The Government’s capital expenditure programme on housing is likely to significantly undershoot its target this year, according to data obtained from the Department of Housing.
Under its Housing for All strategy, launched last year, the Government pledged to spend €20 billion on social and affordable housing over the next five years, including €4 billion in both 2022 and 2023.
However, figures provided by Minister for Housing Darragh O’Brien, in response to a parliamentary question from Sinn Féin’s Eoin Ó Broin, point to a capital spend of just €1.2 billion for the nine months to the end of September. This includes €568 million on direct delivery programmes by local authorities and approved housing bodies (AHBs).
The capital funding provided to local authorities under the two main AHB social housing delivery programmes – the Capital Advance and Leasing Facility (CALF) scheme and the Capital Assistance Scheme (CAS) – came to €59.66 million and €92.25 million respectively.
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AHB borrowing from the Housing Finance Agency (HFA) amounted to €426 million while capital expenditure incurred by the Land Development Agency (LDA) was just €12 million.
“It is important to note that such expenditure gathers pace throughout the year and a significant part of it tends to be typically weighted towards the year-end,” a Department of Housing spokesman said.
“There is a very strong pipeline of housing under construction, with a significant number of housing projects to be completed in the final quarter of this year.
“This level of activity will see a significant increase in capital expenditure on housing programmes during quarter four of this year.”
They are going to struggle to get anywhere close to €4 billion. And it’s not simply a question of rolling the underspend into the next year
He noted that the Government’s Housing for All plan commits to an average investment in housing in excess of €4 billion to be made annually from 2022 to 2026.
This funding is through an overall combination of €12 billion in direct exchequer funding, €3.5 billion in funding through the LDA and €5 billion funding through the HFA, he said.
Budget 2022 allocated capital housing funding of more than €4 billion, which includes €2.6 billion exchequer spending and €1.5 billion spending by the LDA and HFA.
Mr Ó Broin said the figures provided to him indicated the department would not hit its targets for this year.
“They are going to struggle to get anywhere close to €4 billion,” he said. “And it’s not simply a question of rolling the underspend into the next year.”
Mr Ó Broin noted that the same spending logjam had hampered the Government’s previous housing strategy.
Total Government spending on housing last year, which coincided with the last year of the Government’s previous housing strategy, amounted €2.4 billion.
Minister O’Brien said recently it would be “challenging” to hit the Government’s target of delivering 4,100 affordable and cost-rental homes by the end of the year.
While noting that several hurdles were frustrating reaching the target, he said he was confident that delivery target for 2022 of 24,600 homes of all kinds, including private and social housing, would be reached.
