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Irish Examiner
12 hours ago
- Business
- Irish Examiner
Residential Tenancies Board's new ICT system €5.2m over budget
A new ICT system for the Residential Tenancies Board (RTB) ran €5.2m over budget and was delivered 29 months late, without all planned functions. The online tenancy registration system was initially budgeted at €3.3m, and came into use in November 2021, but it reached an overall cost of €8.5m, bringing it over budget by 157%. After the RTB360 system went live, the RTB noted in its annual report that the cost had reached €7.3m but stated that "no further costs are expected for this phase". However, the commencement of annual tenancy registration in April 2022 saw "significant performance failures" arise for users and further development was required through 2023, with the operation issues resolved towards the end of the year. Initially, the associated costs for the further development work was estimated at just over €1.1m. Temporary pause As a result of these system failures, a temporary pause in the automatic charging of late fees was introduced in November 2022 and remained in place until March 1, 2024. During 2023, the RTB refunded €1.67m in late fees, while the data on fees refunded in 2024 has not been published. In the 2023 annual report, it is also noted that the original scope for the system included system requirements for handling disputes and enforcement, which were not included. The RTB has since "adopted a new approach" to deliver a dispute-resolution system using the ServiceNow platform, with a pilot beginning testing last month. The first phase of this new system will be delivered within one year and has cost less than €1m to date, according to an RTB spokesperson. In light of the drastic cost overrun and delay in delivery, the RTB board commissioned an independent external review of the RTB360 project. A spokesperson told the Irish Examiner that it had "received legal advice that currently prevents us from sharing this report" but said recommendations from the review have been implemented. Rory Hearne questioned whether State agencies require more support for ICT projects. Picture: PA Social Democrats TD Rory Hearne submitted a parliamentary question to housing minister James Browne regarding RTB360 but was told the minister has "no official responsibility to Dáil Éireann for this matter". As the RTB is a State body, Mr Hearne said Mr Browne should be taking responsibility to respond, just as other ministers must when it comes to State agencies being held accountable. The issues raised by RTB360 and other ICT projects which have resulted in significant overspend beg the question as to whether State agencies require more support and resources when such projects are being undertaken, Mr Hearne added. Read More 50th anniversary of Seamus Heaney's landmark collection on Troubles to be marked
The Journal
3 days ago
- Politics
- The Journal
Record 15,580 people in emergency accommodation last month, including 4,775 children
THE NUMBER OF people in Ireland living in emergency accommodation stood at 15,580 in April. The figure includes 4,775 children – 100 more than last month. This doesn't account for those rough sleeping, refugees, asylum seekers, individuals in domestic violence shelters, or those experiencing 'hidden homelessness', such as sleeping in cars, on couches, or other unsuitable living conditions. The figures are taken from the week of 21 April. Of the adults accessing emergency accommodation, 7,652 were in Co Dublin. Some 650 adults were in Cork, 496 were in Limerick, and 249 were in Galway. There were 3,559 children living in emergency accommodation in Dublin. There were 230 in the West (Galway, Mayo and Roscommon), and 219 in the Mid-East (Kildare, Meath and Wicklow). Advertisement 'Possible to end homelessness' Mike Allen, Director of Advocacy at Focus Ireland, said the number of children homeless is 'unacceptable'. 'This should be a carefree time for children as they look forward to school holidays and the longer evenings. 'Instead of this, the harsh reality for many children who are homeless is that they are studying for exams while living in family hubs or hotels without anywhere suitable to even do their homework.' He said the government's new housing plan, which is due to be published in July, must deliver a 'radical policy shift' to meet the growing needs across society. 'It is possible to end homelessness, and we must all learn the lessons from what is working and has worked in the past and so more of the same.' Rory Hearne TD, housing spokesperson for the Social Democrats, says the homelessness figures are a 'shameful milestone' and a direct result of government policy. 'Failing to take an interventionist approach in coordinating a national emergency response to homelessness across all local authorities, destroying the Tenant in Situ Scheme, and threatening to end rent caps have collectively pushed more and more people into homelessness,' he said. Hearne called them 'intolerable and excusable' failures. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Times
6 days ago
- Business
- Irish Times
Minister insists no ‘free pass' for builders who get planning permission extensions
Builders will not get a 'free pass' and there is a 'use it or lose it' provision in Government proposals to allow for planning permission extensions for delayed housing developments, Minister for Housing James Browne has insisted. Under the proposals for emergency legislation, approved by Cabinet on Tuesday, developers would be able to seek extensions to planning permissions in cases where building work has been delayed by judicial review proceedings or access to finance or infrastructure constraints. The measure is a bid to activate developments such as large-scale apartments that might otherwise go beyond their permission timeline and lapse. Mr Browne said almost 15,800 residential units have gone through judicial review and got the go ahead to proceed but have had the duration of their planning permission eroded as a result. READ MORE He said he believes that while judicial reviews are a legitimate part of Ireland's legal process, they have 'been weaponised by some people' in the hope that if a project is delayed long enough it will fail. Minister of State with responsibility for planning John Cummins said allowing extensions is a 'practical and common sense measure to ensure that sufficient time is given to activate planning permissions for much needed housing across the country'. Social Democrats housing spokesman Rory Hearne responded to the Government's plans by saying he is concerned that the measure will 'incentivise land and property speculation rather than actually getting homes built'. He added: 'We believe there should be a use it or lose it approach to planning permission rather than this extension.' Mr Browne later said there is a 'use it or lose it' element, with a requirement that developments commence within 18 months of the legislation passing. He said: 'This is not a free pass for people who have planning permissions.' Mr Browne said commencement notices are 'a legal step' where developers 'must notify the local authority that they're actually about to start that work' and that 'you actually should be putting shovels in the ground'. He also said: 'once you sign a commencement, it's actually very difficult to withdraw it'. He added: 'I'd expect developers here to act in good faith. If they don't commence, they won't get the extension of time.' He confirmed at a press conference that there will be no penalties for someone that gets the extension but does not develop the land. Mr Browne said bringing in penalties would be 'very challenging' legally given protections relating to land under the Constitution but also said this would be kept under review. The intention is for the legislation to be completed before the Dáil summer recess.
RTÉ News
7 days ago
- Politics
- RTÉ News
Cabinet not expected to discuss rent pressure zone rules
The Cabinet is not expected to discuss proposals that could potentially change the rules around rent pressure zones this week. The matter will not be examined by Government party leaders tonight either, amid a growing sense that any changes in this area will require detailed work. The Housing Agency recently delivered a report on rent pressure zones to Minister for Housing James Browne. The legislation underpinning the current system expires at the end of the year and it is currently under review. However, Social Democrats housing spokesperson Rory Hearne warned there would be fireworks if renters' protections were removed. He was speaking at the launch of a 'Raise the Roof' protest in Leinster House, which is being coordinated by Sinn Féin, Labour, People Before Profit-Solidarity and the Social Democrats. The parties will put down a joint motion on housing on 17 June and are calling for a demonstration outside Leinster House at 6 o'clock that evening. Sinn Féin's Eoin Ó Broin said the biggest offenders when it comes to the housing crisis are the Government. "Out biggest problem is that the State is not investing enough and not delivering social, affordable rental and affordable purchase homes faster," he said. People Before Profit-Solidarity TD Paul Murphy warned that if things continue on their current path there will be more than 20,000 people in emergency accommodation by the time of the next election. Labour's Marie Sherlock accused the Government of going backwards rather than forwards with regards to housing. "That is why people must come out for that Raise the Roof protest in June, because we have to make it very clear to Government that we cannot continue, we have to have a radical reset," she said. It is expected that a major forum involving housing bodies, advocacy groups, charities and builders will be convened by the Housing Minister next month. This meeting will then feed into the revised Housing for All strategy, which is expected to be published in July.
The Journal
26-05-2025
- Business
- The Journal
Calls for reintroduction of 100% mortgages for first time buyers - but politicians urge caution
POLITICAL PARTY INDEPENDENT Ireland has called for banks to reintroduce 100% mortgages to the market to help renters and young people buy their first home. It comes as the product, synonymous with the Celtic Tiger era, has increased in popularity in the UK. In Ireland, however, 100% and 95% mortgages are not available under Central Bank lending rules that came into force in 2015. Last week, another lender in the UK introduced a 100% mortgage to the market. It is not available for new build properties and comes with an initial higher interest rate (5.99% compared to an average of about 4%). The Journal contacted housing experts and the housing spokespeople of all of Ireland's main political parties to get their views on whether products of this kind should be reintroduced in a bid to help first-time buyers. Independent Ireland was the only party to call for their reintroduction. Party leader and TD Michael Collins told The Journal : 'We are not advocating for a return to the reckless lending that preceded the financial crisis. However, it is equally irresponsible to ignore the reality that people are spending €2,000 or more each month in rent, yet cannot qualify for a mortgage that would cost them far less. 'There is a clear need for targeted, responsible mortgage products that reflect today's economic realities.' Cork South West TD Michael Collins Alamy Alamy He pointed to the rise in availability of the product in the UK and said that with appropriate affordability checks and regulatory safeguards, 100% mortgages can be a 'valuable tool in addressing the housing crisis'. His party colleague, Cork North Central TD Ken O'Flynn added: 'It defies logic that someone can be trusted to pay €2,500 to a landlord but not be considered eligible to repay €1,800 to a mortgage lender. 'A properly structured 100% mortgage could turn long-term renters into homeowners and provide dignity and stability to countless families.' 'Absolute disaster' Other politicians contacted by The Journal , however, urged caution. Advertisement Sinn Féin's housing spokesperson Eoin Ó Broin said there should be 'no return to the high-risk Celtic Tiger lending of the past'. He added that mortgages of this type would not help increase housing supply and would only add to house price inflation. Similarly, Social Democrats housing spokesperson Rory Hearne said 100% mortgages were an 'absolute disaster' during the Celtic Tiger in terms of contributing to house price inflation. 'We are absolutely in the same upward spiral as we were in the Celtic Tiger… and adding more credit into that in order to enable people to pay higher prices will, in the context of restricted supply, just add to higher house prices,' he said. Hearne said what first-time buyers really need is State-provided affordable housing to rent or buy, on a 'massive scale'. Rory Hearne, Social Democrats TD for Dublin North-West. Alamy Alamy This sentiment was shared by People Before Profit TD Paul Murphy, who warned against repeating 'the mistakes of the Celtic Tiger' and Labour's housing spokesperson TD Conor Sheehan, who said he was 'deeply uneasy' about the prospect of their return. 'With a 100% mortgage, the buyer does not have any equity in the property and if the housing market contracts, they could find themselves in negative equity…The higher interest rate offered by these loans will also make them more expensive over the longer term,' he said. Shane Cullen, head of mortgages at Ask Paul (Fairstone), also explained how limited a homeowner's options are if they avail of a 100% mortgage and house prices begin to fall. 'The main issue you have here is that the buyer is at 0% equity at the outset. Now while this is okay in a time where there's property price inflation, a dip in the market can have massive consequences for the buyer, throwing them into negative equity,' he said. 'They may want to sell due to personal or financial reasons and not be in a position to do so as they're in negative equity. House prices can take years to recover as we saw in 2008 and led to the Central Bank of Ireland measures being introduced to protect consumers and encourage more responsible lending.' What about a 95% mortgage for first-time buyers? 'Even at 95%, you're still leaving buyers extremely vulnerable to a dip in the market,' Cullen said. He argued that opening up the first-time buyer schemes to second-hand properties would be a more sensible approach, as consumers would be better protected from a crash. 'Returning to 95 or 100% mortgages will be great for increasing the lenders' bottom line, and while it looks as though they're doing it to help consumers, there is no consideration for the associated risks attached.' Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
