Delay in housing scheme not just the fault of the banks

Ireland’s leading housing association contends that the delay in the new ‘Long Term Leasing Scheme’ proposed by the Department of the Environment, Heritage and Local Government is not merely the fault of the banks. According to Respond! Housing Association, the refusal by the Department to alter some of the key components of the scheme is the main reason why it is still not operational. After months of negotiations, the housing association claims it is frustrated by the refusal of the Department to modify the terms of the scheme in order to take account of the huge financial risk charities are being asked to undertake.

According to Respond! spokesperson Aoife Walsh, the current economic climate is having an enormous effect on social housing at a time of greatest need.

“The provision of social housing has changed dramatically in the past 2 years because of the recession and lack of funding from the Department of the Environment. Respond! has experienced a radical reduction in housing output of 92% per annum. We are keen to utilise the ‘Long Term Leasing Scheme’ being proposed by the Minister in order to ease Local Authority housing waiting lists which are now estimated to be 80,000 families. Unfortunately as it currently stands, we believe the Department’s ‘Long Term Leasing Scheme’ is simply not feasible for housing associations as it places too much financial risk on charities like Respond! who would have to borrow millions of euros.”

Respond! believes that there is an onus on the Department to roll it out as soon as possible. Provided changes are made to the scheme, it could facilitate housing associations to purchase some of the hundreds of thousands empty houses throughout the country. This would help to reduce waiting lists nationally which have increased by more than 80% since 2005.

“Respond! has researched many of the so-called ghost estates, some of which are suitable for social housing. We are very keen to purchase many of these houses but we need co-operation from the Department to make this happen. Currently Respond! is considering acquiring some 500 vacant properties throughout Ireland. It is in everyone’s interests to reduce the number of empty houses; particularly those families who currently don’t have a place to call home” concluded Walsh.