Leo Varadkar’s announcement that the National Asset Management Agency could be retooled to drive housing supply is likely to be one of his administration’s signature policies, as it attempts to tackle its biggest domestic policy challenge.
The Dáil returns next week and housing is certain to be the dominant political topic of the winter months, with private members’ motions already in the offing as the Opposition seeks to press the Government on a weak spot.
In giving a glimpse of one of his major policies, Varadkar has to some extent seen Fianna Fáil off at the pass on at least one front. Barry Cowen, the party’s housing spokesman, has consistently called for Nama’s remit to widened and his view has now been taken up by the Government.
While details on the plan, worked on by the Taoiseach, Minister for Finance Paschal Donohoe and Minister for Housing Eoghan Murphy, are still a bit sketchy, some pointers have emerged.
According to sources, the key change in Nama’s remit would be that it would fund developers other than its own debtors, who it funds at the present time.
It is also understood it would develop its own land, but would not be involved in direct building in the manner of the former National Building Agency which was responsible for developing Ballymun and, less controversially, areas of Ringsend and Dublin’s south inner city.
Funding developers
“The idea is that Nama would fund developers, other than its own debtors who it funds now, so that should help get them moving,” said a Government source.
“It would also develop its own lands. It will be able to pay off its senior debt in the next few months so it has money, land and skills.”
It is likely to contract out the actual building of homes to external companies.
Part of its remit will be to raise finance, and there is also some talk of it having a greater role in in planning issues and working with developers. It will “bring Nama’s experience and expertise to bear in the public good”, said another source. “They key thing is that we have a very strong State lever now to drive delivery.”
While local authorities would remain focused on social housing, it is understood the retooled Nama would work towards a greater supply of affordable homes.
The major focus of efforts from Varadkar, Donohoe and Murphy is expected to be on affordable homes, with “affordable” defined in a Department of Housing report this week as prices between €240,000 and €320,000.
“Everything we are looking at outside social housing has a focus on affordability,” a source added.
Some changes to Nama are expected to be made quickly, and primary legislation may be needed, but it is acknowledged that the new Nama will not be able to “fix things in the morning”.
While the housing crisis is undoubtedly an immediate problem, a retooled Nama is likely to be offered as a medium-term solution to a problem that everyone in politics accepts will not be solved for years.