Funding Allocated For Housing In 2017 'Transformational' - Coveney

Additional funding allocated for housing in 2017 has been described as "transformational", by the Minister for Housing, Planning, Community and Local Government, Simon Coveney.

In Budget 2017, the Government is allocating €1.2 billion to housing programmes, a 50% increase over 2016. This investment will see the housing needs of over 21,000 households being met in 2017. In addition, local authorities will fund a range of housing services to the value of €92 million from surplus Local Property Tax receipts, bringing the total housing provision in 2017 to almost €1.3bn.

Speaking after Budget 2017 was announced, Minister Coveney said: "What I am announcing today represents a transformational budget for housing in Ireland. I said at the launch of Rebuilding Ireland in July that meeting the housing challenge is the key priority for this Government.

"The package of measures I am announcing with Cabinet colleagues demonstrates the extent of that commitment. The investment provided by the Exchequer and by local authorities will allow us to meet the housing needs of 21,050 families in 2017.

"As part of this, I am providing an increase of €28m in funding for homeless services, underscoring the particular priority I attach to this issue, including the provision of emergency supports for rough sleepers and ending reliance on the use of hotels for homeless families by mid-2017."

Minister Coveney said that the Budget 2017 contains a comprehensive package of supports for the wider housing market, including a significant tax rebate for first time buyers to stimulate the supply of new homes, extension of mortgage interest relief for existing homeowners, and changes to Capital Acquisitions tax.

The Minister continued: "Total funding for my Department in 2017 is €1.78 billion compared to €1.38 billion this year. This includes €702m in capital funding – an increase of 48% on 2016 and €1,075m in current funding which is an increase of 18% on this year.

"Overall, the increase of €394m or 28% on 2016.The bulk of the increase is going to housing which is the Government's number one priority issue.

"An additional €2m is also being provided in 2017 for the RAPID programme for disadvantaged areas and a new Community Facilities Fund is being included, with an initial €2m being provided in 2017."

(MH/JP)