green party housing & homelessness policy...housing policy and development for housing is about...

Green Party

Housing &

Homelessness

Policy

December 2015

Housing & Homelessness Policy November, 2015

Table of Contents

SUMMARY & KEY POINTS ..................................................................................................... 1

INTRODUCTION ..................................................................................................................... 3

PRINCIPLES ...................................................................................................................... 3

BACKGROUND .................................................................................................................. 5

THE CURRENT CRISIS .......................................................................................................... 6

RENT SUPPLEMENTS ........................................................................................................ 6

The Calculation of Rent Supplement ......................................................................... 6

Flexibility of Rent Supplements.................................................................................. 7

Deposits & Rent-in-Advance ...................................................................................... 8

The Social Stigma of Rent Supplement Tenants ....................................................... 8

REDUCING THE HOUSING LIST ........................................................................................... 8

MORTGAGES IN ARREARS ................................................................................................. 9

ACCIDENTAL LANDLORDS .................................................................................................. 9

Buy to Let Investors ................................................................................................. 10

TOWARDS A SUSTAINABLE HOUSING SECTOR ...................................................................... 11

HOUSING AFFORDABILITY ................................................................................................ 11

Access to Credit ....................................................................................................... 12

INCREASING HOUSING SUPPLY ........................................................................................ 12

Increasing Investment .............................................................................................. 12

Increasing the Supply of Social Housing ................................................................. 13

ACTIVE LAND MANAGEMENT ............................................................................................ 17

SUSTAINABLE PLANNING ................................................................................................. 18

SUSTAINABLE HOMEOWNERSHIP ..................................................................................... 20

SUSTAINABLE PRIVATE RENTAL ....................................................................................... 21

SUSTAINABLE CONSTRUCTION ......................................................................................... 25

ENSURE COMMUNITY PARTICIPATION IN HOUSING DECISIONS ............................................ 26

Housing & Homelessness Policy November, 2015

HOUSING RIGHTS ........................................................................................................... 26

CREATING EMPLOYMENT AS PART OF INCENTIVISING SUPPLY ............................................. 26

CHRONIC HOMELESSNESS .............................................................................................. 28

Prevention ................................................................................................................ 28

Children & Young People......................................................................................... 28

The Travelling Community ....................................................................................... 29

The Migrant Community ........................................................................................... 29

Health....................................................................................................................... 29

Substance Addiction ................................................................................................ 30

Prison ....................................................................................................................... 30

Families.................................................................................................................... 32

Employment ............................................................................................................. 32

Government Agencies.............................................................................................. 32

Current Social Housing Tenants .............................................................................. 33

Copyright 2016 Green Party / Comhaontas Glas, 16/17 Suffolk Street, D2, Ireland.

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Summary & Key Points

Ireland’s housing landscape has changed considerably over the last number of years. In order to avoid the boom and bust mistakes of the past and capitalise on existing State resources, the Green Party believes in a fundamental rethinking of housing provision in Ireland; one that focuses on giving everyone the opportunity of living in a good home at a reasonable cost, in a stimulating, secure and sustainable environment.

We see housing as a social right, interdependent with good planning, transport, infrastructural development and land management. In particular, we believe housing policy should promote good outcomes for children, young people and those most vulnerable in society. Given Ireland’s recent experience of fluctuating property prices and availability, we believe it is important that Ireland adopts short-term, medium-term and long-term measures that address our immediate needs and ultimately move our housing system towards a more sustainable model.

The Green Party supports a housing sector that provides affordable housing for all. We see this as being a combination of private rental with security of tenure, social housing founded on a cost-rental model and homeownership at a cost equal to no more than 30% of their net income unless they freely choose otherwise. We also believe that a mortgage should be affordable and it should not be for longer than 25 years.

Given the current crisis in housing, the Green Party is in favour of the following interim measures to help stabilise the sector in the short-term.

The removal of sale as a reason for ending a lease.

Better resourcing of the PTRB is required to allow for swift resolution of disputes between landlords and tenants.

Rent Supplement should be paid in advance and deposits and rent-in-advance should be available to all rent supplement tenants.

A housing trust scheme to acquire encumbered buy-to-let properties for social housing, through purchase or lease.

In addition to the crisis management actions listed above, the Green Party believes that the state must revert to playing a more active role in the housing sector in Ireland. Only by exerting its influence through the provision of social housing and land management can it hope to keep the housing sector stable in the long term. The Green Party also believes that public policy should focus on housing for occupation, limiting the ability to use housing as a speculative asset. Therefore, the Green Party advocates that

The state needs to take a more active role in the delivery of housing and for that reason never dispose of public land zoned for housing, unless doing so allows it to buy more appropriate land.

Replace the unfair Local Property Tax with a site value tax charged on the value of all non-agricultural land. This tax is charged on the site, rather than any improvements on it, and encourages the efficient use of land and redevelopment of brown field sites.


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A levy is applied to all vacant properties that could be utilised as housing.

A referendum on housing and property rights should be held

A stable, affordable private rental sector is key to removing the volatility from house prices and that this is predicated, in part, on rent certainty and indefinite leases.

We believe that a stable private rental sector requires a strengthening of the PRTB dispute resolution section in addressing issues concerning both tenants and landlords.

We also believe that a stable private rental sector requires fair treatment under the tax system for landlords to make lettings viable and for tenants to make rents affordable.

The state should implement a cost-rental model on all social housing, which would be delivered by a newly formed National Housing Trust – linked to local authorities – that would be outside the general government sector and provide a combination of affordable and social housing, either directly or via community land trusts or housing associations. The institution should ideally incorporate the capabilities developed in the Housing Agency and NAMA and could be an amalgam of the two. It would also incorporate existing expertise in the Department of Environment, Heritage and Local Government, the Local Authorities and in the Housing Associations and Co-operatives.

The Green Party recognises the success of the Housing First strategy in other jurisdictions and sees it as fundamental to eradication of homelessness in Ireland. There is a clear message from the pathways biographies that there needs to be more early intervention and attention to the structural causes and individual risk factors that lead to homelessness. We need to better resource flexible preventative services in our communities and safe shelters to help families move towards stability. We also support the following:

The Aftercare Bill, which guarantees a right to an aftercare assessment on turning 18 and leaving care, should be fully implemented and the resulting services fully resourced.

Habital Residence Condition (HRC decisions) should be published and where an appeal for residency status is pending, homeless migrants should, at a minimum, continue to have access to temporary emergency accommodation.

Medical cards should be issued based on an individual’s PPS number and not on the basis of a permanent residential address.

Should a household have to reapply for rent supplement within a given period, they should not have to go through the full approval process again and those identified as having a housing need by a local authority should be pre-approved for rent supplement. Similarly, all housing support payments should be tapered off as income levels increase and not operate on a cut-off basis.

Local Authorities should be obliged to offer tenancy sustainment supports to tenants who had received a warning before resorting to legal action.


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Introduction

Housing policy and development for housing is about much more than investment and a return on investment, property deals and speculation. The Green Party believes that housing policy should make the link between the built environment and people’s well-being. We want to build neighbourhoods that are people-centred and that include easy access to green spaces and community facilities. We want to sustain a cultural life as well as a business environment. We want people to feel they belong; that they have a sense of ownership and a stake in their communities. We want high-quality landscape design and shared spaces. We value aesthetics and we want to bring benefit to our communities by integrating positive plant and animal wildlife, building places for them as fellow inhabitants of our neighbourhoods. The Green Party is also committed to the achievement of zero carbon buildings and using smart technology and materials in the building industry to drive sustainability in construction.

The issues of housing and homelessness are in inextricably linked. Traditionally homelessness in Ireland was a symptom of a disordered society and those experiencing it were most likely to have experienced physical or sexual abuse in the home, drug or alcohol addiction and mental health issues. Individuals finding themselves homeless for these reasons may experience homelessness for a short period of time while others may remain homeless for decades. They may also be hidden, with people living short to medium-term on the couches or in the spare room of friends and family, while some are very public as with ‘sleeping rough’. This profile of homelessness is complex and takes time and commitment to unravel as ‘most theoretical and practice viewpoints agree that the causation of homelessness is complex, with no single ‘trigger’ being either ‘necessary’ or ‘sufficient’ for it to occur’1.

In recent times we’ve started to experience a new form of homelessness, one that is wholly and exclusively down to economic circumstances. The Green Party believes that we need to develop strategies and policies that deal with both forms of homelessness concurrently, recognizing that the causes and therefore needs of each group may be very distinct. That said, we believe that all government policies needs to address homelessness on multiple fronts by

Preventing homelessness

Provide rapid response for those that are out of home

Help those at risk of homelessness move towards stable housing for the long-term

Principles

Affordable: Everyone has the right to a secure and affordable home.

Access to resources: Homes should be in locations that facilitate relatively easy access to employment, health-care services, schools, child-care centers and other social facilities.

1 https://www.focusireland.ie/about-homelessness/understanding-homelessness/causes (accessed 20th Sept 2015)

https://www.focusireland.ie/about-homelessness/understanding-homelessness/causes


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Inclusive: Communities should reflect social demographic of society. Individual should be able to move to more appropriate housing, within their locality, as their needs change. This requires a diverse range of housing types within a community.

Accessible: Homes should be accessible to those entitled to it. Priority should be given to disadvantaged groups such as the elderly, children, the physically disabled, the terminally ill, persons with persistent medical problems and victims of natural disasters.

Affordable services: Homes should have affordable, sustainable access to natural and common resources including safe drinking water, energy, broadband, sanitation, refuse disposal, site drainage and emergency services.

Habitable: Homes should be habitable and environmentally sustainable in terms of providing people with adequate space, independence and protection from the elements.

Sustainable Planning: Planning should be done in a sustainable way with priority given to proper community services and infrastructure in a way that allows people access their right to community participation.

Community participation: Everyone has the right to participate in housing-related decision-making at national and community levels.

Diversity: Planning and construction should facilitate the expression of cultural identity and diversity of housing.

Security: The provision of good quality temporary, transitional and permanent accommodation for all those not in a position to provide their own.

Caring Services: We believe that the state needs to provide services that:

- are people-centered

- treat individuals with respect and dignity

- are transparent and subject to review and appeal

- are efficient and effective

- are flexible and tailored to the individual wherever possible

Independence: The Green Party believes in services that help individuals at risk of on-going homelessness need to focus on building the skills required to be independent and autonomous by:

- supporting independent living

- educating them of their rights

- providing peer support and mentoring


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Background

In Ireland, over one million households own their own homes, slightly more than half of whom still have a mortgage. The remainder - just under half a million households - live in some form of rented accommodation. The state provides direct housing support for approximately 130,000 people through local authorities, some of which is leased from the private sector. The state also provides rent supplement for approximately 80,000 people who are renting directly from the private sector2. In 2013, 74,000 persons on Rent Supplement cost the State €344m3.

According to the CSO, the number of households grew by 13% between 2006 and 2011, and it has been projected that it will increase by 5% between 2011 and 2016, resulting in some 85,000 additional households in a mid scenario. Recent analysis by the ESRI has estimated that, in coming years, increases in population will result in the formation of at least 20,000 new households each year, each requiring a separate dwelling4. In addition, a number of existing dwellings will disappear through redevelopment or dilapidation. The results suggest an ongoing need for at least 25,000 new dwellings a year over the coming fifteen years5.

2 NESC: Social Housing at the Crossroads, June 2014, pg 2

3 PTRB: Rent Stability in the Private Rented Sector, Sept 2014, pg iv

4 Housing Agency: National Statement of Housing Supply and Demand, July 2015, pg 27

5 Construction 2020, May 2014, pg 10


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The Current Crisis

The State’s exposure to this housing crisis is now evident in several ways: the number of mortgages in distress, long waiting lists for housing, rising homelessness, and rapidly rising rents, particularly in Dublin. The Green Party believes that we need to solve this crisis in a sustainable manner that will end the cyclical boom-bust dynamic that unfortunately seems to be integral to housing in Ireland.

Well before the crisis and current logjam, Ireland’s system of land allocation and housing supply was dysfunctional. Casey argued that, despite an apparently adequate supply, the market for building-land worked poorly in Dublin. He suggests three reasons for this. Firstly, local authorities withdrew from intervention in the land market. In the 1970s, they owned around 30 per cent of zoned building land and sold land during upturns and bought it during downturns. But in June 2006, only 9 per cent of zoned residential land was owned by local authorities. Secondly, land developers filled the gap left by local authorities, and this shifted market power from builders to developers. Thirdly, ownership of large amounts of building land in some areas was very concentrated, and these landowners cooperated rather than competed, contributing to poor land market performance6.

Households in the private rental sector have fared particularly badly over recent years. The long-run nominal annual growth in rents of 5 per cent may seem high, but is considerably lower than the rate of inflation over this period: from 1947 to 2013, rents fell by around 40 per cent in real terms7. However, in the three years since the end of 2011 we have seen a very sharp increase, with rents in Dublin up by 21 per cent, and by 8 percent nationally (PRTB, 2014 cited in NESC: Pathways to Secure Occupancy and Affordable Supply, 2014).

We believe that resolving the current housing crisis is primarily about increasing supply of the right type of accommodation at the right price in the right areas. We believe that a key component of this supply must be a sustainable model for social housing, otherwise we will be sowing the seeds for future social inequality and boom-bust cycles as happened after the 1980s8. We also believe that we need a twin-track approach to resolving the problem of homelessness; firstly we need to take immediate steps to make the existing system fairer, more efficient and more responsive, and secondly we need to work towards replacing the current system with a housing system that is accessible, affordable and sustainable.

Rent Supplements

The Calculation of Rent Supplement

In 2011, the Department decided that households on Rent Supplement (RS) should be confined to cheapest 40% of all rented accommodation because households on RS accounted for 40% of all rented properties. In the 2013 review, the Department has narrowed this further so that RS households should only be able to rent the cheapest 35% of available properties, on the basis that RS now accounted for 30% of properties. For this policy to work effectively RS households would have to account for the overwhelming number of the households in these cheaper units (85%). The reality is that families on RS are competing for these cheaper homes with low-income working households and with students who also want inexpensive accommodation.

6 Casey, J. (2007), 'Second Vote of Thanks', Journal of the Statistical and Social Inquiry Society of Ireland, XXXVI: 121–125.

7 NESC: Ireland’s Rental Sector, May 2015, pg 22

8 NESC: Housing Supply & Land, July 2015, pg 14


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The Green Party recognises the success of the Tenancy Protection Service (TPS), operated by Threshold, which affords an increased payment of rent supplement above the relevant maximum rental limit to individuals at risk of becoming homeless. This service, which only currently operates in Dublin and Cork, has succeeded in helping 2,808 people (including 1,625 children) in its first year at a fraction of the cost of emergency accommodation9. We think it’s unfortunate that those of risk of homelessness require the services of an intermediate in order to gain an increase in rent allowance from the Department of Social Protection. We advise a review of the internal rent supplement review process within the DSP to determine why an intermediary is required. In the interim we advocate that this service is rolled out on a nationwide basis and that it is extended to include households who are not private renters, but are at risk of homelessness due to house repossessions. We would also allow tenants to make applications in advance of rent increases and not force them to wait until the month the rent increase is taking place.

Flexibility of Rent Supplements

The Department’s 2015 report reviewing rent supplement limits suggests that increasing limits would have a number of negative potential impacts. Among these is the suggestion that an increase in rent supplement limits would give an impetus to landlords to renegotiate rents upwards. It also argues that it might drive rent price inflation in the wider market, particularly for low-income households that are competing for similar properties. It argues that the impact on new supply may be marginal at best, given the acute shortage of all rental accommodation. While this may be true to some extent, we believe that greater flexibility over rent supplements is necessary in the current crisis, until our proposals in the section 'Towards a Sustainable Housing Sector' for increasing supply and making private renting more sustainable can be achieved.

The Green Party is not of the view that we should be heavily dependent on the private rental sector when it comes to housing those not in a position to afford to pay for their own accommodation costs. We believe that the state should take a much more proactive role in providing housing for such households. Should rent supplements to the private sector exist in the future, then we support Focus Ireland’s view that the maximum rental limit should be set at the modal average of rents in any particular area, and it should be reviewed every 6 months. Also, the rent supplement rates for single people in urban areas should be increased to marginally below the rate for couples to reflect the fact that, with the removal of bed-sit accommodation from the market, singles and couples both require 1 bed accommodation. We also believe that rent limits should be set in a more transparent manner, through an independent process, and should better reflect both actual market rents and urban and rural variations. In areas where there are significant fluctuations, this could result in savings to the State. We also propose a restructuring of the Rent Supplement scheme to bring it in line with the

Residential Tenancies Act 2004, which currently fails to measure up to10. As recommended in Thresholds Report on the TPS advocate

For the payment of rent supplement in advance and not in arrears

The introduction of a pre-approval mechanism for RS claimants who have been assessed by the relevant local authority as having a housing need;

9 Threshold, Dublin Tenancy Protection Service: One Year Preventing Homelessness, Sept 2015, pg 2

10Threshold, Dublin Tenancy Protection Service: One Year Preventing Homelessness, Sept 2015, pg 22


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The removal of the requirement that a claimant furnish a tenancy/lease agreement as part of the applications process;

To ensure that RS continues to be paid while an appeal is pending

A review of the documentation requirements for RS and provide for direct submission of confidential documents by landlords to the Department of Social Protection representatives

That RS claimants are given at least 28 days’ notice of the suspension or termination of RS payments

Deposits & Rent-in-Advance

It is frequently the case that relatively small amounts of financial assistance can allow a person in Emergency Homeless Accommodation to secure sustainable private rented accommodation. The assistance may be access to a deposit, rent in advance or a slightly higher rent level required to access accommodation near to social connections and supports. Such small payments can result in substantial savings in expensive Emergency Accommodation. But since the costs accrue to the Department of Social Protection and the savings accrue to the Local Authority, it can be difficult for public servants to justify such discretionary payments. By moving the discretion on these issues to within the Local Authority, flexibility to make informed decisions that are in the interest of the person who is homeless and of the taxpayer should be facilitated.

Similarly, access to a deposit is often a problem for people in receipt of rent supplement. The issue of advancing a month’s rent needs to be formalised rather than leaving it in its current discretionary form. Few landlords will accept a tenant without some form of rent in advance being paid, so doing this would give those in receipt of Rent Supplement greater surety in negotiations with landlords and is more likely to result in them being homed successfully11. Also, if a renter loses their deposit or part-of, regardless of the reason, it is not replaced or topped-up, which can leave them in a desperate situation. We advocate that the replacement or topping up of deposits should be allowed if it is believed that it will help prevent an individual from becoming homeless.

The Social Stigma of Rent Supplement Tenants

A recent PTRB survey report cited some landlords will not rent to social housing tenants or individuals in receipt of rent supplement recipients12. Rent supplement is an important element of the state’s support to those unable to fully meet their housing needs. Allowing landlords to refuse rent supplement without any other basis for refusal of a tenancy completely undermines this state support. As such, amendments should be made to equality legislation to prevent the practice of tenants being rejected solely on the basis of receiving rent supplement.

Reducing the Housing List

Increasing the supply of appropriate housing is key to reducing the housing list but often people are listed on the housing list, not because they are homeless but, because they are in accommodation that is unsuitable for their needs. We propose to create a website that would facilitate the transfer of social housing between tenants. The transfer will be ultimately handled by the local housing

11

FT Houghton and C Hickey, ‘Caught in a Trap’, Focus Ireland, 2001, pg 37 12

Private Rented Sector Survey Findings: Tenants, Landlords & Estate Agents for the PTRB, Oct 2015, pg 47


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department, but such a move will help empower social housing tenants in solving their own housing needs.

Mortgages in Arrears

It is important that sustainable long-term solutions are developed for those who bought homes to live in during the boom and due to circumstances beyond their control are unable to make their monthly mortgage payments.

Under the national mortgage-to-rent scheme, people who are having trouble paying their mortgage to a private lender can switch from owning their home to renting their home as social tenants of a housing association, which buys the home from the lender. The proceeds from the sale of the home to the housing association go towards the mortgage debt and the homeowner must come to an arrangement with their lender for the remaining balance that is owed, if any. If the homeowner’s financial situation improves, they will have an option to buy your home back from the housing association after 5 years. Unfortunately, the number of homeowners who successfully availed of this scheme is very small and anecdotal evidence suggests that banks are not engaging with the scheme because they feel it is too cumbersome and there had been difficulty agreeing on a value for homes13. The Green Party supports

a swift review of the initiative and implementation of any recommendations on how to improve its effectiveness.

the transferring of any residual debt owed on family homes by households qualifying for this scheme to the state. This debt would then be subject to a low interest rate.

the extension of this scheme to Community Land Trusts

Accidental Landlords

It is an unavoidable truth that approximately 36% of landlords in Ireland today are ‘accidental’ landlords14, of which a sizeable portion - approximately 31.3 per cent- wish to cease as a landlord as soon as possible15. Of the 70% of landlords – accidental or otherwise – 71% report that the rent paid to them doesn’t cover the cost of the debt on the property16. Sixty six per cent of estate agents believed that landlords will be looking to sell their rental properties when prices rise17. We need to manage the exodus of these ‘accidental’ landlords from the private rental market, either by providing alternative social housing or encourage these landlords to sell their properties to the state. Doing this will give the state access to more housing that it can rent out at affordable levels and reduce its exposure to market rent increases.

13

http://www.independent.ie/business/personal-finance/property-mortgages/coalitions-mortgagetorent-scheme-a-miserable-failure-

30216927.html (accessed 20 Sept 2015) 14

Private Rented Sector Survey Findings: Tenants, Landlords & Estate Agents for the PTRB, 2015, pg 42 15


Private Rented Sector Survey Findings: Tenants, Landlords & Estate Agents for the PTRB, Oct 2015, pg 44 17

Private Rented Sector Survey Findings: Tenants, Landlords & Estate Agents for the PTRB, Oct 2015, pg 60

http://www.housing.ie/Housing-Information/Mortgage-to-Rent-Scheme

http://www.independent.ie/business/personal-finance/property-mortgages/coalitions-mortgagetorent-scheme-a-miserable-failure-30216927.html

http://www.independent.ie/business/personal-finance/property-mortgages/coalitions-mortgagetorent-scheme-a-miserable-failure-30216927.html


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Buy to Let Investors

The number of buy to let mortgages increased from 17 per cent in 2003 to 26 per cent in 200618. At the end of December 2013, there were over 144,000 buy-to-let mortgages, which represent 45 per cent of all privately rented properties recorded in Census 201119. Out of a total of around 144,000 BTL mortgage accounts, 39,669 were in arrears at the end of June 2014. This figure represents 27.5 per cent of the total BTL mortgage loan accounts or 13 per cent of the total estimated stock of 305,377 units rented from private landlords20. Research shows that 70 per cent of the landlords have an outstanding debt on their property, and for 71 per cent of these, the rent did not cover their debt repayments21. It is undoubtedly the case that most of these are BTL properties bought at the height of the house-price bubble. It has been reported by Sherry Fitzgerald22 that there were more sales than purchases of buy-to-let properties by investors in 2014, indicating a decline in the stock of buy-to-let rental properties.

The Green Party acknowledge that while this is firstly a banking and finance issue, the way in which encumbered buy-to-let mortgages are handled can potentially have an important role in reducing the upward pressure on rents and eviction of low-income or rent supplement tenants. An effective strategy in this regard could result in a saving to the state vis-á-vis the cost of building new social housing23. Currently there are no resolution strategies in place for buy to let (BTL) mortgages, which in many cases is negatively impacting on tenants where properties are in receivership.24 There would seem to be scope for a larger share of encumbered buy-to-let properties to be acquired for social housing, through purchase or lease. In devising a programme to manage the transition of encumbered buy-to-let properties, a relevant factor would be the low cost of long-term government debt25. We also propose the state provides clear guidance for Department of Social Protection representatives to deal with circumstances where receivers are appointed to properties with RS tenants as recommended in Threshold’s report on Tenancy Protection Service (2015, pg 22).

18

Norris, M. & Coates, D. How Housing Killed the Celtic Tiger: Anatomy, Consequences and Lessons of Ireland’s Housing Boom and

Bust, 2000–2009 pg 9. 19

NESC: Homeownership and Rental: What Road is Ireland On, Dec 2014, pg 22 20

PTRB: Rent Stability in the Private Rented Sector, Sept 2014, pg v 21

DKM Economic Consultants (2014), Future of the Private Rented Sector: Final Report, pg 21 22

Sherry FitzGerald (2015), Irish Residential Property Market 23

NESC: Ireland’s Rental Sector Report, May 2015, pg 11 24

PTRB: Rent Stability in the Private Rented Sector, Sept 2014, pg v 25

NESC: Ireland’s Rental Sector Report, May 2015, pg xiii


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Towards a Sustainable Housing Sector

We concur with the view that housing is not simply a commodity that can be left to be traded unfettered on the open market26, and that policy should focus on housing for occupation, limiting the ability to use housing as a speculative asset.27 We also believe that the provision of affordable housing is not a dualist battle between investment and profit on one hand and security of tenure and affordability on the other. It is a balance of the two and it is apparent that those jurisdictions that have strong rent regulations and a strong private rented sector also have an equitable taxation system in place and in some cases generous depreciation allowances, fiscal benefits and subsidies to promote investment28. We do not want to risk a repeat of the late 90s when tax relief for investors was abolished in an effort to slow the rise in house prices. This caused a decrease in supply, rents shot up and the measure was reversed29. That said we do need a clear, simple system with conditional incentives that are tailored to specific situations, not broad-stroked inducements which just stimulate building but not necessarily the right building type in the right areas.

We also believe that private rental sector issues (such as rent certainty and security of tenure) cannot be resolved without also addressing the supply challenge. We also believe the supply challenge cannot be addressed without more direct state influence on housing supply and more active land management30 and will discuss this later on in the policy.

Housing Affordability

Affordability covers a wide variety of issues including housing prices, incomes, creditworthiness, housing quality, housing policies, supply, and individuals’ decisions regarding how much expenditure they wish to devote to housing (Norris, 2014 cited in NESC’s Homeownership & Rental: What Road is Ireland on, 2014). In many countries, affordability is defined as housing costs that consume no more than 30 to 40 per cent of household income31. In Ireland, the Planning and Development Act 2000 defines affordable housing as housing or building land provided for those who need accommodation and who otherwise would have to pay over 35 per cent of their net annual income on mortgage payments for the purchase of a suitable dwelling.

The EBS/DKM data shows that in February 2014, a single first-time buyer on average earnings would pay 38 per cent of their net income on mortgage repayments, at the limit of what is considered to be a cost burden in the international literature (30 per cent of gross income)32. The Green Party believes that all people should be able to live in appropriate and sustainable housing for a cost of no more than 30% of their net income unless they freely choose otherwise. We also believe that a mortgage should be affordable and it should not be for longer than 25 years. For a significant proportion of the population this is becoming very difficult, if not impossible.

26

McKinsey Global Institute: A blueprint for addressing the global affordable housing challenge, Oct 2014, pg 108 27

NESC: Social Housing at the crossroads, June 2014, pg 3 28

PTRB: Rent Stability in the Private Rented Sector, Sept 2014, pg iii 29

http://www.independent.ie/business/commercial-property/the-right-moves-would-rent-controls-work-30964912.html (accessed 20 Sept

2015) 30


McKinsey Global Institute: A blueprint for addressing the global affordable housing challenge, Oct 2014, pg 1 32

EBS DKM Irish Housing Affordability Index, May 2015, pg 8

http://www.independent.ie/business/commercial-property/the-right-moves-would-rent-controls-work-30964912.html


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Access to Credit

The Green Party supports the recently introduced restrictions on mortgages but would also welcome the introduction of a Central Credit Register to assist lenders in ascertaining total borrower indebtedness. We also believe that if a potential borrower can demonstrate a track record of ability to pay rent over a sustained period that this should be taken into account when assessing affordability.

Increasing Housing Supply

Increasing Investment

We believed that investment in housing is required in both the public and private sector to provide a stable rental market. Irish pension funds benefit from generous tax breaks and we would encourage or require them to invest a proportion of their funds for new housing development.

Where it is identified that interest in developing particular sections of land is not forthcoming, we advocate for the parcelling of separate land banks into one contract and inviting tenders on that basis, as this would likely make the contract more attractive to a wider pool of construction companies both at home and abroad33. This has been a distinctive feature of the land market in Germany for several decades. This instrument was initially used for rural land adjustment but was extended in 1940 to built-up land. This can be done on a voluntary basis but there is provision for the use of compulsory measures if voluntary agreement cannot be reached.34

Making Construction More Efficient McKinsey Global Institute highlights the scope to reduce construction costs for affordable housing by improving capital productivity via lean production, adopting value engineering approaches, improving procurement practices and learning from industrial construction techniques. The same report also indicates that improving energy efficiency and reducing the costs of repairing and maintaining buildings can serve to reduce operating expenses and sustain asset values, thus increasing the economic attractiveness of investing in affordable housing provision.

Research by the Housing Supply Task Force has indicated that developers see the planning process as burdensome35. We do not advocate a lessening of the regulatory nature of our planning departments. Instead we would support planners providing more clear direction to developers on how best to bring developments in line with planning regulations.

We support the recent move by Enterprise Ireland to start a Business Information Modelling (BIM) programme and recognise the great efficiencies that BIM has provided on projects in England.’ BIM has been identified as a significant contributor to the saving of £804m in construction costs in 2013/14 recently announced by the Cabinet Office.36

Increasing Investment in Private Rental

We believed that investment in housing is required in both the public and private sector to provide a stable rental market. Irish pension funds benefit from generous tax breaks and we would encourage

33

NESC: Housing Supply & Land, July 2015, pg 17 34

NESC: Housing Supply & Land, July 2015, Appendix 1, pg 39 35

NESC: Housing Supply & Land, July 2015, pg 28 36

NESC: Housing Supply & Land, July 2015,, pg 31 (Digital Built Britain, 2015)


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or require them to invest a proportion of their funds in rental housing as part of their low risk

investment class and corporate social responsibility.

We recognise that Ireland does not have a tradition of developing new housing designed for institutional rental supply and there is a need to devote attention to the specific requirements of this type of new supply if we are to consider it as a channel for affordable private rental.37

We are in favour of the imposition of a new tax levied annually at a progressive rate on the site value of lands suitable for building which currently lie undeveloped.

We believe that a proportion of the uplift in land value created due to the provision of infrastructure in the area by the state should be paid by the land owner to the state on the sale of the land. We also believe that a percentage of the up-lift in land value created through the planning process should be paid to the state on the sale of the land.

Increasing Investment in Student Accommodation The Society of Chartered Surveyors expressed concern about the impact of higher rents on students, which may be adversely affecting the ability of some third-level institutions to attract students38. If 3rd level institutions built residences on their land it would safeguard the attendance of students and would be attractive to students and free up residences in the private rental market for other individuals.

Increasing the Supply of Social Housing

It has been observed over the past century in modern liberal democracies, including Ireland, that the market for owner-occupied and rental accommodation is unlikely, on its own, to meet the housing needs of those on low incomes or with special housing needs. In a period of unprecedented economic growth, prosperity, employment creation and unemployment reduction from 1994 to 2004, those on low incomes and with special needs faced increased, rather than decreased, difficulty in the markets for home ownership and rental accommodation39.

‘Inevitably, when prices are high those at the bottom end of the market will be priced out. When prices are low, supplying those at the bottom end of the market will not be profitable’40.

Even just on a practical level, a recent PTRB survey report cited some landlords will not rent to members of the travelling community, social housing tenants or individuals in receipt of rent supplement41. Also, trends in Ireland’s tenure mix, affordability, demography and economy suggest that one-quarter to one-third of the population will find it increasingly difficult to achieve homeownership and that, in the absence of an effective new social housing strategy; there will be increased polarisation in housing options and conditions42. Additionally, using the private rental sector to meet social housing need exposes the Exchequer to rising market rents.

In 2011 there were approximately 1.7m permanent households in Ireland. Approximately 450,000 of these did not own their own homes. Of these 275,000, or 55 per cent, were in receipt of some form

37


Society of Chartered Surveyors of Ireland (2015), Annual Residential Property Review & Outlook:The 2015 Report, pg 12 39

NESC: Social housing at the Crossroads, June 2014, pg 23 40

Dunne, T, High Developments Land Prices and the Realities of Urban Property Markets, pg 77 41


DECLG, Social Housing Strategy 2020, 2014, p.17


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of state support for housing43. Social housing channels include social housing, financial support and housing associations. There were 106,575 households with support from rent supplement or RAS; this amounts to 35 per cent of all households renting privately44. In the same period, the proportion of the population renting local-authority dwellings has fallen from a high of 18 per cent in 1961 to 9 per cent in 2011.45

Despite the overall fall in number, local authorities still remain the largest single providers of socially rented housing in Ireland, owning approximately 107,000 dwellings. Tenants pay differential rents, which are based on household income. The rents average about 15 per cent of this income, and in 2011 were €59 per week46. The level of rent charged is often not enough to cover maintenance and doesn’t allow for reinvestment in more social housing, and as a result the local-authority social housing stock is dwindling, and so is kept for the very poor.

We need to create institutions capable of achieving a resumption of provision by the local authorities. In order to comply with Eurostat regulations in relation to maximum debt levels for EU member countries, this institution would need to be a public corporation or a quasi corporation with income stream sufficient to fund its own borrowing and sufficient income from rents to pass Eurostat’s market income criterion. In the UK, housing-benefit payments by central government are part of the sales revenue of council housing47, which is acceptable to Eurostat because it considers rent supplements as part of an organisation’s sales revenue; even if these payments are a substantial part of the budget of a social-housing provider, and so they do not lead to it being classified within the government sector.48

We propose the setting up of a housing body or housing trust - linked to local authorities - that would be outside the general government sector and provide a combination of affordable and social housing. The institution should ideally incorporate the capabilities developed in the Housing Agency and NAMA and could be an amalgam of the two. It would also incorporate existing expertise in the Department of Environment, Heritage and Local Government, the Local Authorities and in the Housing Associations and Co-operatives.

Community Land Trusts One institutional arrangement that has been used in the US, Canada and the UK to ensure long-term affordability is a community land trust. A community land trust is a non-profit legal entity that holds land in perpetuity in stewardship for the common good. In terms of housing, the community land trust model has mostly been used to promote a model of affordable homeownership (in which the homeowner leases the land) but has also been used for affordable rental49. This development model replicates that of the Irish ‘improving landlords’ of the 17th to 19th century that has given us the structured variety of Georgian Dublin as well as many fine towns and villages throughout Ireland. The Green Party supports the development of community land trust in Ireland and would advocate for the promotion of them legislatively and financially.

43




CSO: Profile 4, A Roof over our Heads, Aug 2012, pg 59 47



Angotti, T, Community Land Trusts and Low‐Income Multifamily Rental Housing: The Case of Cooper Square, New York City, Working

Paper, July, Cambridge: Lincoln Institute of Land Policy.


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Approved Housing Bodies Another possible vehicle for the provision of low-cost housing in Ireland involves non-profit Approved Housing Bodies (AHB’s). There are around 300 Approved Housing Bodies in operation in Ireland that offer low-cost rental on around 27,000 homes50. Housing associations’ dwellings constitute a small percentage of total social provision and a miniscule share of overall housing. This could be for many reasons including bureaucracy and need to put in their own financing or it could be because housing associations are small players and not capable of delivering on the scale required.51 The Green Party would support investigating the possibility of transferring the management of current social housing stock into the hands of AHBs if it can be established that such organizations are capable of handling such a large portfolio of housing.

Currently AHB’s are able to access low-cost loans via the Housing Finance Agency. Recent reports suggest that some agencies are choosing to avail of commercial loans instead as they are currently cheaper. The Green Party believes that it is important that we investigate whether the state needs to buy out these loans so as to insulate the associations and the state from increases in market interest rates. We also support investigating why finance from the Housing Finance Agency is not attractive for AHB’s and remedies to make it so.

Cost-Rental The Green Party is in favour of imposing a cost-rental model on social housing in Ireland. In Austria, France and Finland, rents in social housing are cost-based and in Austria it is a requirement to balance costs and revenue at the level of the individual development52. Basing rents on the cost of proving accommodation has two positive effects; firstly, it provides the opportunity to pool the rents from older low-cost properties and new higher-cost units, and secondly, when the cost-rental segment reaches a sufficient share of the overall rental sector, it has the potential to moderate market rents53. The Green Party acknowledges that determining ‘sufficient share’ to moderate rents is not a simple matter and so suggest that financial projections are required to determine how big the social housing sector needs to be in order for the cost-rental model to work successfully.

Currently in Ireland social housing tenants pay a differential rents, which are often well below the level of cost-rents. We would advocate the topping up of such tenants’ rent by way of housing benefit from the government. Since local-authority housing stock is largely debt-free, the costs are generally fairly low except where significant refurbishment is needed. Therefore, if the state to transfer local authority housing stock to AHB’s, these organizations could create a sinking fund for new social housing from cost rents paid on low-cost local authority housing stock.

We recognise that this would need to be handled carefully to avoid Ireland breaching EU treaties that disallow state aid to organisations for carrying out specific tasks where this aid distorts competition. Therefore, Ireland would have to offer similar subsidies to profit providers unless it limited the subsidisation of housing construction to that designated for disadvantaged citizens or socially less advantaged groups that would not be supplied by the market without public intervention. In a Dutch case on state aid to housing associations, the Dutch Government and the EU agreed that this aid could be paid, providing that the housing associations rent only to a target group of disadvantaged households. The European Commission has given member states a wide margin in deciding the size

50



NESC: Social housing at the Crossroads, June 2014, pg 36

53 Department of Environment, Community and Local Government, Social Housing Strategy 2020, Nov 2014, pg 48


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of the disadvantaged target group for social housing. In the Dutch case, the target group was set at those with an annual income of €33,000 or less, which covers 43 per cent of the Dutch population. This is a much wider group than the current Irish equivalent, where the lowest-income quartile makes up 52 per cent of local-authority housing tenants. This suggests many opportunities to rent Irish social housing to higher-income groups than those currently occupying it54.

Financing Social Housing There are a number of ways in which governments can financially support the construction of social housing.

Financial Aggregators The Housing Finance Corporation (THFC) in the UK combines the credit needs of the small housing associations and raises the finance to meet these needs as described in Chapter 4. There is potential to develop such a ‘financial aggregator’ in Ireland. In a planned regeneration project involving stock transfer of 2,000 local authority flats in Dublin, Cork and Limerick, it is intended that a financial aggregator would be established and would borrow money from the EIB and lend this on to housing associations. The European Investment Bank (EIB) has the benefit of a triple A credit rating and hence is in a position to raise finance on very attractive terms. If successfully established for this project, an aggregator would then be in a position to finance further projects55.

Loan Guarantees The provision of loan guarantees has become an increasingly used form of public support for social housing. This applies in the Netherlands, France, Finland and some German Länder. In the case of the Netherlands, the public guarantee has never been called upon as the social-housing associations have their own system of guarantees. Access to private funding is increasingly important for social housing providers. Providers in the Netherlands and England are now rated by international rating agencies. Larger UK housing associations are able to issue their housing bonds. The Housing Finance Corporation (THFC) in the UK ‘aggregates’ the credit needs for smaller associations and raises finance to meet these needs. It then lends on this money immediately to housing associations on similar interest and repayment terms. This makes it possible for associations to avail of finance on more attractive terms than would be available from banks.

Discounted Price for Land The provision of land at discounted prices to social housing providers is another important way that social housing is supported.

Favourable Tax Rates Some countries provide favourable treatment in the tax system to those providing social housing. These include reduced VAT rates, reduction or exemption from property tax, and income/corporate tax.

Low Cost Loans Currently, the Housing Finance Agency offers low cost loans to those engaged in social housing. The Green Party supports the continuance of this support as long as it is tied to the provision of cost-rental social housing developments.

54




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In addition, Austria and France use tax incentives to facilitate the flow of savings to social housing. Two-thirds of funds from the Livret savings accounts used in France are loaned to social-housing organisations. The Livret savings accounts have similarities to the savings accounts offered by An Post at present; in both cases the interest received is tax-free and state-guaranteed, although the tax-free An Post accounts are for longer terms than the Livret accounts56.

Active Land Management

Conversations about property tend to conflate two issues, buildings and land. Land is very valuable, and increasingly so in urban locations. Buildings however are depreciating assets that need investment to retain their value. We believe that a sustainable affordable housing strategy can only happen if the government has a key role in the supply of land (Saiz, 2014 cited in NESC Housing Supply and Land Report 2015) and so advocate the state having an active role in the supply of land in Ireland.

Active land management has long been a key policy in the Netherlands. Up until the early 1990s, municipalities established land-development companies to undertake the role of land development. This involved purchasing land from its original owners, subdividing it for different purposes, servicing it and providing infrastructure. Finally, serviced land would be sold to developers, housing associations (for social housing) and owner-occupiers. This process enabled municipalities to ensure that their land development plans were realised. Also it allowed municipalities to recover the costs involved in the necessary public investments through sale of the serviced land plots57.

According to NESC, the State now has considerable land resources that can be used for social housing. This consists of (i) land owned by local authorities; (ii) land owned by the Housing Agency; (iii) land under the control of NAMA; (iv) land owned by other public bodies that might be suitable for social housing. It is important to note that this is a resource that can now be used without adding to the government deficit and, although it must be ensured that the mechanisms by which it can be used will fit with the state aid rules, it would be desirable to identify suitable land for social housing and to make it available at low or nominal cost to social-housing providers. This move ‘effectively replicates and extends the types of policy experiments that are already underway in the social housing sphere (such as Dublin City Council providing sites for development), while also building on earlier initiatives to facilitate planned development, such as the SDZs.58

Following on from an assessment of existing land owned by the State, the Green Party advocates that we engage in a major programme of state acquisition of land and derelict properties as envisaged in the Kenny Report.

We believe that to safeguard this pivotal role in land supply management, the government should never dispose of land zoned for housing in its ownership59 unless it can be shown that a more appropriate land can be purchased with the proceeds from the sale of unsuitable land. The public ownership of land would allow the government to raise equity for more social housing on the back of any uplift in value of its existing developments.

This inevitably means that social-housing tenants would not be afforded the ‘right to buy’. Subsidised homeownership for social housing tenants is often seen as a way of distributing of wealth within

56


NESC: Housing Supply & Land, July 2015, Appendix 1 58


NESC: Ireland’s Rental Sector Report, May 2015, pg xii


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classes, but in the long term it depletes the social resources necessary for addressing acute housing needs, and there is no guarantee that the wealth distributive is permanent. It is estimated that up to a third of council homes sold in England in the mid 1980’s are owned by private landlords, with 40 ex-council homes in one estate in South London being owned by one couple.60 A further downside of the ‘tenant right to buy’ is that land has become highly fragmented in rural villages so that planning for the common good and coherent development is nigh impossible.

The Green Party supports the development of a compulsory public register of all publically and privately-owned land and all options on land. This will allow the state and the public to know who holds strategic land banks in Ireland.

Sustainable Planning

Currently most landlords, 46 per cent, supply a 3 bed house, and 3 bed houses are by far the most demanded property as indicated by 63 per cent of estate agents, with 2 bed Apartments or Penthouses being the next most demanded property type, although this is lower at 20 per cent. 61 Demographic patterns suggest that almost 60 per cent of projected new households in the Dublin area are estimated to consist of one or two persons in the period to 201862. This implies a large need for smaller homes, including apartments, and projections indicate that 1 and 2 person households will account for approximately 55% of housing supply requirements in the years ahead63. We must plan for this change in the demand for various building types. In considering whether to live in an apartment or house, in Ireland, at least, anxiety about the reliability of apartment-management companies can be a real issue that tips people towards a house.64

In many locations outside Dublin, evidence points to a continuing over-supply of housing – with vacancy rates remaining well above what is regarded as normal in a functioning market. Census 2011 revealed an estimated total vacancy rate across the country of 11.5% (excluding holiday homes). A typical rate in a functioning market would be expected to be about 4.5-6%. We recognise that this trend is being repeated the world over and that migration to cities is something that is likely to continue. That said, the Green Party support any initiatives that facilitate people living and working in rural communities in Ireland.

A core vision of the Green Party is the development of communities where families work, shop, socialize and attend school without having to commute long distances. To achieve such a vision we need to utilize land very efficiently, particularly in urban settings. This requires greater density in new housing developments, but also a more efficient utilisation of our current housing stock. Research has shown that homeowners are more likely to occupy family homes both before and after they actually have a need for such a home. This is despite the fact that frequently elderly homeowners often struggle to keep up with maintenance of properties, meaning that refurbishment costs are passed onto the next generation65 and are likely to be higher than if maintenance was ongoing. We need to make the proposition of downsizing attractive to those in a position to do so and provide them with quality, alternative accommodation in the locality for them to move to. We also support the development of a mechanism that helps parents to swap homes with an adult child and their

60

http://www.mirror.co.uk/news/uk-news/right-to-buy-housing-shame-third-ex-council-1743338 61

PTRB: Survey for Final Report 62

http://www.futureanalytics.ie/p_HAhousing.html (accessed 21.09.14) 63

Construction 2020, May 2014, pg 10 64


Kemeny, J. (1995), From Public Housing to the Social Market: Rental Policy Strategies in Comparative Perspective, London:

Routledge, pg 169

http://www.futureanalytics.ie/p_HAhousing.html


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family, and is equitable and fair for any other siblings with a potential inheritance claim on the property.

We are also in favour of extending the successful Extended Living Cities initiative to rental properties. Currently only owner occupiers, who refurbish buildings, are allowed to recover the full refurbishment cost against tax each year over seven years. To comply with EU rules, a cap on the amount of tax relief available was introduced. It has been reported that banks are unwilling to provide mortgages on properties in need of a lot of refurbishment66. This needs to be confirmed and proposals to bring any funding gaps should be filled by the state if the project is found to be viable.

How we plan for, design and carry out urban development has a major impact on the quality of our health, environment and social life. We take inspiration from the Dutch government’s ‘VINEX’ Housing Programme which saw the construction of 455,000 houses between 1995 and 2005. In addition to being an eco-development initiative, it excelled at coordinating different levels of government, and developing partnerships with private developers on the sale of plots, and amongst multi-disciplinary project teams that crossed professional boundaries. Although the idea of Sustainable Communities has been formally legislated for, the Green Party advocates for a more practical application of it.

The Green Party also supports the following:

An awareness campaign about the programme and make sustainable communities a political priority.

Collaborative working with stakeholders to ensure that energy plans are produced for all building areas and the most environmentally-friendly type of energy supply is contractually prescribed, providing that this can be achieved at an additional cost of less than 10%.

Providing garden space and long-term storage space especially in large apartment developments.

Initiatives to facilitate working from home, including facilities in the community to support those working from home and clear guidelines in law for employers and employees in the public and private sector.

Higher densities in terms of housing design, particularly along public transport corridors, diversity in the size of housing and apartment types and the provision of coherent streets, and open spaces with a sense of space.

Allowing all residents in apartment complexes to have a say in the management companies’ activities and introduce a simple, efficient and affordable mechanism for the resolution of disputes involving management committees. This would have to empower residents of apartment complexes and not just owners, which are often not living in the complex.

The implementation of a levy on vacant sites and properties or the offer of financial incentives to retail outlets with good-quality habitable accommodation over it.

66

http://www.independent.ie/business/commercial-property/new-possibilities-open-with-living-city-initiative-30984351.html


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The introduction of the Noise Bill that was drafted by the last Green government in 2009. We believe this an essential component of harmonious urban living.

Sustainable Homeownership

Owner-occupation is now the tenure of the majority of the population in every EU country. The share of the population in owner-occupation in Ireland in 2012 was 70 per cent, the same as the EU-28 average and not that much higher than the EU-15 average (66 per cent). Ireland’s level of owner-occupation (as a share of the population) is now the same as Sweden’s. Some European countries have a substantially lower level of owner-occupation: Germany (53 per cent), Austria (57 per cent) and Denmark (64 per cent). The lowest level of owner-occupation is in Switzerland (44 per cent). However, the direction of change is different, with Ireland experiencing falling rates of owner-occupation, particularly in the 25–34 category67, while several continental European countries see a rising share. Second, many continental countries combine owner-occupation with a more developed and regulated private rental sector than in Ireland, and a larger social housing sector.68

Owner-occupation remains high among Irish nationals, at 77 per cent in 2011 (down from 82 per cent in 2006), but only 26 per cent of other nationalities are owner-occupiers. Instead, private renting is the latter’s predominant form of tenure, at 68 per cent. This might be because homeownership is not high in the urban centres that they tend to inhabit or they might just prefer transient nature of renting69.

Because homeownership tends to be of houses rather than apartments, it is argued by Glaeser that the subsidisation of homeownership encourages low-density development and higher energy consumption (Hoekstra, 2005 cited in NESC Homeownership and Rental 2014). The Green Party believes that one-off housing is an inefficient use of land that makes the economic provision of social services difficult, leads to greater reliance on car travel and makes it difficult to pass infrastructure developments for the public good.

A further issue in the geography of Irish housing developments is the extent to which one-off rural houses are favoured. In the early 2000s, approximately one-third of Irish houses were one-off, but this had reduced to one-quarter in 2011. Altogether, one-sixth of all private dwellings built since 2001 were one-off houses. One-off houses are predominantly located in rural counties, particularly in the west. Sixty per cent of households in County Galway are in one-off houses, 54 per cent in Roscommon and 50 per cent in Mayo70. These houses are often cheaper than those built by a developer, as they are commonly built on land already owned by the household or relatives. There is a strong overlap between the areas where outright ownership is high and where one-off houses predominate.71

Even though purchase prices in Dublin have increased by 21 per cent in the year to April 2014, and are beginning to increase in the rest of the country for the first time since 200772, purchasing is now less expensive than renting, based on a 30-year mortgage, in most parts of the country73. Furthermore, the disposable incomes of those with a mortgage are now further above average and

67




CSO: Profile 4, A Roof over our Heads, Aug 2012pg 34 71


Daft.ie House Price Report, Q2 2014, pg 5 73

NESC: Homeownership and Rental: What Road is Ireland On, Dec 2014, pg 40


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the disposable incomes of those renting are now further below average than they were before 1999–200074. This creates a vicious cycle, particularly for ‘intermediate’ households who can’t afford to save a deposit because of high rents, which they can’t escape because they can’t afford to save for a deposit.

Over the period 1974 to 1994, Irish house prices increased six fold in nominal terms. However, most of this increase was in line with the increase in the Consumer Price Index (CPI) so that in real terms, Irish house prices increased by 9 per cent over this period, a real annual increase of 0.4 per cent. However since the mid-1990s, Irish house prices increased dramatically in both nominal and real terms. In 2013, national house prices were 3.7 times higher than in 1994 in nominal terms and 2.5 times higher in real terms. Over the extended period 1974 to 2013, the average annual growth in national prices in real terms, was 2.5 per cent. When one adds the implicit return from the benefit of occupying one’s house, this represents a considerable real rate of return75. Also, homeowners eventually acquire an asset as they pay down their mortgage.

Despite the presence of well-developed rental alternatives in the Netherlands and Denmark, homeowners there had significantly higher satisfaction than tenants (Elsinga and Hoeskra 2005 cited in NESC Homeownership and Rental Report 2014). The reason for this is unclear and could be linked to lack of financial security in old age.

One of the main factors influencing the high rate of owner-occupation in Ireland—and, through much of the 20th century, the falling share of rental accommodation—has been a range of government incentives aimed almost exclusively at homeowners.76 In contrast to the Irish Government’s support for owner-occupation, there had been little Government support in Ireland for rental accommodation and, over several decades, greatly reduced investment in the construction of social housing.77

The Green Party believes that this inequality between the benefits of home ownership and renting has led to a natural desire in households to be owner-occupiers, sometimes at too high a cost. We recognise that the recently proposed regulations by the Central Bank regarding loan-to-value (LTV) and loan-to-income (LTI) ratios should contribute to stability, although they impose a cost on a particular group of potential house buyers. We recognise that homeownership may not be possible for all sectors of society but ‘ownership’ can be a matter of degree. We support initiatives that seek to redress the imbalance between the benefit of homeownership and private rental.

Sustainable Private Rental

Nationally, about 305,000 households (around 19 percent) are renting from a private landlord, although the percentage of households renting is considerably higher in Galway (40 per cent), Dublin (34 per cent) and Cork (29 per cent)78. Although the PRTB figures for registered tenancies are lower than those in the Census (due to under-registration), they show an increase of 45,000 households renting privately between 2011 and the end of December 201479. This translates to into an increase

74





NESC: Ireland’s Rental Sector, May 2015, pg ix 79

NESC: Ireland’s Rental Sector, May 2015, pg 19


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from 20 per cent in 2006 to 32 per cent in 2011 in Dublin80 and from 19 per cent to 38 per cent in Galway81.

The amount of stock available to rent (i.e. advertised vacancies) has, however, fallen since 2011. DAFT figures show that at the end of 2011, approximately 15,000 properties were available to rent in Dublin, but by February 2015 this had fallen to 5,200. Outside Dublin there were fewer than 550 properties available to rent in total between the four cities of Galway, Cork, Limerick and Waterford on 1 February 2015—the lowest level since 200782.

Factors affecting increase in rental in recent years in Ireland include the following: 83

Inward migration and economic growth that greatly increased the demand for rental accommodation;

Rising property prices, which made investment in rental property an attractive option and pushed the price of homeownership beyond the reach of many;

The explosion of credit availability, which encouraged many to seek capital gains through taking mortgages to purchase buy-to-let properties;

Continued limited supply of social housing, which pushed low-income families to use housing supports in the private rental sector; and

The economic crisis, housing bust and credit freeze from 2008 to 2013

It is increasingly recognised that a well-developed and efficient rental market providing a viable alternative to ownership plays a balancing role by alleviating house price pressures and smoothing housing market dynamics. This is especially the case when it proves to be an affordable platform for young and low-income households, providing them with a viable alternative to a hasty first step onto the property ladder84. Unfortunately though, Ireland remains a country with a high proportion of home ownership and a high desire amongst renters to own a home85. In our section on home ownership we saw how there are real financial benefits to being a homeowner in Ireland. Also, renting here provides less security of tenure than ownership and tenants face unpredictable rent increases.

Security of Tenure The recently published report from the Private Tenancies Rental Board suggests that tenants would consider renting long term if they could be provided with both longer leases and rent certainty.86 The Green Party believes that it is imperative that rent certainty is given in tandem with longer leases. To give the former without the latter may lead to landlords evicting tenants between leases in an effort to increase rents dramatically87. Similarly, to give longer leases without any rent certainty does not provide security to tenants, which will damage the creation of a stable rental sector, which is essential

80

National Transport Authority (2013), Planning and Development of Large Scale, Rail Focused Residential Areas in Dublin, pg 19 81


Daft.ie (2015), Rental Report: An Analysis of Recent Trends In the Irish Rental Market. 2014 Year in Review, pg 8 83

NESC: Ireland’s Rental Sector, May 2015, pg 17 84

Cuerpo, Kalantaryan, & Pontuch, (2014), Rental Market Regulation in the European Union, European Economy: Economic Papers, April,

Brussels: European Commission, pg 14 85



PTRB: Rent Stability in the Private Rented Sector, Sept 2014, pg 82


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to stabilising house prices and ensuring a stable market for landlords. As shown in the Netherlands and Germany, landlords also benefit from strong tenancy security, because it creates the long-term demand for rental housing, and there are no calls for weakening tenancy security88. Rental regulations should strike a balance between landlords’ and tenants’ interests, create security of tenure and avoid market segmentation between sitting and new tenants89.

Another security-related issue only comes to the fore as renters age. A homeowner experiences a lowering of housing expenditure when a mortgage is repaid, which helps to balance the lower income people have in retirement. In England, higher renting among the current cohort of younger people was projected to lead to a subsequent fall in homeownership among pensioners to 60 per cent by 2060. The rise in the number of pensioners who rent their accommodation is projected to result in an increase in expenditure on housing benefit from £5.32bn in 2009 to £13.45bn in 206090. They will also affect subsequent generations, as they will not have the benefit of inheritance to help them gain a footing on the property ladder. There may also be a substantial reduction in the payment of capital gains and inheritance tax paid into the exchequer as a result. If owner-occupation were to become a less common form of tenure, we will need to plan for these changes through taxation and ensure that enough affordable accommodation is available to our growing elderly population.91

The Green Party also believes that without adequate supply, regulation to create secure occupancy will generate pressures in the rental sector, so we advocate a delay on the introduction of measure to provide security of tenure until housing supply of a sustainable rate commences.

Rent Certainty While the proportion spent on housing has increased for all tenure types; this increase has been sharpest among those renting privately since 1987.92 Research by I-Reach showed that 15 per cent of tenants had moved out of their previous rental accommodation as the rent was too high, with this figure at 18 per cent for tenants in Dublin (I-Reach, 2014 cited in NESC Ireland Rental Sector Report). Ireland currently has an element of rent control in that for any tenancy registered with the Private Residential Tenancies Board (PRTB), the landlord can only seek an increase once a year. For a fee of €15 an unhappy tenant can ask the PRTB to set the rent and the new rent cannot be higher than the market rent.93

The Green Party proposes that tenants need greater rent certainty if we are to achieve a stable private rental sector. The recent PTRB report found that only 1 in 5 landlords considered being a landlord as an additional source of income94, therefore we assert that the introduction of rent controls that stabilize the market will be acceptable as long as the rent agreed covers the cost of maintaining the property and the debt repayments on it.

The argument that any additional form of rent-control will inevitably reduce investment in the sector is not supported by evidence. Research into this area has shown that there is no simple or consistent relationship between regulation and the size of the rented sector. In some countries where regulation has been stable or increased, the sector has declined rapidly, while in others there has been little change in scale. The relationship between the levels and changes in the size of the sector and changes

88

De Boer, R & Bitetti, R(2014),A Revival of the Private Rental Sector of the Housing Market? Lessons from Germany, Finland, the Czech

Republic and the Netherlands, pg 22 89

Andrews, Caldera Sánchez, & Johansson, (2001), Housing Markets and Structural Policies in OECD Countries, pg 52 90


NESC: Ireland’s Rental Sector, May 2015, pg 26 92


http://www.independent.ie/business/commercial-property/the-right-moves-would-rent-controls-work-30964912.html 94

Private Rented Sector Survey Findings: Tenants, Landlords & Estate Agents for the PTRB, 2015, pg 42

http://www.independent.ie/business/commercial-property/the-right-moves-would-rent-controls-work-30964912.html


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in regulatory frameworks is not consistent across countries (Crook & Kemp 2015 cited in NESC Ireland’s Rental Sector Report). Similarly it should be noted that at the time of the Residential Tenancies Act in 2004 the introduction of regulation on tenure length (and other provisions) was strongly opposed on the grounds that it would damage and shrink the private rental sector. No such outcome materialised. In fact, the number of households renting from a private landlord rose by 110 per cent, from 145,317 to 305,377, in the 2006–2011 inter-censual period95.

We acknowledge that the previous rent-control system in Ireland was abolished in the mid-1980s following a legal challenge by a former Fianna Fáil councillor, which found them to be unconstitutional. We recognise that the legal framework for a new rent-control system needs to be carefully worked out to avoid a repeat of this.

The Green Party is not in favour of tying rent-controls to particular developments or areas. We believe that doing so may discourages households from moving to appropriate sized housing when their life circumstances change, which would lead to the inefficient use of land. We also acknowledge that the level of rent set needs to be such as to maximize the efficient utilization of space where required. We do not want a rent control system that creates a situation where by 3 bedroom houses are habitually occupied by one person. This potential problem will partially be address by ensuring that a diversity of housing types is available within a locality, which is not currently the case96.

In terms of rent control models, we favour the form of rent review popular in Germany, which is to base rents on the official rent guide for the areas (the Mietspiegel, literally ‘mirror rent’). This guide covers rents for the past four years rather than just the immediate past; which creates a lag in the effect of rent increases on reference rents as measured by the Mietspiegel and there is a limit of a 20-per-cent increase in rents over three years.97 The existing PRTB average rent figures could provide a basis to develop a market-related reference point for rents in many larger areas of Ireland. These figures, hosted by the CSO in an interactive databank, show the average monthly rents paid in 446 local areas across Ireland, by property type and number of bedrooms, each year from 2008 to 201398.

Indefinite leases Drawing from the recommendations of the NESC report on Ireland’s rental sector, the Green Party advocates greater certainty for tenants in terms of rent and lease terms, and support a move from 4 year leases to effectively indefinite leases concurrently with an increase in the rental housing supply99.

A recent survey showed that 12 percent of Irish renters had had to move within the previous 12 months due to the dwelling being sold (I-Reach, 2014 cited in NESC Ireland Rental Sector Report). In some countries where rental is characterised by secure occupancy, sale of the property is not a reason for ending a tenancy and property is commonly sold with tenants in situ (e.g. Germany and Sweden). Some argue that this will reduce the sale price of the property but it could make a property more attractive to other landlords. We could also introduce safeguards to minimize any potential loss to a landlord by insisting on the retention of tenants, as happens in Germany100. Removing sale as a reason for ending a lease would significantly improve secure occupancy and the Green Party advocates adoption of this for Ireland.

95

NESC: Ireland’s Rental Sector Report, 2015, pg 67 96




NESC: Ireland’s Rental Sector Report, pg xi 100



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Evictions Moves to minimize the risk of eviction, for any reason, need to be seen in a wider context of stabilizing the private rental sector which would make the property a better investment for the landlord.

Another important lesson, emphasised by de Boer and Bitetti, is that (strong) tenancy security must be coupled with effective eviction procedures, as landlords have to be sure that they can evict tenants that do not fulfill their contractual obligations. It can take 7 - 12 months to have a dispute settled by the PTRB, whereas in France it takes 2 and in Sweden it takes 3 months. This is likely down to the reduction in staff that the PTRB have experienced. The PRTB’s staff numbers reduced from 70 in 2010 to 35 in 2012101but as the PTRB is self-funded by way of landlords’ fees, there is an argument for it to be outside of the hiring rules of government departments102. The Green Party proposes that any moves to make it more difficult to evict tenants should be done in tandem with an improvement of processing times of the PTRB.

Landlords Since 2007, most Irish landlords have been experiencing decreasing returns—reflecting a combination of falling rents, increasing costs and changes to tax treatment. There are, indeed, strong arguments for reconsidering the tax treatment of landlords. These include that private rental is treated differently than other businesses—interest costs are not all deductible, and there is no ‘negative gearing’, which means losses cannot be offset for tax purposes. The tax treatment may also have negative impacts on tenants and on energy consumption insofar as refurbishment costs are not all deductible. 103 We believe that landlords should be able to claim for all wholly and exclusive expenses, including mortgage interest, against rental income on a property. We would propose that this is done gradually for two reasons; firstly, it would give the exchequer time to afford it and secondly, this phasing in would also allow policy makers to target incentives in order to achieve particular objectives, i.e. provide longer leases and rent certainty.

Sustainable Construction

The Green Party believes it is vital for the Government to play a role in setting standards and promoting sustainable building design and construction. We support the recently introduced Construction Industry Register Ireland or CIRI, which is up and running since early March 2014 on a voluntary basis, and will be placed on a statutory footing by 2015. This register will enable consumers to distinguish construction companies, sole traders and builders who met the required obligations from those who did not.

We also believe that we should follow Kildare Co Council's lead and support 100% independent inspections for all new buildings, which will be funded through the Commencement Notice process.

This generation's contribution to our built heritage is the legacy we will pass on to future generations. As such, the Green Party believes that good design by fully qualified and registered professionals should be at the core of all housing projects. The architectural and engineering excellence seen in some of our housing and recognised internationally should become the norm, not the exception. Not only will good design ensure better value building, the lives of those that inhabit those buildings will become enriched.

101

PRTB (2012), Annual Report and Accounts, 2012, pg 6 102


NESC: Ireland’s Rental Sector Report, 2015, pg 64


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The Green Party recognized that great progress has been made in relation to the energy ratings of Ireland’s housing stock and we support moves to capitalize on this with initiatives that

Incentivize the provision of urban farmland, grey-water recycling systems, and cultural spaces.

Encourage energy-neutral construction by both private individuals and organizations

Incentivise the alteration of existing housing stock to increase living density in a sustainable manner.

Allow homeowners and businesses to sell surplus energy to energy providers.

Recognise and remunerate tenants who make a material improvement to the condition or energy efficiency of their rental property. This move will encourage the maintenance and upgrading of our housing stock by all that enjoy its benefits.

Ensure Community Participation in Housing Decisions

Decisions about building and housing development ought to involve the meaningful participation of the local community. Community involvement can improve social cohesion, and often leads to more sustainable developments. We place a particular emphasis on communication and consultation with all stakeholders as part of the decision making process. The Green Party supports increased regional and local engagement in housing provision.

Housing Rights

The Green Party is in favour of letting the people have a say in a referendum on whether or not our Constitution should be amended to include and strengthen protection for economic, social and cultural rights including the right to adequate housing.

Creating Employment as part of Incentivising Supply

CSO data indicate some 43,600 persons unemployed were previously employed in Construction (17% of the total), of which 34,000 have been unemployed for more than 12 months (CSO: Q4 2013 cited in DECLG’s Construction Sector Strategy 2020 Report, 2014). We support NESC’s call for training to be an integral part of new construction projects and suggest that such training programmes should be tailored to target the most at risk of long-term unemployment. We also support the following recommendations made in The Apprenticeship Review Group’s report, which was published on the Department of Education and Skills website in January 2014:

a move away from a generic placement at Level 6 of the national framework of qualifications for all apprenticeship programmes,

that the curriculum for each family of trades, as a group, is reviewed and updated,

that an upper and lower ceiling on recruitment levels should be examined, so that programmes are tailored to labour market needs, while avoiding future skill shortages; and


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that opportunities for progression should be strengthened and a master craftsman qualification considered.


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Chronic Homelessness

Prevention

There is a clear message from the pathways biographies that there needs to be more early intervention and attention to the structural causes and individual risk factors that lead to homelessness. Research has shown that family conflict and relationship problems constitute the most significant contribution leading to homelessness104. This often leads to discontinuities in schooling, which can set a person off on a journey to homelessness105. We need to better resource a flexible preventative services in our communities and safe shelters to help families move towards stability.

Housing First; A New Strategy The approach to homelessness in the past was to try to make homeless people “housing ready”. i.e. you put people into shelters or halfway houses, then get them into treatment and only when they made progress could they get a chance at permanent housing. In recent years, and in light of huge success in other parts of the world, Ireland is now embracing a different strategy, called Housing First. The concept is simple; it is impossible for an individual to address difficulties in their life while living in unstable environments such as on the street or in hostels. To help people address the issues that might have led to their homelessness we need to provide people with a supportive stable environment first. Champion by Utah and the Colorado this approach has resulted in a 72% reduction in homeless in Utah in 8 years106, a 93.8 % retention rate in New York107, and all for a fraction of the cost (approximately 60% less) of the traditional approach. This approach is supported by all of the main homeless charities in Ireland and the Green Party sees it as fundamental to eradication of homelessness in Ireland.

This is not to say that providing a roof over the head of someone with endemic issues such as poverty, stress, and mental health difficulty is going to be the solution. Successful pathways out of homelessness encompass prevention, crisis intervention, intensive and relevant targeted support, and guiding people towards autonomous and independent living situations in transitional and long-term accommodation with appropriate support services. Regular contact with key workers/support workers, particularly in helping people to be independent, autonomous and self-confident, is of paramount importance108.

Children & Young People

In their report in 2011, Focus Ireland reported that 68% of children leaving care experience homelessness within 2 years109. Foster families can offer a valuable safety net for these vulnerable young people. At present, foster families receive no form of payment for continuing to support a young person after the age of 18 if they are not in enrolled in a course. This needs to be urgently addressed particularly in light of the current lack of affordable housing and employment for young people.

104

P Mayock and N Carr, ‘Youth Homelessness in Ireland’, HSE, Ireland, 2008, pg 9 105

P Mayock and S Sheridan, ‘Women’s ‘Journeys’ to Homelessness’, Feb 2012, TC, pg 1 106

https://pathwaystohousing.org/programs-partners/stories/housing-first-utah accessed 14.09.15 107

Fairmount Ventures Inc, Evaluation of Pathways to Housing PA , Jan 2011, pg 21 108

Jane Pillinger, Homeless Pathways, Focus Ireland, 2007, pg 65 109

P Kelleher, C Kelleher, M Corbett, ‘Left Out on their Own’, Focus Ireland, 2000, pg 16

https://pathwaystohousing.org/programs-partners/stories/housing-first-utah


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Where the young person moves to independent living, he or she should be supported to find accommodation and to move into, and settle in, accommodation. They should also be entitled to a moving-in allowance to cover designated household items. Aftercare policies should also address the role of foster families, residential care units and birth families in providing aftercare.

Those who suffer from chronic homelessness often suffer isolation due to family breakdown and limited social networks. A drop-in service that facilitates peer support has shown to be very successful in addressing this issue110 and should be rolled-out on a nationwide basis in easily accessible locations.

Special provision should be made for young people with special needs, such as intellectual disability or mental health problems, who continue to live with their foster families after they reach the age of 18 years.

The Green Party supports the full implementation of the Aftercare Bill, which guarantees a right to and aftercare assessment on turning 18 and leaving care. We also advocate for full resourcing of this service given the high prevalence of young people in care ending up homeless.

The Travelling Community

Health boards and organisations such as Focus Ireland and the Salvation Army that are providing services for young Travellers who are homeless should be encouraged to develop culturally appropriate nationwide responses to the needs of young Travellers. The out-of-hours service should have access to beds in residential centres specifically for Travellers or to residential centres where staff is trained to respond to the needs of Travellers.

The Migrant Community

Habital Residence Condition (HRC decisions) from the social welfare appeals office should be published to ensure that applicants can identify criteria they must meet and to ensure transparency, consistency and confidence in the process. And in the case where an appeal for residency status is pending, homeless migrants should, at a minimum, continue to have access to temporary emergency accommodation.

The Green Party supports the provision of information on avoiding homelessness in Citizens Information Centres throughout the country and on the Citizen’s Information website but we note that this information is only available in two languages; English & Polish111. The Green Party believes that such leaflets should be available in languages appropriate to their location and that the website should be translated into as many languages as is required.

Health

At present, medical cards are issued based on permanent residential address, a situation wholly inappropriate for homeless households. At present, temporary emergency medical cards will be provided to families and individuals attending the Homeless Persons Unit (HPU) but this system is inadequate for the ‘hidden homeless’ staying with friends, living in overcrowded accommodation or involuntarily sharing with family and for any other homeless family or individual not accessing the

110

Evaluation of Spokes Program, Focus Ireland, 2010, pg 29 111

http://www.citizensinformation.ie/en/housing/losing_your_home/agencies_for_homeless_people.html accessed 14/09/15

http://www.citizensinformation.ie/en/housing/losing_your_home/agencies_for_homeless_people.html


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HPU. Similarly the current system of referral is address and catchment-area based; a system wholly inappropriate for homeless households. The failure of the present medical card and referral system is forcing homeless families and individuals to inappropriately attend A&E departments112.

There is also a need for appropriate discharge of patients with mental illness who have no permanent address. The current practice of discharging psychiatric patients to the HPU is not acceptable and is detrimental to the welfare and mental well being of the patient. Patients released from psychiatric care need on-going care and support, and this is not available through the HPU, which is primarily concerned with placing homeless individuals in emergency accommodation.

There needs to be greater recognition among the medical profession that homeless individuals with psychiatric needs face additional difficulties such as access to, storage of and taking of medication. A process to support the safe and regular taking of medication needs to be piloted and implemented.

There needs to be greater access to chiropodists and podiatrists for those in emergency accommodation, who frequently suffer from foot problems due to the nomadic nature of their predicament113.

Maintaining a stable lifestyle in housing can be a challenge for many vulnerable people but the opportunity for success is greatly enhanced by supportive drop-in clinics staffed by peers who have been through similar experiences114. These clinics could double up as cafes offering well-balanced substantial meals, which would help improve the health of those experiencing homelessness. They would need to operate on a nationwide basis, in easily accessible locations and with opening hours appropriate to the needs of its customers.

Substance Addiction

Similar drug abuse compounds the difficulties that people encounter in being able to maintain a stable life that is required to keep them in housing. Becoming drug-free is a journey and it is essential that we support homeless individuals with drug or alcohol addiction so that they can start that journey when they are ready. We do this by making sure that enough of our emergency accommodation is available to service those with addiction issues, in addition to drug and alcohol-free emergency accommodation to lessen a vulnerable person’s exposure to substance abuse. The system of accessing drug treatment services based on residential address is wholly inappropriate for the homeless population. Possession of an address should not be a precursor to obtaining addiction treatment.

The Green Party believes that programmes to address the needs of the chronically homeless need to strike a balance between soft, individualised supports and measurable outcomes. Those experiencing homelessness, particularly drug users, often lead chaotic lives and programmes need to be flexible enough to accommodate their difficulties without losing sight of the long-term objective.

Prison

Prison and hospital are predictable risks for both heroin relapse and homelessness. This risk could be lessened through the provision of suitable accommodation on release. Offenders frequently lose their

112



Evaluation of Spokes Program, Focus Ireland, 2010, pg 29


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place on community or city drug treatment clinics (waiting) lists by not notifying clinics about their incarceration. This is exacerbated by offender’s reluctance to inform the prison authorities about any drug treatment they may be applying for. We support the provision of drug treatment facilities to offenders in prisons and we welcome the commissioning of a review of these services115. We note that no deadline has been given for this review; we would advocate that it should report back within a year at the latest. In the interim, the Green Party supports the implementation of any outstanding recommendations outlined in DCU’s 2007 report ‘Counseling and Prison based Addiction Treatment’116.

Currently offenders with long sentences are taken off the waiting list for accommodation with the Local Authority. We argue that offenders whose sentences are shorter than the wait time on the waiting list, which can be 10 years with some Local Authorities, should remain on the waiting list.

We would extend the pilot scheme between the Prison service and Louth County Council, which connects offenders with less than 9 months on their sentence with the Local Authority housing department. Currently, no one is charged with finding accommodation for offenders at risk of homelessness; we would appoint a network of dedicated resettlement officers in every prison or extend the remit of existing personnel to execute this task.

Currently offenders need to have an address to avail of early or temporary release. This disincentivizes offenders from disclosing their risk of homelessness until the 11th hour, when they’ve been awarded early or temporary releases leading to panicked searching of accommodation. We would open halfway houses for all offenders at risk of homelessness to resolve this matter. These halfway houses could also serve as a safety net for offenders whose crime makes it particular difficult to secure accommodation in the private sector, such as arsonists.

This research shows that the imposition of custodial sentences for relatively minor offences led to family and spousal relationship destabilisation and accommodation and employment loss. Crimes that are survivalist nature, i.e. not always predatory but based on subsistence and need, may suggest that custodial sentences might not always be appropriate for such offenders. The Green Party would support an initiative to measure the outcome of issuing community service for non-predatory offences instead of incarceration.

Often the social problems that led a person to commit a crime can increase their risk of homelessness. Identification of family mediation and family support needs should be an integral part of the assessment process and the appropriate services developed to ensure that family networks are protected during periods of imprisonment117. We support a nationwide rollout of the pilot project in Limerick prison, which provides parenting courses to offenders and their family. We also support the nationwide rollout of the Community Return Scheme, which manages the integration of offenders on temporary release into the community with respect to accommodation and employment. Would also support the development of this scheme into a holistic service that provides emotional, psychological, medical, social and employment support services.

We support the move towards avoiding release times between Friday afternoon and Monday morning, but currently some offenders cannot be released earlier than the last day of their sentence. This can result in a person without an address being released between Friday afternoon and Monday

115

http://www.irishtimes.com/news/crime-and-law/prison-drug-and-alcohol-addiction-services-for-review-1.2217411 accessed 14/09/15 116

G Moore, M Redmond, R Glover, C Stevenson, P Gallagher, E Gordon, R Lines and Linda O Driscoll, Counseling and Prison based

Addiction Treatment, DCU, 2007, pg 133 117

C hickey, ‘Crime and Homelessness’, Focus Ireland, 2002, pg 10

http://www.irishtimes.com/news/crime-and-law/prison-drug-and-alcohol-addiction-services-for-review-1.2217411


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morning. We would support allowing the prison authorities to determine the optimum time to release an offender to avoid this, regardless of the crime, once the new release date is less than 7 days from the original release date.

Families

We know from international experience that people who experience homelessness in childhood are more likely to experience it throughout their lives, so the key challenge with families is to avoid this happening. An approach that has shown great success in Georgia, America is called Rapid Rehousing118. It put families into homes of their own very quickly, rather than keep them in shelters or transitional housing while they get housing ready.

Employment

The issue of access to hostels is also an area of concern. Some hostels have entry procedures that require residents to be in place by 5 p.m.; this obviously militates against an individual trying to hold down a job or any kind of “normal” lifestyle. These kinds of issues need to be addressed to enable hostel users as normal a life as possible119.

The Green Party recognise that stable housing and stable employment should be the main focus of any policy aimed at eradicating homelessness but we appreciate that this is a journey for many. Therefore, we support initiatives that offer employment to homeless or formerly homeless individuals such as the ‘My Streets’ programme in Drogheda. This scheme trains homeless or formerly homeless individuals so that they can give unique tours of the city they live in. We also support the provision of financial incentives to employers to hire homeless or formerly homeless individuals.

Rent supplement is means tested and currently, once the income of a household goes over a certain figure, the supplement is immediately cut off and if a person finds themselves out of work again they need to reapply for rent supplement and go through the same application process all over again. We believe that this disincentivises those on rent supplement from seeking work. We believe that should a household have to reapply for rent supplement within a given period, they should not have to go through the full approval process again. Similarly, we believe that rent supplement payments should be tapered off as income levels increase.

Government Agencies

Interacting with government agency is often a long, protracted and often frustrating business. Individuals with no permanent address or with limited funds may find it difficult to maintain the pressure that’s often required to deliver results. Also, slow administration/decision making on rent supplement claims frequently result in landlords opting for non-RS households. Of course, the best way to address this problem is to make the process more efficient and effective, but in the interim a re-introduction of the free phone number for all callers to Central Rent Units who ease the financial burden on those having to interact with the department. Also, case officers should be allocated to specific geographic areas to enable applicants to have a consistent point of contact to discuss their applications.

118

M Cunningham, S Gillespie and J Anderson, ‘Rapid Re-housing: What the research says’, Urban Institute, June 2015, pg 15 119

FT Houghton and C Hickey, ‘Caught in a Trap’, Focus Ireland, 2001, pg 36


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To work effectively, all departments involved in addressing homelessness need to work in a cordinated and pro-active manner, preferably through one agency or an integrated ‘one stop shop’. This team should include:

The person making the decision on Rent Supplement

The person making the decision on the Housing First Supplement (if different)

The person making decisions in respect of SLI

The person making decisions on allocation of any floating mental health supports

Any person (e.g. Environmental Health Officer) making decisions on standards of accommodation that apply.

Any ‘accommodation finders’ in the voluntary sector.

Education & Information Focus Ireland reports that one of the reasons people lose their home is not having information on their rights or options at the right time120. We need to make sure that information about avoiding homelessness is readily available in numerous languages the community and that citizens are aware of its existence.

Data Collection Currently the number of people at risk or suffering homelessness is unreliable and makes it difficult to accurately project the needs for the future. The ‘hidden homeless’, individuals in prison or hospital without permanent homes, and young people leaving care are not recorded, which gives us only a partial view of the problem. Part of this problem is due to the need for people to register on the housing list in order to get rent allowance. By creating two separate lists for both, we will have a much clearer picture of the real needs of people at risk of homelessness.

Current Social Housing Tenants

Currently, individuals renting from Local Authorities do not have an independent body to report grievances to if their landlord – the Local Authority – fails in their duty. We propose that the remit of the Private Tenancies Board should be extended to local authority tenants or another similarly styled organization should be created for Local Authority Tenants.

Local Authority tenants should also get as much notice as is possible that the housing authority is intending to apply for a possession order, and we propose a period of longer than 3 weeks - 30 working days for tenants who have engaged with the Local Authority. This should enable the tenant/tenants the opportunity to obtain advice and information so that they can participate meaningfully in the legal process.

It would also be better for society if Local Authorities were obliged to offer tenancy sustainment supports to tenants who had received a warning before resorting to legal action. Sustainment orders

120

Annual Report, Focus Ireland, 2012, pg 11


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could well help tenants overcome the behaviour which led to the warning, reducing the risk of homelessness and avoiding wasteful legal costs. Legislation relating to Local Authority housing should explicitly require the local authority to do ‘everything reasonable to prevent it tenants becoming homelessness’.

The Local Authority’s ability to bar an individual or family from the housing list for 3 years due to anti-social behavior is effectively a 3-year sentence of homelessness. During this time the Local Authority must maintain the family in a B&B for this period, at public expense. The children frequently become poor attenders at school, the parents’ authority and morale is totally undermined and whatever social problems existed in the first place are profoundly deepened 121.

In a large number of cases, the problems of rent arrears and anti-social behaviour are, at heart, social problems and a punitive legal approach does not resolve them, but simply move them elsewhere, to someone else’s neighbourhood and at greater monetary cost. Clearer guidelines, mechanisms for proving and mechanisms for challenging antisocial behaviour evictions and policy by the local authorities need to be put in place.

Where a person living in private rented accommodation is placed on HAP as a result of long-term unemployment and subsequently returns to low paid employment pays a reduced, differential rent. However, another person who never experienced unemployment would not receive any subsidy even where they are paying the same rent and earning the same wage. We believe that there needs to be the same income threshold for everyone placed on HAP, regardless of circumstance.

END

121

Focus Ireland, submission on housing bill 2013, pg 3

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