an increase allocation of €121 million to the Housing Assistance Payment. This additional €121 million serves as a emergency accommodation. Donohoe reveled a €60 million increase in funding will also go towards emergency accommodations.

Also, landlords will have 100% mortgage relief on loans used to pay for rental properties. This new relief for landlords will be in effect in the next year. This action will help reduce the risk of becoming a landlord.

Homelessness services were also planned to receive an increase of funding of  €30 million. This funding is to help alleviate the burdens of the housing crisis. The total spending on homelessness in 2019 is now boosted to €146 million. Donohoe’s report revealed that housing needs for 25,000 people will be met in 2019 due to the increase in supply of housing stock. The increasing trend in supply of housing has continued into 2019, as this year marks the year which the most housing has been provided this year than any year in the past decade.

Donohoe also promised €310 million to boost an affordable housing fund  and to further assist potential homeowners. This €310 million will be spread across three years. Additional allocation will allow prices of homes to be reduced by about €50,000 of the original cost.

The States changes in spending and policy is beneficial to the Irish housing market. Increase in governmental spending is necessary in solving the housing crisis. The increase in spending will greatly benefit the care of homeless people and help increase the supply of land and development of homes.

Thresholds for affordable housing have now been set at €50,000 for individuals and €75,0000. This is much lower than the current threshold for affordable housing. In the greater Dublin area, social housing for a one bed apartment amounts to €286,300.

Increased government interference in the housing crisis has been much needed. Also, the increase in spending on social housing and homelessness will be greatly beneficial to the entire Republic.

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