HOUSING PLAN FOR BALLINASLOE Claire Kerrane TD
588
HOUSEHOLDS ON THE WAITING LIST FOR SOCIAL HOUSING
211
PEOPLE IN RECEIPT OF THE HOUSING ASSISTANCE PAYMENT (HAP)
AVERAGE HOUSE PRICES IN COUNTY GALWAY
€205,837
2,857 RENTERS IN BALLINASLOE
AVERAGE RENT IN BALLINASLOE €743.72
7.9% ON THE SAME TIME LAST YEAR
36 ACRES OF COUNCIL OWNED LAND FOR RESIDENTIAL USE
HOUSING PLAN FOR BALLINASLOE
Contents Housing in Ballinasloe
2
Social Housing
3
Vacant properties
4
Homelessness & Homeless Services in Ballinasloe 5 Rents in Ballinasloe
7
HAP (Housing Assistance Payment) Tenancies
8
House Prices in Ballinasloe
10
Rebuilding Ireland Home Loan
11
Recommendations
12
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HOUSING PLAN FOR BALLINASLOE
Housing in Ballinasloe According to the 2016 Census, the majority of those living in Ballinasloe are renting from a private landlord (1,789 persons) followed closely by those who own their own home with no mortgage (1,675 persons) and those who have a mortgage (1,585 persons). There is also a sizeable portion of the population who rent through the Local Authority (1,068 persons). In total, most of those living in Ballinasloe are renters be that privately or though the Council. Figure 1 below shows the make up of households by occupancy type.
HOUSEHOLDS BY TYPE OF OCCUPANCY
1%
1%
2%
17%
25%
28%
26%
Owner Occupier with Mortgage
Rented from Voluntary Body
Owner Occupier no Mortgage
Occupied free of rent
Private Rent
Not stated
Rented from Local Authority
Figure 1: Households by Type of Occupancy according to Census 2016 data
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HOUSING PLAN FOR BALLINASLOE
Social Housing There are currently 3,536 households on the waiting list for Social Housing in County Galway with 588 households seeking a home in Ballinasloe.1 Of the 588 households on the waiting list for social housing, 388 households have been on the list for under 5 years with 152 on the list for between 5 and 10 years. Galway County Council use the Housing Differential Rent Scheme to calculate the amount of rent paid by households which varies depending on household income. In essence, this means that rent is based on ability to pay where if income is low, rent is low and if household income increases so too does the rent. Rent reviews are carried out annually. A person can only qualify for the social housing waiting list if their income is below €25,000. The maximum income increases to €30,000 for a household (this is the single person allowance with an additional 5% for each adult (max 10%) and 2.5% for each child (max 10%).2 A review into the income eligibility for social housing in each local authority area is underway and has been for some time however, despite being asked the Minister has not indicated when the review will be published. Galway County Council own 36 acres of land which has been zoned for residential use. We need to see these lands developed for public housing – social and affordable.
Social Housing: Ongoing Developments in Ballinasloe
Dunlo Hill (Turnkey) – 40 units – building work to commence soon
Dunlo Street (Regeneration) – approx. 12 units
Possible build on site at Poolboy
Ahascragh – planning permission received for 18 units
2 units in Ballinasloe Town underway through Buy & Renew
Recommendations:
Publish the findings of the review into the income thresholds in order to qualify for Social Housing
Deliver 100,000 public homes on public lands over a term in Government (5 years) to meet social and affordable need
Prioritise the use of public land for delivery of public housing by Local Authorities
1 http://www.galway.ie/en/services/housing/demand/ 2 http://www.galway.ie/en/services/housing/lahousing/
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HOUSING PLAN FOR BALLINASLOE
Vacant Properties According to Census 2016 data, there were 477 vacant dwellings (excluding vacant holiday homes) in Ballinasloe Urban area and 30 in Ballinasloe Rural. Rebuilding Ireland, the Government’s Housing Plan launched in 2016 included commitments on incentivising the return of vacant homes back into use with three schemes introduced: Repair & Lease, Housing Agency Fund and Buy & Renew. However, all three schemes combined only targeted 5,600 vacant homes over six years – just 3% of the total vacant stock across the State. The table below shows the number of properties brought back into use by Galway County Council up to the end of 2020.
REPAIR & LEASE
2
HOUSING AGENCY FUND
22
BUY & RENEW
0
Recommendations:
A dedicated vacant homes officer in Galway County Council
Increase funding and support for Repair and Lease, Buy and Renew and the Housing Agency Fund so that they can reach their potential in bringing vacant properties in Ballinasloe back into use
The roll out a specific scheme, ran in conjunction with the Department of Health and the Department of Housing to bring some homes in the Fair Deal Schemes back into use
Specific year on year targets for returning vacant homes to use must be set in Galway County Council
Government should introduce a vacant homes tax applicable to properties vacant more than 6 months within Local Authority Areas determined by the Local Authorities as having a high level of housing need and a high level of vacancy* (*Any such proposal would have exemptions for homes in probate or in the Fair Deal Scheme)
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HOUSING PLAN FOR BALLINASLOE
Homelessness & Homeless Services in Ballinasloe While there is no specific breakdown of homeless numbers for Ballinasloe. Homeless figures for Galway County and City in April 2021 showed 255 persons3 were homeless.
Homeless Services/Homelessness While homelessness may not be visible in numbers of rough sleepers on the streets of Ballinasloe, there is a hidden homelessness problem. The Simon Community established a base in Ballinasloe in 2011 and since then, demand for services has increased and this has been magnified during the Covid-19 crisis. The Simon Community based in Ballinasloe offer a Drop-In service (which became by appointment during Covod-19) and also take referrals by phone and online. They provide a range of supports and services, some which require only a brief intervention and in other cases, deal with more complex cases.
3
Homelessness Data, Department of Housing available here: https://assets.gov.ie/136251/d731f6be-28e64cb6-865e-308019e7062a.pdf
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HOUSING PLAN FOR BALLINASLOE
They are working to full capacity and they are overworked while also being underfunded. On average per month, the service in Ballinasloe receives around 25-30 referrals outside of the typical brief interventions they make on a somewhat daily basis. The Simon Community have highlighted the lack of available private rented accommodation in Ballinasloe, the level of hidden homelessness and the need for wrap-around supports as delivered through the Housing First Programme which is currently being rolled out in County Galway. Housing First is a person-centred model that focuses on ending homelessness for people who have been long term homeless or who are particularly vulnerable. It sees persons provided with their own secure accommodation as well as providing access to intensive and specialised support services.
Recommendations:
Set a date within the lifetime of the Government, to end long term homelessness
Increase funding for local homeless services relied on by Local Authorities such as the Simon Community
Double the provision of Housing First housing allocations
Limit the length of time any person can stay in emergency accommodation to a maximum of 6 months
Increase funding for domestic violence refuge provision to meet need within the lifetime of the Government
Retain Rent Supplement as a permanent support for domestic abuse survivors
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HOUSING PLAN FOR BALLINASLOE
Rents in Ballinasloe In the last year alone, rents have increased in County Galway by 5%. Galway is one of eight Counties with average rents now standing at above €1,000. At the end of 2020, average rents in Ballinasloe reached €743.72 per month.4 Exactly, one year before, at the end of 2019, the average rent in Ballinasloe was €688.815 representing an increase in rents in Ballinasloe of 7.9% in one year. As Ballinasloe is not included in the Rent Pressure Zones, rents can increase with little or no protections for Tenants. In some cases, rents are increasing in Ballinasloe by between €300 and €400 per month following rent reviews. This represents an extortionate increase for a tenant and their families especially when these increases come in the midst of a global pandemic. As rents continue to spiral out of control, we need to ban any further increases in order to protect families from homelessness. This needs to be followed by an overhaul of rents in Ireland by linking rents to the Consumer Price Index. There is also a major issue with supply in Ballinasloe. Today, there are just three properties available for rent in Ballinasloe ranging from a one-bed apartment for €850 per month to a three-bed apartment for €1,125 per month.
Recommendations:
A 3-year ban on rent increases in the private rental sector (including for HAP tenants)
Introduce a refundable tax credit for private rental tenants to put a month’s rent back in renters’ pockets
Provide for real tenancies of indefinite duration
An NCT style certification for all rental properties to ensure compliance with minimum standards, including fire safety
4 https://www.rtb.ie/images/uploads/forms/RTB_Rent_Index_Report_Q4_2020_updated.pdf 5 https://www.rtb.ie/images/uploads/Comms%20and%20Research/RTB_Rent_Index_2019_Q4_%284%29_FINAL_WEB.pdf
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HOUSING PLAN FOR BALLINASLOE
HAP Tenancies There are currently 211 households on the waiting list for social housing in receipt of the Housing Assistance Payment. This means that these households are being supported to rent privately in Ballinasloe.
HAP (Housing Assistance Payments) Tenancies The Housing Assistance Payment is available to those who qualify for social housing which sees them rent privately with the support of the Council to pay their rent to a landlord with the Tenant contributing. The contribution made by the Tenant is determined in the same way it is as if they were renting directly from the Council – the more income they have, the more rent contribution they make. There is a cap on how much of a contribution the Council will make to a landlord in rent payment and this varies by local authority. In Galway County Council, the HAP limit for one adult is €575 which in Ballinasloe where rents can be €850 per month, this leaves the Tenant having to make up the difference.
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HOUSING PLAN FOR BALLINASLOE
There are a number of issues with the HAP. It is well known that some Tenants pay an under the table top-up to the landlord which does not go through the Council. It is not known how widespread this issue is and little has been done to tackle it. There are also issues with the standard of some HAP properties and while there are Inspectors in place, some landlords can be slow to act where repairs are needed.
2018
661
2019
719
2020
808
2021
7
(to end of Q1)
Table 1: No. of HAP Inspections carried out by Galway County Council6 Similar to those renting privately without supports such as the HAP, Tenants have little protections that in some cases, they are afraid to report problems to their landlord for fear of rent increases or eviction. Organisations such as The Society of St. Vincent de Paul have raised concerns about the HAP, specifically that HAP limits are not in line with market rents; that HAP offered insufficient security of tenure and that it doesn’t meet the needs of those who have a long-term housing need. HAP represents the Government’s over-reliance on the private sector to meet social and affordable housing need and this needs to end.
Recommendations:
An urgent and time limited review of the Housing Assistance Payment
Ramping up of the delivery of real affordable rental and purchase homes as well as an increase in Council and Approved Housing Body building and acquisition to begin to reduce the number of households dependent on subsidies in the private rental sector
6
PQ Ref. No.29845/21
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HOUSING PLAN FOR BALLINASLOE
House Prices Average house prices in County Galway fell in the first quarter of 2021 compared to the same time last year by 2% with an average price of €205,837.7 According to houses for sale in Ballinasloe online today, house prices vary with four-bedroom homes on the market varying from €160,000 to €235,000.8 For many, affordability is a major challenge as they struggle to rent at enormous cost and are therefore, unable to save a deposit to buy their own home. Banks will not consider lending without at least 10% of a deposit of the sale price and due to unprecedented demand for housing, especially during Covid-19 many houses are being sold for above the asking price which puts the true cost further out of reach. Both rent prices and demand are driving up house prices which is making it almost impossible for First Time Buyers.
Recommendations:
Government must recognise that delivering social and affordable housing and addressing the crisis in the rental sector will reduce the pressure that is pushing up house prices.
Double direct capital investment in public housing to meet social and affordable need to at least €2.8 billion annually
Agree annual targets for the delivery of affordable cost rental and affordable purchase homes with Galway County Council, including those to be delivered by Approved Housing Bodies, Co-operatives and Community Housing Trusts
7 https://ww1.daft.ie/report/2021-Q1-houseprice-daftreport.pdf?d_rd=1 8 https://www.daft.ie/property-for-sale/ballinasloe-galway?pageSize=20&from=0
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HOUSING PLAN FOR BALLINASLOE
Rebuilding Ireland: Home Loan Mortgages The Rebuilding Ireland Home Loan was introduced to assist those who are unable to qualify for lending for a mortgage through the Banks by providing them with lending from their Local Authority. A person or couple must have been refused lending by at least three Financial Institutions before applying for the Home Loan. This loan would be particularly attractive to those who fall between two stools – they earn too much to qualify for Social Housing but do not earn enough to draw down a mortgage from the Bank. The below table9 details the number of Rebuilding Ireland Home Loan applications approved with a very small number actually drawn down.
YEAR
APPROVED
DRAWN DOWN
2019
6
1
2020
10
1
2021
10
N/A
(UP TO MAY 2021)
Recommendation:
9
Carry out a review of the Rebuilding Ireland Home Loan
Information received by email from Galway County Council
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HOUSING PLAN FOR BALLINASLOE
Recommendations
Social Housing
Publish the findings of the review into the income thresholds in order to qualify for Social Housing
Deliver 100,000 public homes on public lands over a term in Government (5 years) to meet social and affordable need
Prioritise the use of public land for delivery of public housing by Local Authorities
Vacant Properties
A dedicated vacant homes officer in Galway County Council
Increase funding and support for Repair and Lease, Buy and Renew and the Housing Agency Fund so that they can reach their potential in bringing vacant properties in Ballinasloe back into use
The roll out a specific scheme, ran in conjunction with the Department of Health and the Department of Housing to bring some homes in the Fair Deal Schemes back into use
Specific year on year targets for returning vacant homes to use must be set in Galway County Council
Government should introduce a vacant homes tax applicable to properties vacant more than 6 months within Local Authority Areas determined by the Local Authorities as having a high level of housing need and a high level of vacancy* (*Any such proposal would have exemptions for homes in probate or in the Fair Deal Scheme)
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HOUSING PLAN FOR BALLINASLOE
Homeless Services
Set a date within the lifetime of the Government, to end long term homelessness
Increase funding for local homeless services relied on by Local Authorities such as the Simon Community
Double the provision of Housing First housing allocations
Limit the length of time any person can stay in emergency accommodation to a maximum of 6 months
Increase funding for domestic violence refuge provision to meet need within the lifetime of the Government
Retain Rent Supplement as a permanent support for domestic abuse survivors
Rents
A 3-year ban on rent increases in the private rental sector (including for HAP tenants)
Introduce a refundable tax credit for private rental tenants to put a month’s rent back in renters’ pockets
Provide for real tenancies of indefinite duration
An NCT style certification for all rental properties to ensure compliance with minimum standards, including fire safety
13
HOUSING PLAN FOR BALLINASLOE
Housing Assistance Payments
An urgent and time limited review of the Housing Assistance Payment
Ramping up of the delivery of real affordable rental and purchase homes as well as an increase in Council and Approved Housing Body building and acquisition to begin to reduce the number of households dependent on subsidies in the private rental sector
House Prices
Government must recognise that delivering social and affordable housing and addressing the crisis in the rental sector will reduce the pressure that is pushing up house prices.
Double direct capital investment in public housing to meet social and affordable need to at least €2.8 billion annually
Agree annual targets for the delivery of affordable cost rental and affordable purchase homes with Galway County Council, including those to be delivered by Approved Housing Bodies, Co-operatives, and Community Housing Trusts
Rebuilding Ireland: Home Loan
Carry out a review of the Rebuilding Ireland Home Loan
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HOUSING PLAN FOR BALLINASLOE
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HOUSING PLAN FOR BALLINASLOE
www.sinnfein.ie
Claire Kerrane TD
Roscommon/Galway Sinn Féin Spokesperson on Social Protection
claire.kerrane@oireachtas.ie
0612
