Local authorities will today be urged to prioritise the provision of social and affordable housing instead of taking financial compensation from developers.
Des Geraghty, chairman of the State body responsible for promoting the delivery of affordable homes - the Affordable Homes Partnership - will tell an annual conference of municipal authorities that financial compensation is doing little to meet the needs of couples who cannot afford a new home.
Housing developers have given more than €32 million to local authorities in lieu of providing social or affordable homes. This option has been possible since the Government watered down a provision known as Part V of the Planning Act which stipulated that up to 20 per cent of all developments contain social and affordable housing.
The amount of money handed over by developers has been rising in recent years. Some €830,000 was handed over in 2003, rising to €7.4 million in 2004 and €16.5 million last year.
Mr Geraghty said: "There are countless first-time buyers and young workers who are interested in buying a home, not so much as a financial investment or to trade up, but because they genuinely want to have a home near where they work.
"Our projections for housing need are out of line with population growth. No one thought we'd have 88,000 new jobs last year. We now have two million workers. They all need to be housed."
Affordable homes are typically sold at a discount of about 25 per cent on the normal market value. They are open to applicants who register with a local authority and who earn up to €55,000 for a single person or €75,000 for a couple.
Speaking to The Irish Times prior to the conference, Mr Geraghty called on young people interested in trying to get an affordable house to register with local authorities.
"It's important we know the full level of demand for affordable homes. If developers and builders were to know the full level of demand, I think it would encourage them further to focus on this segment of the market.
"It would also encourage more lenders and others to develop special mortgages for this sector. In other countries the affordable option is a major source of activity, and I believe it will be the segment that will sustain the Irish construction industry through the coming years."
He will also urge local authorities to streamline the process for applicants for affordable homes.
"If a couple want to apply in a county that has a county council and three town councils, an application must be made in each case. We've worked with the authorities in the Dublin area to achieve a common application form and one fee rather than four application forms and four fees in the four Dublin local authorities. I would urge all the local authorities to work together to have one common application."
The partnership has just published a guide on eligibility for affordable homes. It is available from local authorities or on the internet at www.affordablehome.ie