Sir, – The willingness of the Government to spend hundreds of millions on rent subsidies – paying landlords to provide for social need – is even more shocking than noted by Fintan O'Toole ("Snobbery is at the root of the housing crisis", Opinion & Analysis, October 20th).
Your columnist points out that €7.8 million was spent on rent supplement in 1990; however, his calculation of €535 million in 2018 is some way out. While the final spend might be less than expected, €729.5 million, equivalent to €2 million per day, was provided this year to the gamut of rent subsidy programmes. Last week’s budget announcements for 2019 have increased these further to €844.4 million, €2.3 million per day. By 2021 it is likely we will have tipped the billion euro mark.
A 2006 value for money report by the Comptroller & Auditor General on rent supplement questioned the growing provision of long-term housing need through private landlords.
He declared that the decision to either use rent supplementation or build local authority housing was “analogous to the choice households with sufficient income may make in choosing to rent or buy”.
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Today, people stuck renting – those with insufficient incomes to buy – know well that it would be cheaper to pay a mortgage than continue paying rent. The same can be said for the State.
While several reports since 2006 have suggested that leasing, and the use of the housing assistance payment (HAP), were more or as cost effective, these claims can no longer be made.
The Department of Public Expenditure and Reform's own report, Current and Capital Expenditure on Social Housing Delivery Mechanisms (July 2018), ultimately comes to this conclusion too. It points out that when "... prices within the general housing market are higher" it is more cost effective to construct than deliver units through mechanisms such as HAP and leasing. In the major urban areas, this has been the reality for some time.
This continued provision of public housing through private landlords, with public money, is not only more expensive, it has not added a single unit to the public housing stock and needs to stop.
Now it is time for a public housing building boom. – Yours, etc,
EOIN CARROLL,
Deputy Director,
The Jesuit Centre
for Faith and Justice,
Gardiner Street Upper,
Dublin 1.
Sir, – Fintan O’Toole’s article “Snobbery is at the root of the housing crisis” raises a very important issue and not just about housing.
Sadly snobbery is alive and well in society and it is good to be reminded of that fact. Education in the broadest sense and good example is the first step to addressing it.
Attitudinal change takes time.
Objections to proposed locations of social housing are often led by elected representatives and this gives oxygen to snobbery and social exclusion.
Your columnist writes: “The way to avoid turning public housing estates into ghettoes is not to stop building them. It is to make social housing available to a much wider range of people and to allocate it in a way that ensures that the communities that inhabit it are varied”
It is plain to see the wisdom of those words. Surely those in a position of responsibility to address the housing problem should reflect on his words and lead by example. It would benefit the wider society. – Yours, etc,
ALICE LEAHY,
Director of Services,
Alice Leahy Trust,
Bride Road,
Dublin 8.