CHARITIES WORKING IN the housing and homelessness sector have sharply criticised the Government for doing too little on housing in Budget 2025.

The Simon Communities’ executive director Wayne Stanley said it was “extraordinary” that so much money could be spent and “so little done for those at the sharpest end of the housing crisis”.

He said the 10,000 social homes promised in the budget was “simply insufficient” as a target.

“We see another budget where the rhetoric of homelessness being a ‘top priority’ is not in evidence,” he said.

Focus Ireland Director of Advocacy Mike Allen: “The housing measures continued to focus on helping people deal with the cost of housing failure rather than tackle the failure itself.”

He said measures to invest in the Land Development Agency, in his view, represent that the Government are moving away is focus from social housing in favour of affordable housing instead.

He reasoned that this measure would not benefit those who are currently homeless. He added:

“The problem with a give-away budget is that what it gives away is the resources we need to provide lasting solutions.”

Sinn Féin TD and party finance spokesperson Pearse Doherty said, in response to the Budget in the Dáil today: “This is not a giveaway budget. This is a give-up-on-housing budget.”

He said that the Government were “raising the white flag” on housing by not committing a “single social or affordable house more” to its targets.

He said that it was “shocking” for Government not to increase its targets and claimed it was insulting to those in need of a home.

Cautious welcome

Threshold, a homelessness prevention charity, expressed concern at a lack of additional funding to boost the amounts available through the Housing Assistance Payments scheme.

While it welcomed the measures that were included in the budget, it said the Government could’ve gone further.

These social housing welfare payments were surpassed by rents in the private sector “many years ago”, leaving HAP recipients “often having to make up the shortfall with money they do not have”, Threshold said.

It added that an additional 8,400 people may need to avail of HAP in 2025.

DePaul also cautiously welcomed the proposals but said it was “disappointed at the lack of any significant increase in the commitment to meet the Housing Commissions call for an increase of 20% in low cost housing”.

Minister responds

The Journal put these criticisms from housing charities to the Minister for Housing Darragh O’Brien at a press conference earlier today.

The Minister said he had “immense regard and respect” for the NGOs and charities who help to prevent homelessness in Ireland and accepted that there was still more than needed to be done to help those facing homelessness.

He pointed to figures from the second quarter of this year indicating 630 families exited emergency accommodation. He said that he expects Government to reach its social housing targets and exceed affordable housing targets this year.

He added: “Major challenges to remain – I’ve been very honest with people. And Simon [Communities] will know that, and the [other] NGOs know that too. But we’ve been able to make real progress over the last few years working with our NGO partners.”

Included in the housing measures in Budget 2025, the Help-To-Buy scheme was extended until 2029 after it was due to conclude at the end of next year. Rent tax credits were increased to €1,000 per tenant andwill be back dated to this year.

A new, third rate of stamp duty, applicable to residential property valued above €1.5 million, will be set at 6% with effect from midnight tonight. The existing rate of 1% will continue to apply to homes valued up to €1 million, and 2% on values over €1 million.

A higher rate of stamp duty on bulk purchasing of houses also increased from 10% to 15%, with immediate effect. There was also an increase to the vacant homes tax where property owners will now have to pay seven-times the local property tax rate.

Additional reporting by Christina Finn