Malcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

Amendment No. 909 seeks to insert the following into section 219:

(12) A housing strategy shall provide that as a general policy at least 50 per cent of any new apartment developments shall be reserved for the provision of housing for purchase by owner-occupiers.

(13) Subsection 12 shall not operate to restrict any person (including a local authority) at its election from providing up to 100% of housing in any development of the types which paragraphs (i) to (iii) of subsection (10) apply.

(14) Subsection 12 does not apply to a development consisting of student purpose accommodation.

The purpose of a housing strategy is to ensure adequate provision for the housing of the existing and future population of the area of the development plan. In preparing the housing strategy, the local authority shall take into account the need to ensure a mixture of housing types and sizes meets the requirements of households in the area. There is no evidence that potential owner-occupiers require 50% of all apartment units in all areas. This would present viability issues in the development of apartments. The Government remains cognisant of the significant viability challenges around apartment construction. To this end, apartments were not included in the suite of measures introduced by the Government in May 2021 to disincentivise and prohibit the bulk buying of certain properties.

Instead, Government has provided a series of supports, most notably the Croí Cónaithe cities scheme, to bridge the viability gap and allow the development of apartments for more owner-occupiers. Institutional investors comprise a relatively small proportion of residential properties purchased annually but institutional investment is still an important part of the housing market. Without it, activity in the housing market would be reduced and the pressure already facing renters and prospective homeowners would increase. For these reasons, I cannot accept the amendment.