Budget 2025 Ask #5 - Investing in Housing to Build Communities for All

As housing precarity continues to rise in Ireland, the role of sector organisations in providing social housing, tenancy protection, and homelessness supports has become increasingly vital. With more households needing assistance, the strain on these services is growing. In 2023, a staggering 58,824 households were on Local Authority waiting lists for social housing, with over 12,626 households (more than 1 in 5) waiting for more than seven years.

A Growing Crisis for Older Adults and Low-Income Workers

One concerning trend is the increasing housing insecurity among older adults. Nearly 7,000 households on the waiting lists are headed by someone aged 60 or older, as noted in a report by ALONE and Threshold. This reflects the precarious nature of housing for older adults, many of whom live on fixed incomes and face limited options for affordable, appropriate housing.

Alarmingly, 12,500 households on the waiting list derive their income solely from employment, raising concerns about the growing challenge of housing affordability, even for those who are working. The reliance on the Private Rented Sector (PRS), where 23,500 households are currently housed, is problematic as it is unsuited to meet the long-term needs of those who should qualify for social housing. Moreover, 8,000 households on the waiting list are experiencing homelessness, marking an 18.6% increase compared to the previous year.

A key element of the solution involves the implementation of recommendations from the Housing Commission’s recent report. Involving AHBs in this process is essential to ensure their expertise is used to improve the social housing system. As homelessness continues to rise, with 14,429 people accessing emergency accommodation in July 2024, including more than 4,400 children, more targeted support is urgently needed.

To address this escalating crisis, Budget 2025 should allocate additional capital support for Approved Housing Bodies (AHBs), which play a crucial role in delivering social housing. Increasing investment in AHBs would help ensure a steady supply of affordable housing units and reduce the long waiting lists plaguing the system.

Tenancy Protection and Homelessness Prevention

Organisations supporting tenant protection and homelessness prevention are facing a daunting task, as highlighted in Focus Ireland’s 2019 report, which found that 68% of families experiencing homelessness had come from the private rented sector. To combat this, Budget 2025 should invest €20 million in homelessness prevention, tenancy sustainment, and tenant protection services. These investments can provide vital lifelines to families at risk of eviction or those already experiencing housing precarity.

Accommodation for Older People and People with Disabilities

In addition to general social housing needs, sector organisations provide specialised support for older people, people with disabilities, and other vulnerable groups, such as Travellers and international protection applicants. Housing for older adults and people with disabilities often requires specific adaptations to allow them to live independently and with dignity. However, despite recent increases in spending on housing adaptation grants, the funding levels have only returned to 2010 levels, leaving many years of unmet need.

With an aging population and increasing demands for accessible housing, Budget 2025 should increase funding for organisations providing these adaptations and supports. This would ensure that older adults and those with disabilities can continue living within their communities rather than being forced into more costly institutional care.

Traveller-Specific Accommodation

Traveller communities face unique challenges in securing safe, adequate housing. Despite allocations for Traveller-specific accommodation, a third of the funding allocated between 2008 and 2018 went unspent. This persistent underutilisation of resources reflects a breakdown in communication and collaboration between Local Authorities and organisations serving Traveller communities.

In recent years, steps have been taken to improve the disbursement process for Traveller accommodation. However, ongoing underfunding and delays mean many Travellers remain without adequate housing. Budget 2025 should fully resource this process, ensuring the funding is effectively drawn down and utilised to provide safe, culturally appropriate accommodation for Traveller families.

International Protection Applicants and Direct Provision

After more than two decades of Direct Provision, Ireland is beginning to shift towards more humane approaches to accommodating international protection applicants. The government’s White Paper on ending Direct Provision was a welcome development, but the changing international landscape — including the surge in refugees due to the Russian invasion of Ukraine — has changed the landscape.

While many organisations welcomed the Temporary Protection Directive as a potential blueprint for a new approach to asylum, much of the initial support has been reduced. To continue moving away from Direct Provision, Budget 2025 should increase funding for organisations working with marginalised communities to secure safe, appropriate accommodation for international protection applicants.

Addressing Affordability in Housing

The rising cost of housing is one of the biggest issues facing both those in need of housing supports and the workers within the housing sector. The cost of purchasing a home has risen by 4.4% in the year to December 2023, and rent has increased by 11% nationally. This is creating affordability challenges for both low-income households and middle-income earners, with wages failing to keep pace with skyrocketing housing costs.

According to a report published by the Parliamentary Budget Office, between 2013 and 2022, wages increased by just 27%, while house prices jumped by 75% and rents soared by over 90%. This lack of affordability is pushing more people into precarious living situations and placing additional pressure on the social housing system. The housing sector itself is also feeling the pinch, as the high cost of living makes it difficult to recruit and retain staff, especially in urban areas where housing is least affordable.

Need for Investment

The total investment needed to address the multifaceted housing crisis in Ireland is substantial. Budget 2025 should allocate €2.6 billion to support AHBs, expand homelessness prevention services, increase adaptation funding for older people and those with disabilities, and secure affordable housing for vulnerable communities. With the right investment, Ireland can begin to address its deepening housing crisis and create stable, thriving communities.

The Wheel’s Pre-Budget 2025 submission is available HERE