Inflation turns Minister’s housing announcement into a real time cut
Inflation turns Minister’s housing announcement into a real time cut - The Labour Party
- 2026 Housing Acquisitions Programme represents a cut in real terms
- We need a less restrictive circular immediately – Councils need the power to spend this money.
Labour’s housing spokesperson Conor Sheehan TD has said that the Government’s announcement of €373 million under the 2026 Second Hand Social Housing Acquisitions Programme represents a real terms cut that will leave councils short of funds and families at risk. Responding to the Minister’s announcement today, Deputy Sheehan said that when rising house prices and last year’s reductions are taken into account, the programme falls well below what is needed. He called on Government to immediately revise the restrictive circular governing acquisitions and to fully fund and expand the Tenant in Situ scheme for 2026.
Deputy Sheehan said:
“The Minister has announced €373 million for second hand social housing acquisitions with much fanfare, but the hard figures tell a very different story. In 2024, €422.9 million was spent. In 2025, that fell sharply to €290 million. Now we are told that €373 million will be available for 2026. Even before you factor in inflation, that does not restore funding to 2024 levels. When you take into account house price inflation of 7.6 percent in 2024 and 8.1 percent in 2025, this is a clear real term cut.
“It is also important to note that while €320 million was allocated last year, only €290 million could actually be drawn down. That gap speaks volumes. It shows how Government restrictions and design flaws prevented councils from accessing the full funding envelope. Announcing money is one thing. Making it usable in practice is another.
“This is not a step forward. It is an attempt to claw back ground that was lost after a savage reduction last year. Councils are operating in a market where prices continue to rise. Every euro now buys less than it did two years ago. Without a serious uplift in funding and rules that allow flexibility, local authorities will run out of money before they meet the scale of need in their areas.
“On top of that, the restrictive circular introduced by Government tied the hands of local authorities and narrowed the scope of what they could purchase. Councils need the power to spend this money. They need flexibility and clear direction that allows them to move quickly in a tight and competitive market. A headline figure means little if local authorities cannot draw it down in practice.
“Tenant in Situ works. It prevents homelessness. It keeps families in their homes and gives local authorities a practical tool to intervene when a landlord decides to sell. Yet instead of ramping up this scheme in the middle of a housing emergency, Government restricted it. If Ministers are serious about tackling homelessness, they must expand the tools that work, not dismantle them.
“We need an updated and less restrictive circular immediately, one that empowers local authorities to act decisively and at scale. We also need a clear guarantee that the Tenant in Situ scheme will be adequately funded for 2026 so councils can intervene wherever necessary. Families facing eviction cannot wait for excuses or another announcement. Government must revise the circular without delay, restore funding in real terms, and ramp up Tenant in Situ so councils can prevent homelessness before it happens.”