Appendix B: Kilkenny Housing Strategy

1.1 Introduction

The Housing Strategy is prepared in accordance with Part V of the Planning and Development Act, 2000 and Part II of the Planning and Development (Amendment) Act, 2002. This Strategy is for the period 2014-2020, which is the lifetime of the draft Development Plan. The Acts specify that the housing strategy shall provide sufficient residential zoned land for the period of the Development Plan, ensure that housing is available for persons of different income levels with particular provision for those in need of social or affordable housing, ensure a mixture of house types and sizes to meet the requirements of different categories of households, including the needs of elderly and disabled persons and counteract undue segregation of people of different social backgrounds.

The key purpose of the current strategy is to identify the overall need for housing in the City and County and ensure that Kilkenny Local Authorities facilitate the creation of an environment that will allow this need to be satisfied in line with the overarching principle of delivering sustainable communities.

The last review of the Housing Strategy coincided with the peak of the property bubble.  The seismic changes that have taken place in the economy and in particular the housing market since then mean a review of the strategy is required.

This Housing Strategy replaces the strategy which was prepared for the period 2008 to 2014.

1.2 Statutory Background

The preparation of a Housing Strategy is a requirement under the Planning and Development Act, 2000 Part V and Part II of the Planning and Development (Amendment) Act 2002. The 2000 Act requires each Planning Authority to prepare a housing strategy which is to be integrated into their County Development Plan. In particular the Acts specify that the Housing Strategy shall:

• Ensure that adequate zoned and serviced lands for residential purposes are available inappropriate locations to meet the requirements of the Housing Strategy and the existing and future housing demand – including social and affordable housing.
•  Ensure that housing is available to people of different income levels and determine the distribution of this housing.
•  Ensure that a mixture of house types and sizes is developed to reasonably match the requirements of the different categories of households, including the special requirements of elderly persons and persons with disabilities as reflected in the Housing Needs Assessment carried out the Housing Authority.
• Counteract undue segregation in housing between people of different social backgrounds.
• Provide that a specific percentage (not exceeding 20%) of the land zoned in the Development Plan for residential use or a mixture of residential and other uses, shall be reserved for those in need of social or affordable housing in the area. Part V applies to all applications for residential development on sites in excess of 0.1ha or 4 units on residential/mixed use (where residential is part) zoned land.

 1.3 Assumptions and Approach

Throughout the following calculations and subsequent analysis a number of assumptions have been made. Where possible data at county level has been used. If this has not been possible data has been accessed at regional/ national levels. The analysis sets out to determine housing need and housing affordability by analysis of county level estimates of population, household size, household income and house prices.

2.0 Housing Policy

Kilkenny Local Authorities seek to meet the needs of those requiring accommodation through a range of social housing options.  The core objective of housing policy is to ensure that all our citizens enjoy an adequate standard of housing accommodation appropriate to their needs and, as far as possible in a location and tenure of their choice and to provide a responsive and supportive housing service for those in need of assistance.

2.1 County Settlement Strategy

Chapters 2 and 3 of the draft County Development Plan and Chapter 3 of the City & Environs Draft Plan sets out the population projections for the period 2014 to 2020 and defines a settlement strategy for the City and County within the parameters set out in the Regional Planning Guidelines (RPGs) and the proper planning and sustainable development of the county.  The core strategies set out in the draft plans are consistent with the objectives of the RPGs and ensure that sufficient land will be available for housing over the Plan period.

3.0 Overall Demand for new Housing to 2020

3.1 Population Projections

The revised South East Regional Planning Guidelines were adopted (July, 2010).  This estimated the county’s population at 96,872 in 2010 and allocated a population target of 111,903 for the period to 2022.

Table 1: RPG Population Targets for Kilkenny

	2011(CSO)	2014	2016	2020	2022
Kilkenny County	95,419	99,781	105,598	109,802	111,903
Kilkenny City	24,423	25,200	25,800	27,400	28,200
Ferrybank/Belview	4,787[1]	5287	5412	6,412	6,500

 

Using these RPG figures, a per annum growth rate was derived to obtain approximate figures for the population estimate for the years 2014 and 2020, which were the years used in the 2008 Housing Strategy Review.

Results of Census 2011 have given a population for Kilkenny in 2011 of 95,419 which differs from the projected growth rate as estimated under the RPGS by 2846. Using the same growth rates as predicated by the RPGs for the population it is estimated that the population in Kilkenny will be 99,781 in 2014 with the target population of 109,802 in 2020 as set in the RPGs.

3.2 Housing Demand to 2020

In framing a housing strategy, two classes of housing need must be identified: that which exists at the commencement of the strategy period (accumulated demand) and that which is likely to arise during the period (prospective demand).

Having regard to the 2011 Census figures and applying the Growth rates as estimated by the Regional Planning Guidelines it is anticipated that the population of the County could grow by 10,021[2] persons which would give a population of 109,802 by 2020 (see table 1). The application of an average household composition of 2.96 for rural areas and 2.57 for the city and Ferrybank area of persons per unit gives an estimated housing requirement of approximately 4,353 units during the life time of the plan 2014-2020.

There are sufficient lands proposed for zoning within the Plan to facilitate this housing requirement.

Table 2: New households required

 

	2011 (CSO)	2014	2020	New houses required to cater for growth
Kilkenny County	66,209	69,294	75,990	4,353
Kilkenny City	24,423	25,200	27,400	856
Ferrybank/Belview	4,787	5,287	6,412	437
Total	95,419	99,781	109,802	5646

 

3.3 Assessment of Existing Supply

Housing Completions since 2008 Strategy

The 2008 Strategy estimated a total of 8,282 units would be constructed in the period 2008-2014.  The Annual Housing Statistics Bulletin[3] which presents data on house completions.  Table 3.1 sets out the annual estimates for house completions from the 2008 Strategy compared to the actual level of house completions for the period 2007-2012. 

 

Table 3: House completions in Co. Kilkenny 2008-2012

Year	Projected completions from ’08 Strategy	House completions
2007	1,501	1,426
2008	1,262	984
2009	1,262	335
2010	1,262	297
2011	1,262	273
2012	1,262	131[4]
Total from 2007-2012	7,811	3,446

Sources: 2008 Housing Strategy, DoEHLG House Building and Private Rented Statistics[5]

 

As can be seen, the actual completions fell far short of the projected completions, similarly to what happened on a national scale, with the severe downturn in construction activity post 2008. 

A comparison between national and local house completions is shown graphically below to illustrate the figures.

 

National Completions

 

Source:  Graph from EPA environmental indicators

 

Kilkenny House Completions

 

Source: Data from DoECLG (chart prepared by Planning dept.)

 

As can be seen from the two charts above house completions nationally rose steadily between 1994 and 2007 and then suffered a dramatic fall and this was also reflected in house completions within county Kilkenny.

It is envisaged that construction activity in new housing will remain low for the short term with a very gradual increase in activity over the life of the Plan.

According to 2011 Census figures the total housing stock in County Kilkenny consisted of 33583[6] permanent households.  The number of vacant units was recorded at 3,569 units which equates to a 10.6% vacancy rate.  This compares with a national average of 14.5%.

 

3.0 Estimated Needs for Social and Affordable Houses

Under Section 9 of the Housing Act, 1988, each Local Authority is required to carry out an Assessment of Housing Need every three years, to assess the need for the provision of adequate and suitable housing accommodation for persons who are:

1. homeless
2. travellers
3. living in accommodation that is unfit for human habitation or is materially unsuitable for their adequate housing
4. living in overcrowded accommodation
5. sharing accommodation with another person or persons and who, in the opinion of the housing authority, have a reasonable requirement for separate accommodation
6. young persons leaving institutional care or without family accommodation
7. in need of accommodation for medical or compassionate reasons
8. elderly
9. disabled or handicapped or are, in the opinion of the housing authority, not reasonably able to meet the cost of accommodation which they are occupying or to obtain suitable alternative accommodation.

From the annual Housing report dated 31^st December 2012 there are 2,852 households seeking Social Housing Supports currently within County Kilkenny. The trend since 2008 has shown that there is an increase in demand for social housing supports due to the economic downturn. The cutbacks in the Department of Environment capital allocations has presented challenges for the Housing Authority to deliver more with less resources. RAS and Leasing are the new social housing options to replace the capital construction and acquisitions programme.

 

Housing waiting lists
Year	households
2010	2,635
2011	3,118
2012	2,852

 

From examination of the Housing Needs Assessment 2011 carried out by the Department of Environment which gives a ‘snap-shot’ assessment based on an extract of data from each housing authority in respect of each household that has been approved for social housing support at of 31st March, 2011 there was a gross need 3118 of households indicated. The net need when adjusted for the number of households in need of housing support who are not currently receiving social housing support (those already in local authority, voluntary cooperative or RAS accommodation are excluded) is indicated as 2,329. This represents an increase in demand of 16.5% over the previous assessment in 2008.

 It is noted in the assessment that the methodology used to collect the 2011 data differs substantially from that used in previous years and therefore the 2008 and 2011 figures are not directly comparable.  They do serve to indicate the level of demand.

Table 4: Numbers on Kilkenny Housing List                          

Year	1993	1996	1999	2002	2005	2008	2011	Difference between 2008-2011	% change 2008-2011
	299	231	329	354	473	879	2329	1450	165

 

Table 5 Net Housing Need 2011

Category	Disabled	Elderly	Homeless	Involuntary sharing	Leaving institutional care	Medical or compassionate	Not able to reasonably to afford cost	Overcrowded	Traveller	Unfit accommodation
No.	32	24	60	19	8	8	2022	25	22	9

 

The above table shows that the largest category of need by far was those unable to meet the cost of accommodation – accounting for about two-thirds (86.8%) households, (Note national average is 66.8%), with the next biggest category of need, medical and compassion reasons, accounting for (4.6 %) and this was followed by homeless (2.5%). Older persons and disabled households and those living in overcrowded accommodation respectively account for just over 1 per cent of need, while Traveller families, those living in unfit accommodation and people leaving institutional care each accounted for less than 1% of the county’s net housing need.

The demand for social housing has continued to increase significantly over the period of the 2008 – 2014 Plan. The most recent estimate is that contained in the Housing Report 2012[7] which indicates a demand of 2, 852[8]  compared to 3,118[9] in 2011.Taking the figures of net need as outlined in housing Assessment carried out by the Department an analysis of the above table would indicate that the annual housing waiting list is approximately 468 people per annum. It is reasonable to assume that the demand in social housing is as a result of the increase in persons who cannot afford to purchase their own home.

Income Levels

Incomes of households in need of social housing support are quite low, as might be expected. Table 6 shows that over three-quarters of households seeking social housing supports in Kilkenny (83%) in need of social housing had gross annual incomes of less than €15,000. Most of these households had gross incomes between €10,000 and €15,000. In total, 97.3% of households seeking housing support from Kilkenny local authorities had incomes of less than €20,000.

Table 6 Income Band

Income Band	No of households	%
Below €10,000	641	27.5%
10,001-15,000	1293	55.5%
15,001-20,000	223	9.57%
20,001-25,000	115	4.93%
25,001-30,000	37	1.58%
Over 30,000	20	0.85%
Total	2329

Age Profile

Table 7 illustrates the age profile of those seeking housing support and shows that most of those registered as in need of social housing are aged under 40 years of age (70%)

Table 7 Age Profile of Households seeking social housing supports

Age Range	No of households	%
Up to 25	530	22.7%
26-30	441	18.9%
31-40	659	28.29%
41-50	369	15.8%
51-60	217	9.31%
61-70	83	3.5%
71 and over	30	1.28%
Total	2329

 

Length of Time on Waiting List

Table 8 gives details of the length of time households had applied for social housing support. A little over a third of households (36.7%) had applied to the local authority for housing less than one year ago, and 18% of households had been waiting for social housing for over 3 years.

Table 8: Length of time on Waiting List

Length of Time	No. Of Households	%
Less than 1 year	856	36.7%
Between 1 and 2 years	564	24.21%
Between 2 and 3 years	482	20.6%
Between 3 and 4 years	224	9.6%
More than 4 years	203	8.71%
Total	2329	100

 

Table 9 summarises the structure of the households identified as being in need of social housing support in the 2011 assessment. Over half (54%) of these households are single adult households; nearly a quarter (23%) are family households with one child and a further 9.5% are family households with 2 children. This would indicate that there is a high demand for smaller housing units i.e. 1 and 2 bed units. This reflects the source of demand typically from one- parent families, older persons and single males. It is considered that this trend will continue, and thus smaller units should form a significant proportion of new social units provided.

Table 9: Structure of Households on Housing List

Household structure	No. Of Households	%
Single	1259	54%
Family ( 1&2 adults)	1070	46%
Of which 0 children	178	7.6%
Of which 1 children	563	23%
Of which 2 children	222	9.5%
Of which 3 children	70	3%
Of which 4 + children	37	1.6%

 

Provision of Social and affordable Housing

The Local Authority has a number of methods of meeting the social and affordable demand.

Local Authority Housing Provision

• A total of 287 units were constructed by Kilkenny local authorities from 2007-2011,
• A total of 167 units have been acquired from 2007 to 2011 under Part V, however as can be seen due to the economic downturn and fall off in Planning Applications there have been no part V acquisitions since 2009.
• There were three affordable housing initiatives which were used by Kilkenny County Council during the period of the 2008 Strategy; the sale of affordable houses, shared ownership loans and annuity loans. 
• Under the RAS initiative, Kilkenny County Council leases private dwellings from private property owners. Properties are tenanted, managed and maintained by the local authority for leases of between 10-20 years. 
• Under the Capital Assistance Scheme, a total of 74 units of voluntary housing were constructed in the period 2007-2010.  This is greater than that projected under the Capital Assistance Scheme in 2008. During 2011, 13 units were completed and 15 are currently under construction.

The Role of the Private Rented Sector

The private rented sector continues to play an important role in the provision of accommodation for persons with low incomes who are in receipt of rent subsidy.  The Rental Accommodation Scheme (RAS) is an initiative to cater for the accommodation needs of certain persons in receipt of rent supplement, normally for more than 18 months and who are assessed as having a long-term housing need.  RAS is a collaborative project between the Department of Environment, local authorities, the Department of Social and Family Affairs and the Health Service Executive Community Welfare Service.
 
One of the main features of the scheme is that local authorities in sourcing accommodation for these households make use of the private and voluntary sector and enter into contractual arrangements to secure medium to long-term availability of rented accommodation.  From 2007 to 2010 a total of 463 households were included in the scheme in Kilkenny.  For 2011 there were 153 units provided under this scheme.

 

Summary of Provision

Since 2007, a total of 1324 social and affordable units have been provided.  Table 10 below gives the breakdown of these.

 

Table 10: Total Social and Affordable Housing Provision, Kilkenny Local Authorities 2007-2011

	Housing Source	2007	2008	2009	2010	2011	Total
1	LA construction	53	71	22	27	31	204
2	LA purchase	49	0	0	27	7	83
3	Voluntary Housing Scheme new build	27	34	13	0	13	87
4	Extensions and improvements in lieu of housing	0	0	0	0	0	0
5	Part V Housing Acquisitions	37	39	91	0	0	167
6	Affordable Houses sold	19	42	15	5	2	83
7	Shared ownership transactions completed	6	6	2	0	2......	....16
8	Annuity loans	3	4	2	12	13	34
9	Rental Accommodation Scheme	185	84	106	88	153	616
10	Long-term leasing	0	0	0	26	4	30
11	Unsold Affordable units let	0	0	0	4	0	4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The housing needs of the following categories require specific mention. 

Travellers

The Traveller Accommodation Programme (TAP) 2010-2013 which was adopted by Kilkenny Co. Council and Kilkenny Borough Council in January and February 2009 respectively outlines the key strategic areas for provision of Traveller accommodation over this five year period.

A review of the programme has been undertaken as directed by the Minister and in accordance with Section 17 (1) (a) of the Housing (Traveller Accommodation) Act, 1998.

The annual count of Traveller families and their accommodation position was carried out on November 30^th 2012. Table 11 gives an overview of results of the annual counts from 2004 to 2012.

Table 11: Results of Annual Counts of Traveller families from 2004-2012
Year	‘04	‘05	‘06	‘07	‘08	‘09	‘10	‘11	‘12
Total Number of Families	92	98	106	122	122	137	155	155	177
Accommodation Type
Standard Lettings	35	34	38	38	41	43	42	38	44
Group Housing	0	0	5	8	8	8	8	7	8
Private Rented Accommodation	6	8	11	15	23	38	58	35	46
RAS	----	----	0	0	0	3	4	10	9
Roadside	5	3	8	11	4	2	4	1	3

 

The figures outlined above are not an exhaustive list of the accommodation types included in the Annual Count e.g. sharing accommodation with family.

The review of the traveller accommodation programme indicates that Kilkenny Local Authorities are on target in delivering the number of accommodation units proposed in the programme.

Homeless

Services to homeless people in Kilkenny City and County are currently provided by Kilkenny Homeless Action Team (KHAT). This interagency team comprising of both the statutory and NGO sector was established in June 2007 with the aim of “developing and enhancing the delivery of Homeless Services in Kilkenny in an integrated, efficient and effective way”.  The South East Homelessness Action Plan May 2010 – May 2013 was published in 2010.  This sets out the Action Plan for KHAT to 2013.    In 2007 there were a total of 138 homeless referrals (121 homeless persons when one takes 17 repeat referrals into account).  In 2008 a total of 169 individuals/families were offered assistance by Kilkenny Local Authorities Homeless Services.  In 2009 this figure was 173, in 2010 it was 178 in 2011 it was 171, and, in 2012 it was 159.

 

Disposable Income 

Disposable income is defined as follows:

Total income minus Current taxes on income (i.e. Income taxes, other current taxes) minus Social insurance contributions (i.e. Employers’, employees’, self-employed, etc.).  The average disposable income for Kilkenny is derived from CSO regional incomes data. At State level average disposable income per person declined by €1,883 or 8.1 per cent. A similar picture emerged at regional level with all regions experiencing declines between 2008 and2009. Disposable income in The South East declined by (-9.5%).  Kilkenny experienced a similar decline from 2008 to 2009, see table 12.

Table 12: Comparison of Kilkenny and State average disposable income 2004-2009

Year	2004	2005	2006	2007	2008	2009	2010
State	18,614	19,827	20,493	21,278	22,413	20,695		19,318
County Kilkenny	16,265	17,550	18,910	20,037	21,037	18,994	17,278
Kilkenny % state	87.4	88.5	92.3	94.2	93.9	91.8	89.4

Source: CSO, County Incomes and Regional GDP 2010 Feb 2013

Disposable income and Economic outlook

The ESRI provide data and forecast economic trends for the country regularly in their Quarterly Economic Commentaries.  This provides information to obtain an update of disposable income levels to the present and to forecast the likely trends to 2015.  In the Quarterly Economic Commentary of Autumn 2011, it is stated that assuming that the remainder of the fiscal adjustment will be mainly undertaken by tax increases and charges for services, the implications are that households on average would face a reduction of €7,000 in household income by 2015. Very roughly the amounts year‐by‐year are €1,850 for each of 2012, 2013 and 2014 reducing to €1,450 in 2015. This would represent a reduction in disposable income of approximately 7‐8 per cent by 2015. This compares with the 10 per cent decline in disposable income experienced between 2008 and 2010. [10]

Domestic demand remains very weak, and growth in GNP, which is a better measure of Ireland's economic performance than GDP, is expected to fall marginally in 2012, down 0.2 per cent[11].

As the Government attempts to resolve its budgetary shortcomings it is clear that on the whole, household disposable income in Kilkenny has declined from its 2008 peak and is predicted to decline further along National percentages until 2015.

Unemployment

Unemployment rates were also examined as an indicator of trends in average disposable household income.  According to most forecasts, unemployment is set to remain above 14% in 2012, the Live Register seems set to remain about 450,000.

According to the ERSI Autumn 2012 Quarter Economic Quarterly unemployment rate is expected to be 14.8 %.

The number of persons on the Live Register has remained within a relatively narrow range for almost three years now. Looking through short- term volatility, this corroborates the view that some degree of stabilisation is evident in the labour market, despite sectoral divergences. A key feature of this stabilisation, however, is the continued fall in the labour force, with net outward migration lessening the impact of falling employment on headline numbers.[12]

The CSO Live register January 2012 states that unemployment in the south east is at 20,271 and for Kilkenny is 7,552. The rate of unemployment will impact on the level of people on Kilkenny County Councils’ housing list.

Interest Rates

The average interest rate on a new mortgage has risen through 2011, according to Central Bank data, and looks set to average around 3.25% over the year as a whole, which would be negative for affordability.

For new borrowers the choice is between a fixed rate or a standard variable rate, and the average rate for new mortgage loans has moved higher during 2011 according to the Central Bank, from 3.0% in January to 3.50% in September.  Interest rates increased further in 2012 and are now between 4 and 5 percent depending on the financial institution.  Increased interest rates have a negative impact on affordability.[13]

 

House Prices

The last Strategy dealt with an increase in house prices of 81% from 2001 to 2006.  House prices were continuing to increase, with an increase of 10.6% in the period 2005-2006. The housing strategy review which was carried out in March 2011 showed the rapid fall in house prices, see Table 13. The CSO statistics state that the national house index is 47% lower than its highest level in 2007. Each year the Department of the Environment publishes the average figures for house prices for both new and second hand houses for the entire country. These figures are derived from data supplied by the mortgage lending agencies on loans approved by them rather than loans paid.  In comparing house prices figures from one period to another, account should be taken of the fact that changes in the mix of houses (including apartments) will affect the average figures.

Table 13: House prices 2006-2011
Year	Average New House Price (DoEHLG)
2006	305,637
2007	322,634
2008	305,269
2009	242,033
2010	228,268
2011	230,303

Sources: DoEHLG, 2011[14]

 

Prices for houses in each county are published each year by the Sunday Times in the Home Ireland Property Price Guide.  This survey is based on opinions of local estate agents, who are asked to value property types based solely on a sale price which they believe they can achieve.  For this, they value an average example for each location.  Therefore this is an opinion based survey and not scientific in nature.  House prices as published for County Kilkenny are set out in Table 14.   

Table 14: House prices in Co. Kilkenny by year

Year (Publication date)	Average House Price New home	Average House Price Second Hand home	Average for all homes
2007 (28.1.2007)	310,000	295,000	302,500
2008 (27.1.2008)	315,000	335,666	325,333
2009 (25.1.2009)	280,000	285,000	282,500
2010 (31.1.2010)	205,000	200,000	202,500
2011 (6.2.2011)	250,000	200,000	225,000
2012 (15.01.2012)	153,000	160,000	156,500

Source: Sunday Times Price Guide, 2007-2012 Note 2012 averages based on 3 bed townhouse, 3 bed semi d and 4 bed in a town.

As can be seen, prices have decreased substantially in Kilkenny from the 2007 figures to the present.

 

Mortgage lending

In 2011, banks issued about 13,000 mortgages. In 2006, the same banks gave out over 200,000 mortgages, meaning we've seen a fall in lending of almost 95%. Given that the property market in any developed economy is inextricably linked to the mortgage market, it's no surprise that prices have fallen significantly.

Mortgage Lending for House Purchase

Year         No. of Mortgages                          Average Mortgage (€000)                            Total Market (€bn)

2005                       110,500                                 200                                                                         24.4

2006                       110,800                                 251                                                                         27.8

2007                       84,200                                   266                                                                         22.5

2008                       53,600                                   270                                                                         14.5

2009                       25,100                                   232                                                                         5.8

2010                       18,300                                   207                                                                         3.8

2011(e)                 11,000                                   190                                                                         2.1

IBF/PWC and ERU estimates[15]

 

Lenders are imposing tougher conditions before they will grant mortgages.  Most banks are now demanding larger deposits and more stringent stress test of applicants.

Loan to Value Ratio

At the height of the housing market 100% loans were available for first time buyers, this favoured those on lower incomes who were not in a position to accumulate a deposit for a home loan that would reduce the LTV. Mortgage lenders are offering lower interest rates for larger lump sum deposits. Therefore an accumulation of a significant lump sum is necessary to secure a mortgage: this has implications for those who are not in a position to accumulate such a deposit.

The proportion of new lending done at an LTV of more than 90% remained below 2%, in 2011. New lending with a combination of high LTV and high income multiple has also been unchanged throughout this year, accounting for less than 1% of new lending.

Affordability Analysis

A Housing Strategy bases its affordability analysis on a number of different factors.  The 2008 Strategy included a detailed affordability analysis as set out in the Model Housing Strategy[16] document, employing an annuity formula to calculate affordability.  The key variables used in any annuity formula are household income, house prices and mortgage details. 

While the cost of housing (both new and second-hand homes) has fallen significantly and are still falling, new mortgages must be accompanied by larger deposits and will be subject to variable and increasing interest rates along with decreasing disposable incomes.  On balance therefore it can be said that affordability has decreased in the period from 2008 to 2012.

Therefore the Part V objective of the 2008 – 2014 Development Plan as prescribed for by Section 95 of the Planning and Development Act shall be retained.  This requires that 20% of the land zoned in the Plan for residential use or for a mixture of residential and other uses shall be reserved for the provision of social and affordable housing.

Objectives:

1. To require 20% of the land zoned for residential use, or for a mixture of residential and other uses, be made available for the provision of social and affordable housing.
2. To require that a mixture of residential unit types and sizes are developed to reasonably match the requirements of different categories of households within the city and county.

 

It is the view of the Planning Department that the requirements of Part V of the Planning and Development Act, 2000 in relation to any particular site should be incorporated into any development proposal at an early stage in the development process. The Council will therefore require housing developers to whom the 20% requirement will apply to discuss the likely terms of Part V agreements at pre-planning consultations. Both the Council and the developer would thus have a common understanding of the nature of the likely agreement before detailed designs are prepared for any planning application.

Conditions attached to planning permissions for residential development will require developers to enter into an agreement with the Council in relation to the provision of social and affordable housing in accordance with the housing strategy.

The various options for compliance are set down in the Planning and Development (Amendment) Act 2002. The following preferred options are available to satisfy the requirements of the housing strategy, in decreasing order of preference –

• The payment of a monetary contribution
• The transfer of a portion of the site subject to the planning application,
• The transfer of completed dwellings elsewhere,
• The transfer of fully or partially serviced sites on the site which will enable the Council to provide the appropriate number of units thereon,
• The transfer of serviced sites at another location,
• The transfer of the required number of completed dwellings on the site,
• The transfer of land at another location,

An agreement may provide for a combination of the above.

The Council will continue to meet social and affordable housing needs in the towns, villages and rural areas of the county in a balanced way avoiding overconcentration in any one particular area. The Council in its house building programme will place an emphasis on well-designed and integrated schemes appropriate to the scale and character of the area.

Role of the Voluntary Housing sector

The Council recognises the important role played by the voluntary sector in meeting social housing need and will support and facilitate the expansion of that role.

The Council will seek to meet the increased demand for social and affordable housing in a number of ways as a housing authority through,

• RAS scheme
• Affordable housing/joint venture schemes,
• the Voluntary Housing Sector,
• long term leasing
• the capital assistance scheme,
• the disabled persons grant,
• the essential repairs grant and other measures, and
• the Homeless Forum initiative.
• the local authority’s house building programme,
• the sale of sites scheme,

Conclusion

The provision of decent housing for all has long been a central aim of public policy. The general strategy for realising this aim is that those who can afford to do so should provide housing for themselves, and those unable to do so from their own resources should have access to social housing or to income support to secure and to retain private housing. The overall aim of housing policy is to “enable every household to have available an affordable dwelling of good quality, suited to its needs, in a good environment and as far as possible at the tenure of its choice”.

The evolution and development of policy must take place against the backdrop of a tightening fiscal situation in which there will continue to be a strong emphasis on achieving value for money. To this end the use of the Rental Accommodation Scheme (RAS) and the long-term leasing scheme will provide a much greater part of social housing provision than in the past – with direct provision/build by the Local Authority contributing substantially less.

The statutory triennial Assessment of Housing Need was carried out in March 2011. The net social housing need in Kilkenny County Council at 31st March 2011 was 2329. It should be noted that 3,392 applications (79.49% of net need) are applicants living in private rented accommodation, adequate to meet their needs, and are on the Councils list solely because of “rent affordability issues”. In the current difficult economic climate, the ability of the State to support major capital expenditure on housing is severely limited in the short and medium term. The national triennial Housing Needs Assessment will be changed to an annual assessment during the course of this Strategy. This change will contribute significantly to assisting in a more accurate trend analysis and forecasting. The data obtained will also be of major assistance in reviewing and making timely adjustment, if necessary, to this Strategy.

There is a very limited demand at present for affordable homes and this is expected to continue over the early years of the Development Plan. As the downward price correction continues in the private housing market, the need for Kilkenny County Council to actively participate in the affordable housing business is receding. To this end Kilkenny County Council commenced principally the payment of a financial contribution by developers in lieu of providing physical units. 

The Council will utilise the full range of options available to satisfy Part V requirements to provide social and affordable homes – each application will be considered on an individual basis and the actual mechanism used to satisfy the Part V requirement will be the one that best facilitates the development of strong, vibrant, mixed-tenure communities.