ANY attempt to scrap or reduce the requirement of developers to contribute to social and affordable housing will be met with stiff opposition the Government was warned last week.
The measure is being considered as part of new proposals aimed at boosting the construction sector and significantly increasing the number of family homes built by 2016.
Just 8,000 homes were built last year and it’s hoped to triple this over the next two years to 25,000, and create 60,000 construction jobs in the process.
Under current legislation developers are required to build 20 per cent social or affordable housing on any development greater than five houses. The measure was introduced to ease the housing burden on local authorities and encourage socially mixed developments. However, the socially mixed requirement could be circumnavigated through financial or land contributions to local authorities.
It’s believed that developers are sitting on land and the requirement, known as Part V, is one of the reasons why.
Last week housing association, Respond, said it viewed any plans to abolish or reduce the Part V requirement as
“a massive step backwards
? and warned that it could lead to
“ghettoised
? housing estates.
The association says there’s no reason to believe that suspension of Part V would be a stimulus to the building industry and points out that it would remove the present certainty that up to 20 per cent of a completed estate could have a buyer.
Chief Operations Officer with Respond, Ned Brennan, said scrapping Part V would hit many families seeking housing in the current market where demand is beginning to increase.
“The insufficiency of good quality social housing, private rental or affordable housing puts pressures on households to enter the private market when this may not be the optimum decision for them,
? he said.
“Part V captures the obligation within new residential development for the provision of social housing in the community, which is essential.
“Changes should not be to dilute or weaken this measure, and the opportunity should be taken to strengthen the part V provision.
?
Respond believes Part V is essential to ensure the delivery of
“well balanced, integrated communities
? and to help avoid the mistakes of previous generations in creating
“stigmatised and ghettoised housing for lower income families.
?
Local TD, Dessie Ellis (SF) also condemned proposals to remove social responsibility clauses from developers describing them as a
“sham solution to a very real crisis
?.
“These requirements in Part V are not
‘punitive’ as reported,
? he added.
“They ensure that a very modest amount of private housing is set aside for those on lower incomes in order to fight spiralling housing need.
“There is no evidence that these clauses are stopping developers from building homes.
“This would seem to have much more to do with low selling prices, high rent prices and a large number of empty homes across the State.
?
The Sinn Fein housing spokesperson also called on the Government to start building local authority housing and tackle artificially high rents, which he blamed on subsidation of the private market.